Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Original poster

Has anyone used equity release for retirement?

121 replies

Lilyflame · 09/12/2025 18:47

I’ve only heard horror stories from the old days where people ended up owing more than the house was worth
ive spoken to one company and it sounds like its doable. I just don’t want to get ripped off

OP posts:
GreenGodiva · 09/12/2025 18:50

I’ve never ever heard anything but bad. I knew a family whose parents did it for £18,000 for a new kitchen and bathroom. Fifteen years later the entire estate was swallowed up and their children got nothing.

if it was that bad i needed to consider it, id be exploring downsizing/moving or taking a lodger in.

SmugglersHaunt · 09/12/2025 19:14

If you want to have anything left for anyone else - don’t. My mum and dad took one out years ago and it’s about to swallow up the entire value of their flat. It’s compound interest so a TOTAL rip off

JudgeBreads · 09/12/2025 19:16

It’s a terrible idea, two independent financial advisors have told us to never go down this route.

Interested in this thread?

Then you might like threads about these subjects:

General money Retirement & pensions
SheinIsShite · 09/12/2025 19:18

And of COURSE the sales rep for an equity release company is going to tell you it's a good idea. Seriously. Go and speak to a financial adviser, or your bank.

BorgQueen · 09/12/2025 19:21

Only if you can afford to pay the interest, otherwise the debt doubles every 8 years.
At 65 you will only get around 45% of the value so unless your home is worth half a million, it won’t fund a retirement.

Lennonjingles · 09/12/2025 19:25

I would only do it if I didn’t have any children. A relative did this in the 1980’s, his wife had died and he didn’t have any children. He did talk to his nephew (my father in law), and was told to go for it. He was late 70’s and wanted to visit friends in Australia, which he did. Within 2 years he was admitted to a care home and house was sold to pay for this. He passed away shortly afterwards and my in laws did get a small inheritance, but they were glad he got to go and see his friends, it certainly made his last years.

user927464 · 09/12/2025 19:27

It's a scam and nobody should do it unless they are absolutely desperate.

x12 · 09/12/2025 19:27

no dc then why not.

People use it sometimes to reduce IHT liability.

Nevergotdivorced · 09/12/2025 19:32

My mother did it, I was left to mop up the mess.

MigGirl · 09/12/2025 19:42

Nevergotdivorced · 09/12/2025 19:32

My mother did it, I was left to mop up the mess.

Yes I'm worried that's what we will be doing with our IL'S as they did it a few years ago now to release money put into the house by MIL's mum as she left some miney to her other child.

What they really should have done was sell the house and downsize. It's not like it's a small house.

Buscobel · 09/12/2025 19:46

We downsized instead.

Sidebeforeself · 09/12/2025 19:50

Don’t do it!! It’s not just that you don’t get to leave anything to your family. You don’t get good value on your property if you need to move on. Your family have to manage the property to the satisfaction of the mortgage company once you have passed. Depending on how long probate and the sale takes that can be a very long obligation. I speak from experience

PermanentTemporary · 09/12/2025 19:52

I think it’s slightly better regulated than in the old days, but that’s not saying much. No from me.

Lidre · 09/12/2025 19:57

GreenGodiva · 09/12/2025 18:50

I’ve never ever heard anything but bad. I knew a family whose parents did it for £18,000 for a new kitchen and bathroom. Fifteen years later the entire estate was swallowed up and their children got nothing.

if it was that bad i needed to consider it, id be exploring downsizing/moving or taking a lodger in.

Downsizing isn't the simple thing everyone thinks it is.

Unless you live in a mansion in a very expensive area, realistically how much are you going to "release" like that after stamp duty and moving expenses?

Plus often, moving somewhere smaller and cheaper will mean a less nice area or property and who wants that as they get older? I'd very happily live somewhere smaller, but I don't want attached neighbours and a detached 2 bed bungalow would cost more than my large detached house.

GETTINGLIKEMYMOTHER · 09/12/2025 20:06

I know someone who’s taken out equity release in her mid 70s. She had a very small income and no savings, but no children, so the inheritance issue didn’t bother her at all.

otherlineeyes · 09/12/2025 22:54

As long as you can pay the interest payments is just a mortgage…
Speak to a good independent mortgage advisor.
Depends on your circumstances and house value whether it’s a good idea or not - it can make sense

Ijwwm · 10/12/2025 01:05

I’m single, no children - so would maybe consider it. But I wouldn’t be doing it too early in my retirement, I’d wait to see how I’m doing on my pension income.

