By James Evans, Director, TouchPoint Mortgages.
If you’re over 55 and own your home — especially mortgage-free or with lots of equity — you might have come across the term equity release.
But what does it actually mean? How does it work? And is it right for you?
In this guide, we explain the basics of equity release, common uses, and who it may be suitable for. Please note: TouchPoint Mortgages does not offer equity release advice directly — we refer clients to a trusted, regulated third-party specialist.
Equity release is a way for older homeowners to unlock some of the money tied up in their property without having to move. It allows you to release a lump sum or take smaller amounts over time, using your home’s value as security.
It’s typically available to homeowners aged 55 or over.
There are two main types:
You borrow money secured against your home
You retain ownership
Interest rolls up over time or can be paid monthly
The loan is repaid when you die or move into long-term care
You sell a portion (or all) of your home to a provider
You live there rent-free for life
You’ll usually receive less than full market value for the sold share
🔒 Both options are regulated by the Financial Conduct Authority (FCA)
Equity release can help fund:
Home improvements
Gifting to children (e.g. helping them buy a home)
Paying off existing debts
Supplementing retirement income
Travel or lifestyle costs in later life
Equity release reduces the value of your estate and may affect your entitlement to means-tested benefits. It’s also a long-term commitment — that’s why it’s essential to get specialist advice.
❗ TouchPoint Mortgages does not offer advice on equity release directly.
We will refer you to a qualified and regulated equity release advisor for detailed, independent guidance.
Some clients consider releasing equity, but others might benefit more from simply downsizing to a smaller property. That’s something we can help with through our Homemovers service.
If you’re considering selling your current home and moving somewhere smaller or more manageable, speak to a local mortgage advisor in Littlehampton or Rustington.
It depends on:
Your age and health
Your income and lifestyle goals
Whether you want to leave an inheritance
What other options are available (downsizing, remortgaging, etc.)
That’s why professional advice is essential.
Equity release can be a helpful financial tool for some — but it’s not right for everyone. Understanding the risks, costs, and alternatives is key.
At TouchPoint Mortgages, we don’t provide equity release advice directly, but we work closely with a trusted, FCA-regulated specialist who can guide you through your options.
🛑 Disclaimer: TouchPoint Mortgages does not provide equity release advice. We refer this to a qualified third-party equity release advisor regulated by the Financial Conduct Authority.
👉 Want to explore your homemoving options instead? Visit our Homemovers page
👉 Thinking about passing on wealth to family? We also work with trusted partners to help set up Wills and protection planning.
👉 Already own a home? You may find our post on remortgaging or porting your mortgage helpful too.
Send your message and we will be in touch, alternatively you can book an appointment to chat to one of our team.
