# Is equity release or downsizing cheaper?

> Quick answer · Last updated 4 July 2026

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## In short

Downsizing is usually cheaper long term because you release equity without compounded loan interest. Equity release lifetime mortgages can double debt every 12–15 years at typical roll-up rates, while downsizing has one-off moving costs but no growing debt.

Downsizing costs stamp duty, legal fees, agent commission and moving — often £15,000–£30,000 all in — but the released equity is yours outright.

A £100,000 lifetime mortgage at 6% roll-up becomes roughly £200,000 owed in 12 years. House prices would need strong growth to preserve inheritance.

Downsizing also cuts council tax, energy and maintenance. Equity release lets you stay put — rational when health, caring or community ties make moving impractical.

Model both with actual quotes. See equity release alternatives guide.

## Related

- [Equity release alternatives](https://moneyguide.org.uk/mortgages/equity-release-alternatives-guide/)
- [What is equity release?](https://moneyguide.org.uk/answers/what-is-equity-release/)

## Primary source

equityreleasecouncil.com

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.