Rough rule of thumb is that whatever you borrow, the debt doubles every ten years.

As another poster said, downsizing is not a magic fix in every case. Bungalows where I am are expensive, not sure I want to move to a flat, then add in stamp duty and all other costs …

My mum did it. We knew she was doing it. We told her to go for it. She’d had it tough for many years, no financial help from anyone else. Her children were her total priority. She got to make a few updates to her small home and she got to travel to a few places she’d always wanted to. Less inheritance for us, and we are just pleased that she got to do these things as she more than deserved it.

But it’s not something to go into blindly, especially if you’re wanting children to receive something.

Touty · 10/12/2025 02:56

A relative of mine did it to pay off some debts, but she pays back the interest every month

GreenGodiva · 10/12/2025 13:13

Lidre · 09/12/2025 19:57

Downsizing isn't the simple thing everyone thinks it is.

Unless you live in a mansion in a very expensive area, realistically how much are you going to "release" like that after stamp duty and moving expenses?

Plus often, moving somewhere smaller and cheaper will mean a less nice area or property and who wants that as they get older? I'd very happily live somewhere smaller, but I don't want attached neighbours and a detached 2 bed bungalow would cost more than my large detached house.

Show quote history

Well I do ate that it depends on where you live . But even where I live, you can have a perfectly serviceable 3 bed house worth £150k and can get a 2 bedroom flat for £70-80 k. I’m pretty sure that money could make for a much more comfortable retirement. In fact for an example, let’s say A owns a house worth about £135k and has a small 2 bedroom flat that she rents out. When she retires she plans to move into the flat with her sister/friend as they are both childfree. Then they will split the flat bills and A will use the house rental money to supplement her pension or possibly sell up. Both sisters/friends plan to travel separately for 3-4 months of the year so I’m sure it will work out just fine. Even if the living situation doesn’t work out, it’s a big chunk of change to free up

Lidre · 10/12/2025 13:15

GreenGodiva · 10/12/2025 13:13

Well I do ate that it depends on where you live . But even where I live, you can have a perfectly serviceable 3 bed house worth £150k and can get a 2 bedroom flat for £70-80 k. I’m pretty sure that money could make for a much more comfortable retirement. In fact for an example, let’s say A owns a house worth about £135k and has a small 2 bedroom flat that she rents out. When she retires she plans to move into the flat with her sister/friend as they are both childfree. Then they will split the flat bills and A will use the house rental money to supplement her pension or possibly sell up. Both sisters/friends plan to travel separately for 3-4 months of the year so I’m sure it will work out just fine. Even if the living situation doesn’t work out, it’s a big chunk of change to free up

Show quote history

But why would you want to spend your retirement in a small flat with no garden and the social problems that often come with living in a block?

OSTMusTisNT · 10/12/2025 13:16

I think it depends if you have family you want to leave your estate to or not as you'll probably end up with £0 if you live into 80's/90's.

Sounds like a great option if you don't have kids but it could mean you won't have any choice when it comes to moving into a care home.

TooManyNiblings · 10/12/2025 13:21

If you have kids, please don't. It just dumps the mess on them to sort out within a year of your death. It's a bloody nightmare, potentially one that will bankrupt them.

surreygirly · 10/12/2025 13:21

It should be made illegal to do it unit 80 years old

Soontobe60 · 10/12/2025 13:22

GreenGodiva · 09/12/2025 18:50

I’ve never ever heard anything but bad. I knew a family whose parents did it for £18,000 for a new kitchen and bathroom. Fifteen years later the entire estate was swallowed up and their children got nothing.

if it was that bad i needed to consider it, id be exploring downsizing/moving or taking a lodger in.

And what’s wrong with that? No one is entitled to an inheritance, but people are entitled to live a nice life with a new kitchen should they wish.

Soontobe60 · 10/12/2025 13:23

JudgeBreads · 09/12/2025 19:16

It’s a terrible idea, two independent financial advisors have told us to never go down this route.

What were their reasons?

Swipe left for the next trending thread