For many homeowners over 55, equity release can offer a practical way to unlock funds from their home. Yet despite its growing popularity, there are still several myths and misunderstandings that can make people feel hesitant or even fearful about exploring it.

Let’s clear up some of the most common myths and explain what’s actually true.

Myth 1: You’ll Lose Ownership of Your Home

Reality: With most modern equity release products, especially lifetime mortgages, you stay in full ownership of your home. You continue living there for as long as you wish. The lender simply secures the loan against your home – just like a standard mortgage.

Myth 2: You Can’t Leave an Inheritance

Reality: Equity release can affect how much you leave behind, but it doesn’t automatically mean there’ll be nothing for your loved ones. Many plans allow you to ring-fence a portion of your property’s value to pass on, if that’s important to you. It’s about planning carefully and choosing the right option for your goals.

Myth 3: It’s Only a Last Resort

Reality: Equity release is not just for those in financial difficulty. Many people use it to improve their lifestyle, cover care costs, support family, or pay off interest-only mortgages. With the right advice, it can be a useful tool for managing money in later life.

Myth 4: You’ll End Up in Debt You Can’t Control

Reality: A key feature of lifetime mortgages is the “no negative equity guarantee”. This means you or your estate will never owe more than the value of your home when it is sold – even if the loan ends up being higher than that. So your family won’t be left with unexpected debts.

Myth 5: You Can’t Move House Afterwards

Reality: Many equity release products are portable, meaning you can move to another suitable property and take your plan with you. It just needs to meet the lender’s criteria. Flexibility has improved a great deal over the years.

Myth 6: It’s Too Complicated to Understand

Reality: Equity release can seem complex, but with the right guidance, it becomes much clearer. A qualified adviser can help you understand your options, compare products, and decide if it’s the right step for you. You won’t be pressured – just supported.

Final Thought

Equity release isn’t for everyone, but the myths surrounding it shouldn’t stop you from getting the facts. The most important step is to speak with someone who understands your situation and can help you make an informed decision.

At Adrian McClaren Mortgages, we’ve been helping homeowners make confident, well-informed choices since 1984. If you’d like to explore whether equity release could be right for you, we’re here to guide you every step of the way.

👉Learn more about equity release here