26/09/2026
Equity Release: Myth v Reality 🏡
You may have heard one or more of the common misunderstandings surrounding Equity Release - I’ve definitely spoken with many people who have said at least one!
These myths sadly often stop people from exploring an option that could genuinely improve their lives and retirement
Let’s clear up some common myths 👇🏼
❌ Myth:
“The lender will now own our home!”
✅ Fact:
With a lifetime mortgage (by far the most common form of equity release nowadays), you remain the legal owner of your home. The lender places a charge on the property, like a standard mortgage or secured loan.
❌ Myth:
“My family will be left with nothing!”
✅ Fact:
Lifetime mortgages approved by the Equity Release Council now come with a ‘No Negative Equity Guarantee’, which means your estate will never owe more than the property’s value when you die or go into long term care. All plans allow you to make voluntary payments if you wish to, and that will help protect inheritance. Many plans also allow you to ringfence a percentage of your home for inheritance if this is important to you, preserving what amount of your home you wish to leave behind to loved ones.
❌ Myth:
“I’ll have to make monthly payments and I can’t afford to!”
✅ Fact:
There is no requirement to make monthly repayments with equity release and lifetime mortgages, which is one of the key things that make them suitable for a lot of customers in their later lives.
The loan (plus the interest) is typically repaid when the last homeowner passes away or moves into long-term care, unless you wish to pay it off sooner than this.
All plans do allow for voluntary repayments to help reduce or stop the effect of compound interest, if you choose to, but they’re not mandatory and they can also be stopped, started or changed at any time, making them one of the most flexible forms of borrowing in the market. You can make no payments, or make payments as and when, rather than having to make a payment every month or for the same amount every time.
❌ Myth
“It’s the same as it was years ago!”
✅ Fact
The equity release market is now by far, one of the most heavily regulated, flexible, and transparent products. The negative reputation it is tarnished with is primarily based on products that were around decades ago and often those which haven’t been entered into for many years.
Today’s products offer many features and flexibilities, such as downsizing protection if you choose to move, the ability to take the mortgage with you to a new property if you do so, inheritance protection guarantees, fixed for life interest rates, the ability to pay the whole balance back ‘early’, and the ability to make no payments, set interest payments, or flexible ad hoc payments; plus the ability to change this over the years whenever you might wish to.
The market has adapted to modern needs and is recommended around you and your plans, to ensure it’s suitable for the rest of your life, if needed.
❌ Myth
“It’s only for people who are struggling!”
✅ Fact
Many homeowners use equity release to enhance their lifestyle or help those that they love, whether that’s home and garden improvements, helping family onto the property ladder or with other life changes like weddings, or simply enjoying later life with more holidays or hobbies etc - I’ve been able to help many clients to achieve a more comfortable retirement or gift money to watch their family enjoy life while they are around to enjoy it with them too!
If you’d like clear, honest advice about whether it could work for you or your family, or whether an alternative solution might be better, I’m always happy to have a no obligation chat so that you can make an informed choice on what’s best for you and your goals.
A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate or affect means tested benefits, so advice is required before proceeding to ensure it’s a good solution for your individual circumstances.
