05th Mar 2026
Equity release
Equity release lets homeowners aged 55+ unlock money tied up in their property without having to move. It’s often promoted as a way to boost retirement income, but it’s not without risks. MoneySavingExpert founder Martin Lewis has spoken many times about equity release, stressing both its benefits and dangers.
Martin Lewis does not endorse individual equity release providers or recommend equity release for everyone. His guidance focuses on understanding the risks, comparing alternatives, and seeking regulated advice before making a decision.
Key Points
- According to Martin Lewis, equity release can free up cash from your home, but compound interest means the debt can grow quickly.
- Martin Lewis advises: only borrow what you need, as late as possible, and only from Equity Release Council (ERC) members.
- Typical lifetime mortgages charge interest of 6–7%, meaning a £50,000 loan could more than double after 15 years.
- Equity release may affect means-tested benefits.
- The golden rule of Martin Lewis: always seek advice from an independent, ERC-registered adviser.
Martin Lewis on Equity Release: At a Glance
| Key question |
His position |
| Does he recommend it? |
Not broadly. He treats it as a carefully considered option rather than a standard recommendation. |
| Can it ever be suitable? |
Yes, for some homeowners in later life. |
| First alternative to consider |
Downsizing. |
| Biggest concern |
Compound interest and long-term cost. |
| Key advice |
Borrow only what you need. |
| View on advice |
Always use regulated, independent advice. |
| Other warnings |
Impact on inheritance and benefits. |
Benefits vs Risks of Equity Release
| Benefits |
Risks |
| ✔ It can provide a much-needed lump sum or income boost for people with limited pensions. |
❌ Compound interest can cause the amount owed to grow quickly over time, significantly reducing the value of your remaining estate. |
| ✔ Many homeowners use equity release to fund home improvements, supplement retirement income, repay existing debts, or help family members financially without having to move house. |
❌ Taking money out of your property could affect entitlement to means-tested benefits such as Pension Credit or Council Tax Support. |
| ✔ Plans approved by the Equity Release Council (ERC) come with a no negative equity guarantee, meaning you will never owe more than the value of your home when the property is sold. |
❌ Equity release can reduce the inheritance left to family members, particularly if the loan runs for many years. |
| ✔ Modern lifetime mortgages can offer flexible features such as optional repayments or inheritance protection, helping some borrowers manage costs more effectively. |
❌ There may be early repayment charges if you decide to repay the loan sooner than expected or move to a property that does not meet lender criteria. |
| |
❌ Equity release is a long-term financial commitment, so it is important to consider alternatives and seek regulated financial advice before proceeding. |
Martin Lewis on Inheritance and Quality of Life
One of the key themes in Martin Lewis’ guidance is the trade off between inheritance and retirement lifestyle.
Because most lifetime mortgages are repaid when you die or move into long term care, equity release will usually reduce the amount left to loved ones. However, Martin Lewis makes clear this is a personal choice.
On MoneySavingExpert he explains that if you have no one to leave assets to, equity release can be “a decent, albeit expensive, route to raise cash.” For those who do have family, he acknowledges that it will likely mean less inheritance, but adds an important reminder: “It is your money, so prioritise your own standard of living.”
In other words, the decision is not about right or wrong, it’s about understanding the cost and deciding what matters most to you.
Martin Lewis on the Cost of Getting It Wrong
On MoneySavingExpert Martin Lewis warns that equity release “should be done in the right way” because if you get it wrong, it can prove “eye wateringly expensive.”
He frequently illustrates the power of compound interest, explaining that borrowing £20,000 at age 60 at 6.5% could double to £40,000 by age 72 and double again to £80,000 by age 84.
His message is consistent: Understand the long term impact before proceeding.
What Equity Release Costs
Side-by-Side Comparison
|
Timeframe
|
Interest at 6.5%
|
Debt Owed
|
|
After 5 years
|
£18,504
|
£8,504
|
|
After 10 years
|
£43,855
|
£93,855
|
|
After 15 years
|
£78,543
|
£128,543
|
*Figures are approximate and for illustration only. They show how compound interest increases the total owed over time.*
👉 A £50,000 loan at 6.5% interest could grow to around £128,500 after 15 years if no repayments are made.
Martin Lewis’ Top Equity Release Advice
1. Borrow only what you need – take out the minimum amount, as late as possible, to reduce interest costs.
2. Choose ERC members – ERC-approved plans offer a no negative equity guarantee.
3. Seek professional advice – always consult an independent adviser or broker who specialises in equity release.
4. Understand the impact on benefits – a lump sum could affect your eligibility for means-tested benefits.
Who Might Consider Equity Release
Equity Release may suit some homeowners who:
- Have significant property wealth but limited retirement income
- Want to remain in their current home rather than downsizing
- Need funds for home improvements, care costs, or supplementing retirement
- Have little concern about leaving a large inheritance
- Fully understand the long-term impact of compound interest
However, equity release is not suitable for everyone.
Who Should Be Cautious?
Equity release may require extra caution if you:
- Recieve means-tested benefits
- Want to leave as much inheritance as possible
- Expect to move home in the near future
- Have alternative borrowing or downsizing options available.
- Are unsure about the long-term costs involved.
Speaking to an FCA-regulated equity release advisor can help you understand it is appropriate for your circumstances.
Partner Spotlight: Age Partnership
If you’re considering equity release, it’s important to compare providers and get independent advice. One option is Age Partnership a specialist adviser with over 20 years’ experience in later-life lending.
Why consider them?
✔ Independent whole-of-market advice – they compare products from leading lenders, not just their own.
✔ Strong customer reputation – Trustpilot 4.6★ (9500+ reviews), with many reviewers praising clear explanations and supportive advisers.
✔ ERC membership – all plans come with the no negative equity guarantee.
❌ Equity release may not be right for everyone – as with any provider, Age Partnership’s plans carry the same risks around compound interest and impact on benefits.
❌ Advice fees – they charge advice fees if you go ahead with a plan, which is common in the market but still worth noting.
💡 Age Partnership can be a good first step for those who want an experienced broker to explain the options in plain English and help ensure they don’t take out more than they need.
Alternatives to Equity Release
- Downsizing
- Retirement interest only mortgages
- Using savings/investment
- Local authority support
- Family assistance
- Remortgaging
- Budgeting changes
While it’s helpful to know what Martin Lewis thinks about equity release, it's also important that you understand the product too. Independent information on equity release is available from the Equity Release Council and the Money Advice Service. Our experts have also written useful guides explaining the benefits and risks of equity release in more detail:
Conclusion
Martin Lewis’ message is clear: Equity release will reduce the value of your estate and may affect entitlement to means-tested benefits. If you do go ahead, borrow as little as possible, make sure the provider is ERC-registered, and take independent advice.
Age Partnership offers a way to access whole-of-market plans with expert guidance, but the decision should always be made very carefully — weighing up today’s financial needs against the future value of your estate.
Try the equity release calculator