Choosing the right equity release option can have long-term financial consequences, particularly for retirees managing limited income and estate planning.

This article reviews MoneySavingExpert’s guidance on equity release, highlighting how to identify regulated providers, avoid common pitfalls, and assess whether alternatives such as downsizing or government support may be more appropriate.

With independent tools, comparison resources, and FCA-aligned advice, MoneySavingExpert has become a trusted source of impartial information for UK homeowners exploring later-life borrowing.

Therefore:

NOTE: EveryInvestor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of EveryInvestor only and may not reflect the views or opinions of MoneySavingExpert.com. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by MoneySavingExpert.com.

Who Owns MoneySavingExpert and Is It Trustworthy?

MoneySavingExpert.com was founded in 2003 by Martin Lewis, a well-known UK financial journalist and consumer advocate. The site provides impartial guidance on a range of financial topics, including budgeting, credit cards, mortgages, and equity release.

In 2012, MoneySavingExpert was acquired by the MoneySupermarket Group for £87 million, securing its future while maintaining editorial independence².

Today, it is one of the UK’s most visited consumer websites, attracting over 16 million monthly users seeking to reduce bills, find better financial deals, and improve their financial literacy³.

Why Trust Martin Lewis and MoneySavingExpert for Equity Release Information?

MoneySavingExpert’s content is researched and written by experienced financial journalists and verified by specialists. While the site does not sell equity release products directly, it provides tools and guidance to help users evaluate their options, understand the risks of compound interest, and avoid unregulated providers.

According to the site, users who follow its advice can save up to 25% of their income by adopting cost-cutting strategies and choosing better financial products⁴.

MoneySavingExpert has earned several industry accolades, including:

• Most Useful Website of the Year (2003)
• Bradford & Bingley Personal Finance New Media Award (2005)
• Hitwise Top Business Information Website (2010)
• Brand of the Year – Drum Online Media Awards (2018)⁵

These achievements, combined with its editorial independence and regulatory focus, make MoneySavingExpert a reliable source for understanding equity release and other complex financial products.

What Does MSE Say About Equity Release Plans?

MoneySavingExpert (MSE) provides impartial guidance on equity release, focusing on both its potential uses and significant long-term implications. While not opposed to equity release, MSE strongly encourages exploring alternatives first and fully understanding the compounding cost of borrowing against home equity.

What Is an Equity Release Scheme in the UK?

According to MSE, equity release allows homeowners aged 55 and over to access a portion of their property’s value without having to sell or move out. The most common forms are:

• Lifetime mortgages – a loan secured against your home that doesn’t require monthly repayments. Interest compounds over time and is typically repaid from the sale of your home when you die or enter long-term care.
• Home reversion plans – where you sell part (or all) of your home to a provider in exchange for a tax-free lump sum or regular payments, but continue to live there rent-free.

MSE warns that while these schemes can provide flexibility in retirement, they can also substantially reduce the value of your estate and affect eligibility for means-tested benefits like Pension Credit or Council Tax Reduction⁶.

Martin Lewis’s Key Advice on Equity Release

Martin Lewis recommends treating equity release as a last resort rather than a go-to financial product. His main points include:

• Explore alternatives first: These might include downsizing, remortgaging, cutting unnecessary spending, or checking eligibility for government grants or social care support.
• Understand compound interest: With lifetime mortgages, interest accrues on both the initial loan and previous interest, which can double the debt every 14–15 years depending on the rate.
• Check lender regulation: Always use a provider approved by the Equity Release Council to benefit from safeguards like the no negative equity guarantee, ensuring you will never owe more than your home’s value⁷.
• Seek independent financial advice: MSE strongly recommends using an FCA-regulated financial adviser with equity release qualifications before making any commitments⁸.

How to Qualify for Equity Release in the UK

Equity release isn’t available to everyone, and understanding the basic eligibility criteria is the first step toward determining if this later-life borrowing option suits your circumstances.

