Equity Release Mortgages

Please be aware Equity Release requires specialist legal and financial advice.

A recent report in the Telegraph online on the 3^rd February 2026 explores the truth about equity release mortgages as there has been bad press about them in the past.

The article reports the following truths about Equity Release Mortgages:

1. There are safeguards in place to ensure you never owe more than your home is worth.
2. Monthly payments are up to the borrower. Monthly payments do not have to be made. If monthly payments are not made the interest will roll up over time until the mortgage is paid off.
3. A lifetime mortgage is a type of product that doesn’t involve selling your home to the lender.
4. You have the right to move home with equity release You can take your lifetime mortgage to a new property as long as it meets the lender’s criteria. If the new property is a lower value, then you may have to pay a portion of the lifetime mortgage back, which could come with early repayment charges.
5. Having an existing mortgage doesn’t mean you cannot release equity from your home.
6. Lifetime mortgages have become increasingly flexible in recent years.
7. Releasing equity with a lifetime mortgage doesn’t have to be expensive. There are a variety of features available that could help you to control the costs.

There are also a lot of advantages to Equity Release Mortgages:

1. You can retain full ownership of your property without having to sell or downsize your property.
2. You can help your children and grand-children with a deposit for a property so they can get their foot on the property ladder. The younger generation are finding it increasingly harder to purchase a property as larger deposits are required.
3. You can make home improvements to your property that you did not think you would be able to afford.
4. You can go on that dream holiday of a lifetime that you did not think you would be able to afford.
5. Equity release can assist in dividing up assets if you get divorced.
6. You can help your children/ grand children go to university.

However, Equity Release mortgages are not suitable for short term borrowing of less than five years due to high early repayment charges.