Equity release: 10 practical tips
25 April 2025
As a financial adviser starting to explore equity release, it’s important to understand both the technical and emotional aspects of this later life lending solution. Whether you’re considering becoming qualified or simply want to support clients more holistically, these ten tips will help you get to grips with the fundamentals.
1. Start with suitability - is equity release the right option?
Equity release isn’t always the best or only answer. Clients may be eligible for means-tested benefits, able to downsize, or consider other solutions like retirement interest-only mortgages. As an adviser, it’s crucial to explore all avenues before recommending a lifetime mortgage or home reversion plan.
2. Understand the client’s financial picture
Take time to fully assess the client’s income, outgoings, and long-term needs. Equity release should be considered in the context of sustainable retirement planning, not just short-term cash flow needs.
3. Address any existing mortgages or debts
Many clients consider equity release to repay an outstanding mortgage. It’s important to liaise with their current lender to understand redemption penalties, early repayment charges, or alternative options before recommending equity release.
4. Know what grants may be available
Clients sometimes want to use equity release funds for home improvements. Encourage them to check with their local authority for grants or financial assistance first. Reducing the need for borrowing may be in their best interest.
5. Encourage open family conversations
Family dynamics can have a major impact on later life financial planning. Advisers should recommend clients involve family early, particularly where inheritance, care planning, or joint ownership is involved.
6. Use reliable, independent resources
The Equity Release Council and MoneyHelper offer excellent impartial information. As you familiarise yourself with the market, these resources are a solid foundation to understand the regulatory landscape and product variations.
7. Work with an equity release qualified adviser
If you’re not yet qualified in equity release, consider working alongside or referring to a specialist adviser who is a member of the Equity Release Council. This ensures your clients receive regulated advice that meets industry standards.
8. Independent legal advice is non-negotiable
Clients must receive independent legal advice before proceeding with equity release. It’s not just a compliance box to tick - it’s essential for helping them understand the long-term legal and financial implications.
9. Understand the product types
There are two main types of equity release: lifetime mortgages (the most common) and home reversion plans. Each has different features, risks, and suitability criteria. Take time to understand how each works, including interest roll-up, repayment options, and inheritance protection.
10. Know the key features and flexibilities
Modern equity release products offer features such as voluntary payments, downsizing protection, or fixed early repayment charges. Understanding these options helps tailor advice to the client’s priorities - whether that’s protecting inheritance or retaining flexibility.
In conclusion, equity release is a specialist area that requires both technical competence and strong interpersonal skills. For advisers new to the market, developing your knowledge step by step, from client fact-finding to understanding regulatory standards, is key to offering safe and suitable advice.
By staying client-centric, exploring all alternatives, and leaning on expert partners where needed, you’ll be well positioned to help clients make confident decisions about their financial future.
