Later-Life Finance FAQs

Equity release lets homeowners aged 55 or over access money tied up in their home without moving out. The most common type is a lifetime mortgage, where interest is usually added to the loan rather than paid monthly, so the amount owed grows over time. Our equity release guide explains how it works and the main risks.

Usually, yes. Because interest normally builds up on a lifetime mortgage, the loan can take a large share of your home's value over time, leaving less to pass on. Some plans let you protect part of your property's value or make voluntary repayments. An FCA-regulated adviser should explain the likely effect on your estate.

Not with a plan that meets the Equity Release Council's standards. These include a no negative equity guarantee, so when your home is sold and the terms have been met, you or your estate will not owe more than the sale proceeds after reasonable costs. Check that any plan you consider includes this guarantee.

A retirement interest-only mortgage allows older homeowners to borrow against their property while making monthly interest payments, with the loan typically repaid later in life. Because the interest is paid each month, the amount owed does not usually grow. Our RIO mortgage guide covers eligibility and risks.

Yes. RIO mortgages require regular monthly interest payments, which must be affordable over the long term, including if one borrower dies or income falls. Lenders check this when you apply. The RIO affordability calculator gives a rough idea of how the payments compare with your income.

Yes. Retirement interest-only mortgages are regulated by the Financial Conduct Authority, and they are normally arranged with advice from an FCA-regulated adviser. The adviser should check that the payments are affordable and that the mortgage is suitable compared with the alternatives.

The mortgage is usually repaid when the homeowner passes away, moves into long-term care, or sells the property. With a joint mortgage, it is normally repaid when the last borrower dies or moves into care. The loan is usually repaid from the sale of the home, and anything left passes to your estate.

For some homeowners it could be. A RIO mortgage keeps the debt level if you keep up the monthly interest payments, while a lifetime mortgage usually needs no payments but the debt grows. Which fits depends on your income, age and plans, and an FCA-regulated adviser can compare both with you.

It depends on the difference between the sale price of your current home and the cost of the new one, minus moving costs such as estate agent fees, legal fees, stamp duty and removals. The downsizing calculator gives a rough estimate, and our downsizing guide covers the costs in more detail.

Downsizing usually involves no loan or interest, so it often costs less over the long term, but moving has its own upfront costs and means leaving your home. Equity release lets you stay put, but interest usually builds up. Our comparison of equity release vs downsizing sets out the trade-offs.

The main options include using savings or pension income, downsizing, a retirement interest-only mortgage, equity release, other later-life mortgages and help from family. Each affects your income, home and inheritance differently. Our later-life options page compares them side by side.

For equity release, advice from an FCA-regulated adviser is required. Mortgages, including RIO mortgages, are also regulated and are normally arranged with advice. Downsizing and using savings are not regulated products, but an adviser, solicitor or tax adviser can still help you understand the wider effects.