A plain-English guide for UK homeowners aged 55+ · Updated 2 October 2026
This page is general information, not financial advice. Safe Haven Equity is an introducer service. Equity release is a major decision, and you should take advice from a qualified, FCA-regulated adviser before going ahead.
Equity release is a way for homeowners aged 55 or over to access some of the money tied up in their home without selling it. You carry on living in your property, and the amount you release is usually repaid later, most often when you die or move into long-term care. The most common form of equity release is the lifetime mortgage, and that is what this guide focuses on.
A lifetime mortgage is a loan secured against your home. You keep ownership of your property. Most plans do not require monthly payments, and the loan plus interest is usually repaid from the sale of the home when you die or move into long-term care.
Depending on the plan, you may be able to take the money as one lump sum, or in stages (often called drawdown) so you only borrow, and pay interest on, what you actually need. Lifetime mortgages are generally available from age 55, and for joint applications the younger applicant's age usually applies.
On most lifetime mortgages, the interest is added to the loan rather than paid each month. That unpaid interest then earns interest of its own, which is known as compound interest. Over 15 or 20 years the amount owed can be much larger than the amount you first received. Some plans let you make optional payments to slow this down, and a qualified adviser can show you how the figures could look over time for your circumstances.
Equity release is regulated by the Financial Conduct Authority (FCA). Many providers also belong to the Equity Release Council, whose members offer a "no negative equity guarantee". This means you, or your estate, will never owe more than the value of your home when it is sold. Council members also let you stay in your home for life, as long as it remains your main residence and you keep to the terms of the plan.
A qualified, FCA-regulated adviser will look at your circumstances, explain the options that may be open to you, including options other than equity release, and set out the costs and risks. A solicitor will also be involved before you proceed, so you will have the chance to ask questions at more than one stage. You are under no obligation to go ahead.
Equity release is not the only option. Depending on your situation, you may want to look at downsizing, a retirement interest-only mortgage, a standard remortgage, help from family, or checking you are receiving all the benefits you are entitled to, such as Attendance Allowance or Pension Credit.
Equity release lets homeowners aged 55 or over access some of the value tied up in their home without selling it. The most common type is a lifetime mortgage.
Lifetime mortgages are generally available from age 55. For joint applications, the younger applicant's age usually applies.
Usually not. With most lifetime mortgages the loan and interest are repaid when you die or move into long-term care, typically from the sale of the home. Some plans allow optional payments.
It can. Released money may affect entitlement to means-tested benefits such as Pension Credit, particularly if it is held as savings. A qualified adviser can explain how this applies to you.
Yes. You should take advice from an FCA-regulated adviser, and a solicitor will also be involved before you proceed.
Make a no-obligation enquiry and we will introduce you to a qualified adviser who can look at your own circumstances.
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