# What is equity release?

> Quick answer · Last updated 4 July 2026

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## In short

Equity release lets homeowners aged 55+ borrow against their home without selling it. The most common type is a lifetime mortgage where interest rolls up until you die or move into long-term care — regulated advice is required before you sign.

With a lifetime mortgage you keep ownership. Interest compounds on the loan — at 6% a £50,000 advance can become roughly £100,000 owed in 12 years. Equity Release Council plans include a no-negative-equity guarantee.

Alternatives include downsizing, a retirement interest-only (RIO) mortgage if you can afford monthly interest, or local authority grants for adaptations. Equity release can affect means-tested benefits such as Pension Credit.

Read our full equity release guide before speaking to an adviser. This is information only — not regulated financial advice.

## Related

- [Equity release explained](https://moneyguide.org.uk/mortgages/equity-release/)
- [Equity release alternatives](https://moneyguide.org.uk/mortgages/equity-release-alternatives-guide/)
- [Inheritance Tax calculator](https://moneyguide.org.uk/tools/inheritance-tax-calculator/)
- [Mortgages hub](https://moneyguide.org.uk/mortgages/)

## Primary source

gov.uk/equity-release

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