Equity release is becoming more common among homeowners aged 55 and over in Hull. For those who have built up value in their property and want to make use of it, it can offer a way to access tax-free cash without needing to move. Still, it’s natural to have questions about how safe it is and what the long-term impact might be.

There’s a lot of outdated or misleading information out there, which can make equity release feel more risky than it actually is.

As a mortgage broker in Hull we speak to people every day who want to understand the facts before making any big decisions. Here we’ll explain how equity release works, what the pros and cons are, and how to decide whether it’s the right choice for you.

What is the Catch with Equity Release?

The phrase “equity release” often brings up images of high fees, loss of control, or leaving less behind for loved ones.

In truth, much of that perception comes from how equity release products were structured decades ago. Today, things are very different. Modern plans are regulated, far more flexible, and include safeguards to protect your property and your family’s inheritance.

That said, equity release isn’t right for everyone. It’s still a significant financial decision, and it’s important to understand how it works.

Equity release allows you to unlock some of the money tied up in your home, either through a lump sum, a drawdown facility, or a combination of both. You retain full ownership of your property, and the loan is usually repaid through the sale of the home when you pass away or move into long-term care.

The catch, if there is one, is that the amount you owe grows over time if no repayments are made. Since most plans are interest roll-up, the total debt increases year after year, which may reduce the value of your estate.

The other consideration is flexibility. Lifetime mortgages are long-term commitments. These are not hidden catches, but important facts that should be part of every equity release conversation. That’s why speaking with a trusted, experienced mortgage advisor in Hull matters.

The Pros of Equity Release

When used for the right reasons, equity release can offer genuine benefits for homeowners who want to make the most of their retirement years. Here are some of the advantages.

Access Money Without Selling Your Home

Equity release allows you to stay in your home and unlock a portion of its value. You can use the funds however you choose, whether that’s making improvements, clearing debts, supporting family, or simply enjoying retirement with more financial comfort.

No Monthly Repayments Required

Most plans don’t require monthly payments. This can be helpful if you’re on a fixed income or don’t want to add new monthly commitments. Some plans do allow voluntary payments, which can reduce the final amount owed.

You Stay the Legal Owner

With a lifetime mortgage, which is the most common form of equity release, you remain the legal owner of the home. You continue to live there for as long as you choose.

Regulated and Protected

Modern equity release products are regulated by the Financial Conduct Authority (FCA). Products that follow Equity Release Council standards also include a no negative equity guarantee, meaning you’ll never owe more than the value of your home.

Breaking the Stigma Around Equity Release

Equity release used to carry a negative reputation. Older products from years ago weren’t well-regulated, and some people were left in difficult situations as a result.

That stigma still exists for some, but the reality today is very different. Equity release has moved on. It’s now properly regulated, more flexible, and designed to work in the homeowner’s best interest. With clear advice, the risks can be managed and fully understood before anything is agreed.

We’ve helped many homeowners in Hull who were originally sceptical, but found that the modern options gave them the financial freedom they were looking for all while keeping control of their home.

Is Equity Release a Good Idea?

Equity release can be a good option, but it depends entirely on your personal circumstances. It works best for people who want to release funds without moving house, don’t need to pass on the full value of the property, and have no outstanding mortgage, or one that can be paid off using the funds released.

That said, it’s not always the best solution. There may be other products worth looking at first, such as retirement interest-only mortgages, standard remortgages, or secured loans.

We’ll help you explore every option before equity release is even considered. If another product works better for your goals, we’ll explain how it compares and why it may be more suitable.

What Else Should Be Considered?

Before going ahead with equity release, there are a few important factors to think about. These points often come up in conversations with our customers in Hull.

The Impact on Inheritance

Taking equity out of your home will reduce the value of your estate. It doesn’t mean there will be nothing left to pass on, but it’s important to understand how it affects what your family may inherit. Some products offer protection features that allow you to ringfence a portion of the home’s value.

Benefits and Entitlements

Receiving a lump sum or regular withdrawals from your home can affect means-tested benefits. This depends on how the money is used and how much is left in your account. We’ll look at your current benefits and explain what may or may not be affected.

Set-Up Costs and Charges

There are fees involved in setting up an equity release plan, including legal work, advice, and valuation costs. These are usually taken from the released amount, but it’s important to factor them in when deciding if it’s the right choice.

Speak to a Specialist

Equity release is not a decision to make lightly. It can have long-term financial effects, and it’s essential to get the right advice before moving forward. At Hullmoneyman, our equity release advisors specialise in helping homeowners aged 55 and over understand the full picture.

We’ll explain your options clearly, including alternatives, so you’re never rushed or pushed into anything. If equity release does make sense for you, we’ll help you find a product that’s fully regulated, protected, and structured to suit your needs and plans for the future.

Date Last Edited: 10/28/2025