Why equity release requires advice from a qualified adviser

Equity release allows homeowners aged 55 and over to access tax‑free cash from their home, without the need to make regular repayments. It’s a long-term financial commitment that requires advice from a fully qualified adviser with the right specialist knowledge to fully discuss the mortgages on the market, and the advantages and disadvantages of them. (You can find a full list of the advantages and disadvantages of equity release on our ‘what is equity release?’ page).

Equity release is regulated by the Financial Conduct Authority (FCA). This means you’ll always receive advice from a fully qualified adviser, whose role is to make sure equity release is right for you both now and in the future.

How an equity release adviser helps you 

Everyone’s situation is different, and equity release isn’t a one-size-fits-all financial solution. Rather it’s a fully regulated process to ensure it’s a good fit for different people and their individual situation. An adviser will guide you through the overall process to ensure it’s the right choice for you and help you avoid potentially costly pitfalls.

There are five key ways a qualified equity release adviser can support you:

1. Verify your eligibility: You need to be over 55 to apply for a lifetime mortgage, and your property needs to meet certain lending criteria. These criteria differ depending on the lifetime mortgage, and your adviser will confirm your eligibility and present your options to you.

2. Check how it could affect your benefits: Releasing equity can sometimes affect any means-tested state benefits that depend on your income or savings. It can also influence your overall tax position. Your adviser will explain this clearly and help you understand what it could mean for you.

3. Review the figures for you: Your adviser will help you understand how much you could borrow and what it could mean for you over time. They’ll explain how interest builds up and any early repayment charges that may apply, guiding you through the costs in a clear and simple way.

4. Explore alternatives with you: Your adviser will help by making sure what you choose meets your requirements, so if downsizing or an alternative later life lending product is a better fit, they will talk you through this.

5. Source the best equity release plan for you: Your adviser will match a later life or lifetime mortgage to your needs, taking into account flexible features such as voluntary repayments, optional repayments, length of Early Repayment Charges (often abbreviated to ERCs), inheritance protection, and overall lending criteria. Most equity release advisers work on a whole-of-market basis, so they can source from all available options.

What’s the process for releasing equity? 

Equity release is a regulated process, and your independent adviser will ensure that the lifetime mortgage in question aligns with your needs and financial goals. Although every application is slightly different, most lifetime mortgage journeys follow a clear step‑by‑step process, from checking your eligibility to getting your home valued and then through to receiving your funds. Your adviser will guide you at every stage.  

We’ve created a handy step-by-step illustration for your convenience alongside a general overview of the equity release process with information on finding independent advice. 

View this page to learn more about how equity release works>

You can also read through our helpful process articles. Find out more about preparing for your lifetime mortgage application, preparing for a valuation, and why property condition matters.

Equity release and independent legal advice 

As part of the process, you’ll hire both an equity release adviser and an independent solicitor to support you.

Your solicitor will provide independent guidance on the legal aspects and will ensure you understand the contract, confirm the advice process has been followed, and handle the legal work, such as:

• Reviewing and explaining the mortgage terms

• Managing the legal documentation

• Overseeing the release of funds

Your independent solicitor works for you, not for the lender or the equity release adviser, and this independence ensures you’re receiving impartial guidance focused solely on your needs.

The FCA and Equity Release Council

Equity release advisers are qualified and regulated by the Financial Conduct Authority (FCA), which means there are safeguards in place to protect you. For example, you’ll usually be encouraged to involve your family and to seek independent legal advice before going ahead.

The Equity Release Council (ERC) also sets the standards for the industry, helping to make sure customers are treated fairly.

ERC standards

The Equity Release Council’s standards protect customers and ensure fairness across the industry. These include the right to stay in your home for life, a ‘no negative equity guarantee’ meaning you never owe more than the value of your home when sold, and the ability to move to another suitable property without early repayment charges. In some cases, if you move to a lower value property, partial repayment of your lifetime mortgage may be required.

Is equity release right for you? 

Your independent equity release adviser will help you decide whether equity release is right for you. If the disadvantages of equity release outweigh the advantages, your adviser will take the time to explore alternative financial solutions with you.

If you’re exploring your options, it’s completely fine to take your time. Finding out how equity release works, and what alternatives may be available, can help you feel more confident about any next steps. You may find these articles helpful:

• What you can use a lifetime mortgage for

• Common misconceptions of equity release