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Property Finance — April 2026
Equity release lets homeowners aged 55+ access cash tied up in their property without selling it. It is most commonly used to supplement retirement income, pay off debts or fund home improvements.
Two Types of Equity Release
Type
How It Works
Best For
Lifetime Mortgage
Borrow against home — interest rolls up — repaid on death or move into care
Most homeowners — most flexible 95% of plans
Home Reversion
Sell part of home at below market value — provider gets share on sale
Those wanting no interest to accrue
How Much Can You Borrow?
Age
Typical Maximum as % of Property Value
55
20 to 25%
60
25 to 30%
65
30 to 35%
70
35 to 40%
80+
Up to 50%
Equity Release Costs
Cost
Typical Amount
Arrangement fee
£500 to £1,000
Valuation fee
£200 to £500
Solicitor fees mandatory
£800 to £1,500
Financial adviser fee
£1,000 to £2,000
Interest rate
5 to 7% fixed for life
Important: Equity release is FCA regulated. You must take independent financial advice before taking out any plan. Never sign up without speaking to a qualified FCA adviser.
Risks of Equity Release
Interest compounds rapidly — £50,000 at 6% doubles to £100,000 in about 12 years
Reduces the value of your estate
May affect means-tested benefits entitlement
Early repayment charges can be very high
Alternatives to Consider First
Alternative
Key Advantage
Downsizing
Release more cash with no ongoing interest
Retirement interest-only mortgage
Interest does not compound
Benefits check
May qualify for Pension Credit or other support
Bottom line: Equity release can provide significant retirement income but costs are high and the impact on your estate is substantial. Always get independent FCA-regulated advice first. Consider downsizing — it typically releases more cash with no compounding interest.
The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Co Founder and lead editor of Kael Tripton. LBS MBA (Sloan Fellow), AI/ML postgraduate (IIIT Bangalore). 22 years in marketing and commercial roles across 23 markets. Covers UK money, tax and visas.
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