Equity release under 55: what options exist?
Written and reviewed by the Later Life editorial teamUpdated 4 min read
Equity release under 55 is limited. Standard lifetime mortgages start at 55, so younger homeowners have fewer routes. Some lenders offer payment-term lifetime mortgages from 50, and other options include a retirement interest-only (RIO) mortgage where a lender's minimum age allows, or remortgaging. Each involves monthly payments and its own trade-offs.
This page explains what exists before 55 and how the options compare. For how equity release works once you qualify, see our equity release guide. It is general information, not financial advice.
Why equity release usually starts at 55
A lifetime mortgage has no fixed end date. It is repaid when the last borrower dies or moves into long-term care. The younger you are, the longer the loan is likely to run, and the more interest can build up. So lenders set a minimum age, normally 55. On a joint plan, both borrowers usually need to reach it.
Our guide to equity release over 55 covers the age rules in more detail.
Equity release under 55: payment-term lifetime mortgages
A payment-term lifetime mortgage, also called a mandatory payment lifetime mortgage, is the form of equity release that some lenders offer before 55, from age 50 on some products. On one lender's published product, the payment term can end between ages 55 and 75.
You make monthly interest payments for the agreed term, which stops the debt growing during that time. The Equity Release Council says that if mandatory payments are not made, the home is at risk of repossession. Its core protections continue provided you keep up payments during the mandatory period.
Because payments are required, the lender will look at whether you can afford them. When the term ends, the plan terms set out what happens to the interest from then on. Fees and early repayment charges apply as with other lifetime mortgages; our guide to equity release costs explains them.
Retirement interest-only (RIO) mortgages
A retirement interest-only (RIO) mortgage is a mortgage where you pay the interest each month and the loan is repaid when the home is sold, usually after death or a move into long-term care. MoneyHelper says each lender sets its own rules on who can apply, and the minimum age varies, so whether a RIO mortgage is available before 55 depends on the lender.
A RIO mortgage is not equity release, and the monthly payments must stay affordable for life. Missing them could put your home at risk. Our guide to RIO eligibility and affordability explains how lenders assess this.
Remortgaging or a further advance
Another route is a standard mortgage. You could remortgage to a new lender or ask your current lender for a further advance. The lender checks your income and your age when the term would end. You make monthly payments, either repaying the capital or, on some deals, interest only. Our overview of later life mortgages compares these with retirement products.
Pension savings are not usually an alternative before 55 either. The normal minimum age for accessing a private pension is 55, rising to 57 from 6 April 2028.
Comparing the routes before 55
| Route | Typical minimum age | Monthly payments | If payments stop |
|---|---|---|---|
| Payment-term lifetime mortgage | 50 on some products | Required for a set term | Home could be at risk |
| RIO mortgage | Set by each lender | Required for life | Home could be at risk |
| Remortgage or further advance | Set by each lender | Required | Home could be at risk |
| Waiting for a standard lifetime mortgage | 55 | Not required | Interest is added to the loan |
Waiting until 55
Some people wait until they reach 55. The share of your home you may be able to release generally rises with age. MoneyHelper says that, broadly, a lifetime mortgage will likely only offer around 10% to 20% of a home's value at 55. Once you reach 55, our equity release calculator can give an indicative figure. Waiting also shortens the time interest has to build up. The trade-off is going without the money now.
Next step
Because the routes before 55 all involve monthly payments, an FCA-regulated adviser who covers both mortgages and equity release can compare them for your income and plans. MoneyHelper also offers free, impartial guidance on mortgages and borrowing. We do not provide financial advice.
Frequently asked questions
How does a payment-term lifetime mortgage differ from remortgaging before 55?
Both involve monthly payments, and missing them could put your home at risk. A payment-term lifetime mortgage is a form of equity release: on plans from Equity Release Council members, core protections such as the no negative equity guarantee continue while you keep up the payments. A remortgage is a standard mortgage with a fixed term, so the loan must be repaid or refinanced when the term ends.
If my partner is over 55 and I am not, can we take out equity release?
On a joint lifetime mortgage, both borrowers normally need to meet the minimum age, so the younger partner's age usually decides eligibility. A plan in only the older partner's name can leave the younger partner without a right to stay in the home later. Our guide to joint equity release explains what can happen to the survivor.
Can I remortgage to release equity if I am under 55?
It may be possible, if a lender accepts your income, your age at the end of the term and your property. A remortgage, or a further advance from your current lender, is a standard mortgage rather than equity release. You make monthly payments and the lender checks affordability, so it means a regular payment to keep up, and missing payments could put your home at risk.
Why do lenders set 55 as the minimum age for equity release?
A lifetime mortgage has no fixed end date and is repaid when the last borrower dies or moves into long-term care. The younger you are, the longer the loan is expected to run, so interest has longer to build up. Lenders manage this by setting a minimum age and by lending a smaller share of your home's value to younger borrowers.
Is downsizing an alternative to equity release under 55?
Downsizing has no minimum age, because it means selling your home and buying a cheaper one. It can release money without borrowing and without monthly payments. The trade-offs are moving costs, such as legal fees, removals and any stamp duty on the new home, and the upheaval of leaving. Our guide to downsizing sets out what is involved.
