How to Safely Release Equity from Your Home in the UK

Thinking about unlocking the value of your home? Discover how equity release works in the UK and what plans are available for over-55s in 2025. Whether you want to support retirement, travel, or help your family, this guide compares lifetime mortgages and other options, showing how you can access tax-free cash without monthly repayments. Learn what to expect, how to avoid risks, and which providers are trusted by UK homeowners.

What Are Safe Equity Release Plans in the UK?

Equity release is a financial strategy that allows homeowners aged 55 and over to access the value locked in their property. These plans come in two primary forms: lifetime mortgages and home reversion schemes. Unlike traditional loans, equity release plans provide a tax-free lump sum from your home’s value without requiring monthly repayments, making them an attractive option for retirees seeking additional financial flexibility.

How Does a Lifetime Mortgage Work?

A lifetime mortgage lets you borrow money against your home’s value while retaining full ownership. The loan amount depends on your age and property value, with interest typically rolled up and repaid when you sell the property or pass away. Key benefits include maintaining homeownership and receiving a tax-free cash sum without disrupting your current living situation.

Comparing Lifetime Mortgages vs Reversion Schemes

While lifetime mortgages allow you to borrow against your home’s value, home reversion schemes involve selling a portion of your property to a provider. Each option has unique advantages:

Lifetime Mortgages: Keep full home ownership, flexible borrowing
Home Reversion: Guaranteed cash sum, potential inheritance protection
Both options: No monthly repayments required

Equity Release Calculator and Eligibility Criteria

Determining your equity release potential involves several factors:

Minimum age: 55 years
Minimum property value: Typically £70,000-£100,000
Property type: Must be in good condition
Health and lifestyle can impact borrowing potential

Provider	Plan Type	Maximum Loan-to-Value	Interest Rate	Key Features
Aviva	Lifetime Mortgage	55%	6.3%	No negative equity guarantee
Legal & General	Home Reversion	50%	N/A	Lump sum and partial plan options
LV=	Flexible Lifetime Mortgage	45%	5.9%	Drawdown facility available

Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.

Protecting Yourself: Important Considerations

Always consult an independent financial advisor before proceeding. Look for equity release providers regulated by the Financial Conduct Authority (FCA). Consider potential impacts on: