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Life doesn’t stop when you retire. In fact, for many people, retirement is when they finally have time to do the things they’ve always wanted to do. But sometimes, your pension income doesn’t quite stretch far enough to cover everything you’d hoped for.
If you’re a homeowner aged 55 or over, you might be sitting on a valuable asset that could help fund those plans. This valuable asset is the equity in your home. ‘Why would I release equity from my home?’ is a great question, and more importantly, what are people actually using any released equity for?
Let me share the most common reasons I see homeowners choosing equity release, based on real conversations with clients who’ve made this decision.
Understanding Releasing Equity
Before we explore why people release equity, let’s quickly cover what it means. Releasing equity allows you to access some of the value tied up in your home whilst continuing to live there. This can be done using different types of mortgages, such as a normal mortgage, a Retirement Interest-Only Mortgage or a Lifetime Mortgage.
A Lifetime Mortgage is one type of Equity Release. The other type is called Home Reversion which involves selling your home to the lender and living in the property rent free for the rest of your life – we will not be considering a Home Reversion here. Instead, we’ll be looking at how to release equity using a Lifetime Mortgage.
The most common type is called a Lifetime Mortgage. You borrow a percentage of your home’s value, and the loan (plus interest) is repaid, typically from the sale of your property, when you pass away or move into permanent care.
Now, let’s look at what people can do with that money.
1. Making Your Home More Comfortable
One of the most popular reasons people ask, ‘Why would I release equity from my home?’ is to make improvements that help them stay there longer and more comfortably.
Home Adaptations for Mobility
As we age, our homes might need some adjustments. I’ve worked with clients who’ve used equity release to install:
- Stairlifts or even home lifts
- Walk-in showers or wet rooms
- Ramps and handrails
- Wider doorways for wheelchair access
Releasing an equity amount, such as £35,000, can help pay towards converting rooms, installing essential mobility equipment and aids, or improving outdoor spaces and access.
Some people simply want to update their living space with general home improvements. After decades of raising children and working full-time, many of my clients finally have the time to create the home they’ve always wanted. Popular improvements include:
- New kitchens and bathrooms
- Extensions or conservatories
- Garden landscaping (especially low-maintenance designs)
- Energy efficiency upgrades like new boilers or solar panels
Using equity to remodel rooms, such as knocking through to create an open-plan kitchen-diner, can improve living spaces and boost how people feel about and act in their homes.
2. Helping Children and Grandchildren
Clients wanting to help their children and grandchildren is probably the most emotional reason I encounter, for wanting to release equity from their home. Parents and grandparents who’ve worked hard to build property wealth often want to help their families whilst they’re alive, so they can see the joy it brings.
The Deposit Dilemma
Getting on the property ladder is incredibly difficult for young people today. Many of my clients find themselves in a position where they have equity in their home, but their children are struggling to save a deposit. They want to help their children now rather than waiting until a property must be inherited. At least then, parents can see their children settled and happy in their own home.
Education Costs
Some grandparents or parents use equity release to help with university fees or private school costs. Others contribute to driving lessons, wedding costs, or help a family member start a business.
Important Considerations
If you’re considering using equity release to help your family, it’s worth discussing it openly with them. Equity release reduces the inheritance you’ll leave, so everyone should understand this trade-off. I encourage my clients to involve their adult children in these conversations from the start.
3. Funding the Retirement You Deserve
After years of working, many people find their pension doesn’t quite provide the retirement lifestyle they’d hoped for. Equity release can bridge that gap and improve the quality of life, while everyone can enjoy it. Retirement is about enjoying yourself, and I’ve had clients use equity release to fund:
Travel and adventures
- Once-in-a-lifetime trips to New Zealand, Canada, or safari holidays
- Regular visits to family living abroad
- Cruise holidays they’d always dreamed about
- Campervans for touring the UK and Europe.
Hobbies and Leisure
- Buy a caravan or motorhome
- Purchase a boat
- Fund art classes, photography equipment, or musical instruments
- Join golf clubs or fitness memberships.
4. Clearing Existing Debts
Sometimes the question, ‘How can I release equity from my home?’ comes from a place of financial stress rather than aspirational goals. And that’s perfectly valid too.