Eligibility Criteria for Equity Release

To qualify for equity release in the UK, MoneySavingExpert outlines the following key requirements:

• Minimum age: You must be at least 55 years old. Some providers may set higher age thresholds depending on the product.
• Property value: Your property should typically be worth at least £70,000, although this varies by lender.
• Location: The property must be in the UK and generally be your main residence.
• Property condition: Homes should be in reasonable condition and meet basic structural standards.
• Mortgage status: You must either own your home outright or have a small remaining mortgage balance that will be repaid with the equity release funds.

In addition to meeting technical criteria, inheritance planning is a key consideration. Equity release will reduce the value of your estate, and MSE encourages applicants to discuss this impact with their family and a qualified adviser⁹.

Application Process Through MoneySavingExpert

MoneySavingExpert does not offer equity release products directly, but it provides helpful comparison tools and educational guides to support the application process.

According to MSE, applying typically involves:

1. Research – Understand how equity release works, the pros and cons, and available schemes.
2. Use comparison tools – Evaluate different plans and providers using trusted comparison websites.
3. Consult an FCA-regulated adviser – This step is mandatory for equity release and ensures suitability and compliance.
4. Valuation and legal advice – Your property will be valued, and independent legal advice is required before contracts are signed.
5. Receive funds – Once approved, funds are released either as a lump sum or via drawdown.

This multi-step process is designed to protect consumers and ensure they fully understand the implications of borrowing against their home.

Considering Alternatives: MSE’s Loan Advice

MoneySavingExpert often highlights that equity release should not be the default option for accessing funds.

Alternatives to consider include:

• Low-interest personal loans (if you meet affordability checks)
• Secured homeowner loans
• Remortgaging
• Government grants or local authority support, especially for home improvements or energy efficiency upgrades
• Downsizing, which releases capital without taking on debt

These alternatives often have lower long-term costs and fewer implications for inheritance. Comparing these options side by side is crucial to ensure equity release is the most appropriate financial path¹⁰.

Equity Release Interest Rates and Fees Explained

Equity release products, especially lifetime mortgages, come with long-term financial commitments that can significantly impact your estate value.

Understanding how interest compounds and what fees are involved is essential before proceeding.

Current Interest Rates for Lifetime Mortgages

According to MoneySavingExpert, interest rates for equity release, particularly lifetime mortgages, can vary significantly depending on the lender, product features (e.g. drawdown vs lump sum), and your age and property value.

As of June 2025, typical equity release interest rates in the UK range between 5.85% and 6.45% AER. These are fixed for life but accumulate through compound interest, meaning you pay interest on both the loan and previously accrued interest over time.

To illustrate this, MoneySavingExpert offers a free equity release calculator that shows how quickly a £50,000 loan can double in cost over 15–20 years depending on the rate applied¹¹.

Common Fees Associated with Equity Release

While some equity release providers offer no upfront fees, many charge for the following:

• Valuation fees: Often waived, but may apply for high-value or unusual properties
• Legal fees: Usually £600–£1,500 for independent legal advice
• Advice fees: Some advisers charge up to £995, though others are commission-based
• Lender arrangement fees: These can range from £0 to £1,000, depending on the provider and plan

MSE recommends comparing total cost of borrowing, not just interest rate, to understand your long-term financial exposure¹².

How MSE Helps You Compare Equity Release Providers

MoneySavingExpert provides users with free, impartial tools and editorial guidance to evaluate equity release providers safely and transparently.

Here’s how MSE helps you compare options:

• Provider Comparison Tools: MSE links to third-party FCA-authorised advisers and broker platforms where you can compare quotes across multiple equity release lenders. These comparisons usually show interest rates, plan types (e.g. lump sum or drawdown), and early repayment features.
• Lifetime Mortgage Calculator: Their calculator estimates how much you could borrow and how compound interest will affect your estate over time, helping you compare total costs between providers.
• Educational Criteria: MSE teaches you what to look for when comparing providers, including:
  • Whether the lender is a member of the Equity Release Council
  • The presence of a no-negative-equity guarantee
  • The ability to make voluntary repayments or port the plan if you move
• Independent Guidance: Rather than steering users toward specific companies, MSE focuses on explaining how to evaluate provider reputations, terms, and fees, arming users with decision-making power.

