Equity release describes arrangements that let an older homeowner convert part of the value of their home into cash while continuing to live there. Two families of product exist in the UK market: lifetime mortgages, which are loans secured against the property, and home reversion plans, in which a share of the property is sold to a provider. A lifetime mortgage remains the dominant structure. No monthly payment is usually required, although most contemporary contracts permit voluntary repayments. The loan and any rolled-up interest are repaid when the last borrower dies or moves permanently into long-term care, ordinarily from the sale of the property.
Client-friendly explanation
Equity release lets you take money out of your home without moving. You keep living there, and the money is usually paid back when the property is eventually sold.
Last verified 2026-09-13 · Effective from 2026-09-13 · sample
Information and software, not advice. Equity Fountain is not authorised or regulated by the Financial Conduct Authority and does not provide regulated financial, mortgage, equity-release, tax, legal or probate advice. It provides research tools, factual market information, modelling and educational resources for professional users. The subscribing adviser remains responsible for verification, suitability and client advice. Provider documentation takes precedence over anything shown here.