If you’re juggling multiple credit cards, loans, or an interest-only mortgage that’s coming to an end, equity release might help you consolidate expensive debts. By clearing these debts, you eliminate monthly repayments and simplify your finances.
Some clients use equity release as part of their inheritance tax planning strategy, working alongside their financial advisor or accountant to reduce the value of their estate whilst gifting money to family members.
This is a specialist area, and I always recommend speaking with an independent financial advisor (IFA) who can consider your whole financial picture.
5. Paying for Care
Nobody likes to think about needing care, but planning ahead can give you more control and better options when considering home care support, residential care, or future respite.
Many people prefer to receive care in their own home rather than moving into a residential facility. Equity release can help fund private carer visits, live-in care arrangements, and property adaptations, including equipment and technology to support independent living.
If a family member is caring for you, equity release might fund regular respite care, giving them much-needed breaks whilst ensuring you’re professionally cared for.
6. Supplementing Pension Income
Some clients don’t have one big expense in mind. They simply need a bit more money each month to live comfortably and enjoy later life.
With a Lifetime Mortgage, you can take an initial lump sum and then use a drawdown facility to take smaller amounts as you need them. Having an extra few hundred pounds per month will give you so much more choice to do the things you love in life without stressing over where the money will come from.
What’s Right for You?
The beauty of releasing equity is the flexibility. There’s no right or wrong reason to access the value in your home. What matters is whether it’s the right financial decision for your circumstances.
When clients ask me how they can release equity from their home, my first response is always to understand what they’re hoping to achieve. Then we can explore whether a Lifetime Mortgage is the best way to get there, or whether other options, such as Retirement Interest Only Mortgages or downsizing, might be better.
Is Releasing Equity the Right Choice?
Equity release isn’t suitable for everyone. Here are some questions to consider:
- Do you plan to stay in your home long-term?
Equity release works best if you’re settled and happy where you are. If you’re thinking about downsizing in the next few years, it might not be the right time. - Have you explored all alternatives? Before releasing equity, consider whether other options could work:
- Could you downsize to a smaller property?
- Are you claiming all the benefits and pension credits you’re entitled to?
- Could savings or investments cover your needs?
- Would family help if you asked?
- Does the benefit outweigh the cost?
A Lifetime mortgage reduces the value of your estate because the loan grows over time. But if it improves your quality of life now, or helps family when they need it most, many clients feel that trade-off is worthwhile.
- Have you discussed it with family?
Open conversations prevent surprises and resentment later. I always encourage clients to involve their children in the decision-making process.
The Next Step
The first step to releasing equity from your home is a conversation with a qualified specialist advisor. I specialise in clients over the age of 55 and I am a member of the Equity Release Council with over 15 years of experience in the mortgage industry.
In an initial consultation, we’ll:
- Discuss your reasons for considering equity release
- Calculate how much you could potentially release
- Explain the costs and how interest works
- Explore alternative options
- Answer all your questions without pressure
I’ve been helping homeowners across the UK make informed decisions about releasing equity for years. Every situation is unique, and there’s never a one-size-fits-all answer.
Whatever your reason for considering releasing equity – whether it’s making your home more comfortable, helping family, funding adventures, or simply having more financial breathing room – the most important thing is making the right decision for you.
If you’d like to explore whether a Lifetime Mortgage could help you achieve your goals, I’d love to hear from you. Book a free, no-obligation consultation, and we’ll talk through your options together.
Frequently Asked Questions
Ready to Explore Your Options?
If you’d like to discuss your options in a friendly, no-obligation consultation, I’d be happy to help. I can visit you at home in Staffordshire, the surrounding counties, or arrange a video call if you’re further afield.
Call me on 07990 836455 or get in touch here to book your free consultation.
Important Information
A lifetime mortgage is not suitable for everyone, and it is important to seek financial advice before taking any action. All other options available should be explored before choosing equity release.
Interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home potentially to nothing. Please discuss with your family and beneficiaries.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Jane Jackson Financial Solutions is a trading name of Just Mortgages Direct Limited, an appointed representative of The Openwork Partnership – one of the UK’s largest Financial Advice networks with over 4,500 advisers nationwide.
