Why you need equity release advice
Last updated 30th July 2025
4 min read
Equity release can be a great option to get extra cash later in life. Many people use it to make retirement more comfortable or to pay for home improvements.
By accessing the funds tied up in your home, you can put this valuable equity to use during your lifetime, instead of simply leaving it as part of your estate. However, there’s a lot to consider when deciding whether equity release is right for you.
You’ll want to think about the pros and cons, the types of equity release available, and whether an alternative solution may be better for you.
Before considering equity release, it’s important to get professional advice from an adviser who's a member of the Equity Release Council (ERC). They can help you decide if equity release is right for you, suggest the best plan and provider, and even help you with your application.
This guide aims to show you why it’s so important to seek out professional equity release advice before applying.
Equity release is a big decision
Like any other type of loan, equity release should be carefully considered. Your home is a valuable asset, so it's important to make sure you're getting the best value.
Equity release can be considered a safer choice when compared to other finance options, as it allows you to stay in your own home. Most schemes also guarantee that you’ll never owe more than the value of your home.
Although equity release plans are well regulated, not all of them offer the same benefits. Some may not be good value for money depending on your circumstances, and you could lose out financially if you don't fully understand the chosen plan.
There are lots of different types of equity release
There are two main types of equity release: lifetime mortgage or home reversion. However, both types also offer a variety of options that are tailored to your circumstances.
Our guide to the different types of equity release is a good resource for obtaining a basic understanding of the options available. However, professional advice is essential. This will help to ensure that you avoid any pitfalls.
Weighing up equity release as an option
Let’s look at what can make equity release an attractive option, as well as the reasons why it might not be right for you.
Benefits
Some of the benefits of equity release include:
- Ability to obtain tax-free cash to spend however you like
- Staying in your own home
- No monthly repayments (unless you want to)
- You'll never owe more than the value of your home
- Option to receive a lump sum or regular payments
- Can help reduce the value of your estate to assist with Inheritance Tax planning
Drawbacks
Some of the drawbacks of equity release include:
- The loan is increased by compound interest
- Equity release can affect any means-tested state benefits
- You may be subject to early exit fees
- Reduces the value of your estate
- Costs associated with setup fees and professional advice
- You may not be able to take out another loan against your home
We’ve put together a guide to the pros and cons of equity release, which covers these topics in more detail.
Independent equity release advice
You should always seek expert professional advice, to assess your circumstances and advise you on the best course of action. While this is often a paid service, it’s well worth the investment as it can save you money in the long term, and offers the peace of mind that you are making an informed and considered financial decision.
When you speak to an adviser, you’ll need to share detailed information about your circumstances, goals and financial situation to make sure that the advice fits your needs. Ask as many questions as you need to make sure you fully understand the risks and obligations of equity release before choosing a plan.
Choosing an equity release adviser
Equity release is a specialist area of finance, so it’s best to speak to an expert adviser. Choosing an ERC member adviser(www.equityreleasecouncil.com opens in a new tab) means you'll get advice which follows the council's rules and standards.
To protect customer interests and give them peace of mind, ERC member advisers will suggest the best option for your needs – even if that means alternatives to equity release.
Because it’s a long-term contract, it’s also a good idea to get independent legal advice from a solicitor who can help you understand the risks and benefits of equity release.
An ERC member solicitor(www.equityreleasecouncil.com opens in a new tab) could be the best option. They are experienced in legal matters relating to equity release, and are required to follow the Council rules and standards to make sure you receive impartial advice.
Next steps
The information in this article is provided for general guidance only and is not offering financial advice.
If you want to know more about equity release, here are some other articles that our customers found helpful:
Visit our equity release page to learn more about releasing equity with SunLife and work out how much money you could access.
The thoughts and opinions expressed in the page are those of the authors, intended to be informative, and do not necessarily reflect the official policy or position of SunLife. See our Terms of Use for more info.