If you own a home and need extra money, maybe for day‑to‑day bills, a new car, a long‑awaited holiday, or to give financial help to your children or grandchildren, you may have started wondering what options are open to you. For many people, most of their wealth is tied up in their house rather than in cash savings. That can make it feel like the money is locked away and out of reach. Equity release is one way of turning some of that locked‑up value into spendable cash, while still living in the home you love. It can sound complicated at first, but the basic idea is fairly simple. you may have heard of home equity release. This is when you take some of the value out of your home in cash while still living in it. People often think about it when pensions or savings aren’t enough. It might help you pay for home repairs, give you more money to live on, or even help your children buy their own place. But is it right for you? Let’s explain it in simple terms.

What is Home Equity Release?

Equity release is a way to get cash from your house without selling it. You borrow money that is linked to the value of your home. The loan is usually paid back when you sell the house, often after you move into care or pass away.

There are two main types of equity release:

• Lifetime mortgage: The most common option. You borrow money but still own your house. Interest is added over time.
• Home reversion plan: You sell part or all of your home to a company for a lump sum of money. You can still live in the house, but you don’t fully own it anymore.

Both options have good and bad points, so it’s worth looking at them carefully.

How Much Equity Can I Release?

The amount depends on things like:

• Your age: Older people are usually offered more money.
• Your home’s value: A more expensive house means you could release more.
• Any mortgage left: If you still owe money on your home, that amount comes off what you can release.
• Your health: Some companies give more if you have health issues, as they expect the loan to be shorter.

As a rough guide:

• At 60, you might get around 20–25% of your home’s value.
• At 75, you might get closer to 35–40%.

For example, if your house is worth £300,000:

• At 60, you might get about £75,000.
• At 75, you might get about £120,000.

Many companies have online tools that give you an idea, and the exact number depends on your situation.

Choosing Between the Best Equity Release Companies

It’s very important to pick the right company. Don’t just go with the first one you see. Look for:

• Regulation: The company should be approved by the Financial Conduct Authority (FCA).
• Equity Release Council membership: This gives extra protection, like a rule that says you won’t owe more than your home is worth.
• Flexibility: Some plans let you pay back interest early if you want.
• Reviews: Check what other customers say about them.
• Fees: Set-up, legal, and advice costs can add up.

Try to compare at least three companies before choosing.

Pros and Cons of Equity Release

Pros

• You can get a big tax-free lump sum or smaller payments over time.
• You can stay in your home for life.
• It might lower how much inheritance tax your family pays.
• Different options to suit your needs.

Cons

• Your family will get less inheritance.
• Interest builds up quickly if you don’t repay it.
• It can cost a lot if you want to pay it back early.
• It might affect benefits like Pension Credit.

Alternatives to Equity Release

Before choosing equity release, think about other choices:

• Downsizing: Sell your home and buy a smaller one to free up money.
• Remortgaging: If you’re younger, this might be cheaper.
• Savings and investments: Use these first if you can.
• Government help: Some councils give loans or grants for home repairs.

Equity release is just one option. It’s not the only way.

Think Equity Release might be for you?

Home equity release could give you money from your home to use in later life, but it’s a big decision. Think about the good and bad points carefully. Comparing the best equity release companies, learning the types of equity release, and working out how much equity you can release will help you make a better choice. Remember, this is general information, not personal advice.