While MSE itself doesn’t provide financial advice or sell plans, its platform connects users to verified information and FCA-regulated brokers, helping them compare offers confidently.

MoneySavingExpert does not provide equity release products or financial advice directly. Instead, it offers impartial tools, checklists, and calculators to help users compare FCA-regulated equity release providers.

Regulatory Oversight and Provider Safety

All brokers or providers listed or linked through MSE are expected to be authorised by the Financial Conduct Authority (FCA). MSE itself is operated by:

• MoneySavingExpert.com Limited
• FCA Registration Number: 587302
• Companies House Number: 03157344
• Registered Office: One Dean Street, London, W1D 3RB

You can verify their regulatory status via the FCA Register.

Contact Information

For questions about MSE’s content or comparison tools:

• Email: furtherhelp@moneysavingexpert.com
• Phone: +44 203 846 2796
• Website: www.moneysavingexpert.com
• One, Dean Street, London, W1D 3RB.

Is MoneySavingExpert’s Equity Release Advice Reliable?

MoneySavingExpert has earned a strong reputation for impartial, user-focused financial guidance, and its equity release content is no exception.

While it does not offer financial products, it provides accurate, well-researched information to help UK homeowners understand the risks and responsibilities associated with equity release.

Independent Editorial Approach

MoneySavingExpert’s equity release articles are written by qualified financial journalists and reviewed for accuracy. The site maintains a strict editorial independence policy, and its founder, Martin Lewis, does not profit from product promotion or affiliate links in this space.

This guide is an independent third-party review, unaffiliated with MSE, created to analyse the platform’s equity release insights and resources.

What Do Users Say About MSE?

MSE consistently receives positive feedback for its clarity, transparency, and consumer-first approach. While the site itself does not collect equity release-specific testimonials, it maintains strong general review scores on leading platforms:

• Trustpilot: 4.7 stars (over 20,000 reviews)
• Review Centre: Frequently praised for helping users make informed financial decisions
• Smart Money People: Users value the site’s impartiality and straightforward guidance

You can explore MSE’s reputation further by reading verified user reviews:

• MSE on Trustpilot
• Review Centre Reviews
• Smart Money People Reviews

Real-World Case Studies

MSE occasionally features anonymised case studies to demonstrate how equity release may be used. These examples show real homeowners using lifetime mortgages to:

• Fund home improvements
• Clear unsecured debt
• Support family members
• Supplement retirement income without monthly repayments

One such case involved a retired couple who used equity release to renovate their home and contribute to their grandchildren’s education, while retaining full occupancy of their property under a no-negative-equity guarantee.

Community Discussion: The MSE Equity Release Forum

For those seeking peer feedback, the MoneySavingExpert Forum offers a dedicated space where users discuss their experiences with equity release providers, products, and brokers.

Key benefits of the forum include:

• Honest, real-world feedback from people who’ve used equity release
• Advice on provider transparency, fees, and regret-proofing your decision
• A place to ask questions and learn from others before speaking with a financial adviser

Common Questions

In Conclusion: MoneySavingExpert Equity Release

MoneySavingExpert is a trusted source of impartial information for homeowners considering equity release in the UK. While it does not sell financial products, the site helps users understand the benefits, risks, and long-term consequences of unlocking home equity later in life.

Martin Lewis consistently encourages homeowners to explore tax-efficient savings strategies, such as ISAs and pensions, before resorting to equity release. Where borrowing is necessary, MSE highlights the importance of seeking advice from an FCA-regulated equity release specialist.

Users can also access the MoneySavingExpert Forum, where real people share their equity release experiences, ask questions, and offer peer support on navigating this complex financial decision.

Before making any commitment, it’s essential to consult an independent financial adviser to determine whether equity release aligns with your long-term goals.

The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.