Why consider alternatives first
Equity release is a long-term commitment with rolled-up interest that reduces your estate, so it's wise to weigh alternatives before committing. The best alternative depends on your income, how much you need, and whether you're willing to move. A good adviser will explore these with you.
1. Downsizing
Selling and moving to a smaller or cheaper home frees up equity outright, with no interest and no debt. Best for those open to moving — it can release more, cost-free, than equity release. The trade-offs are moving costs and leaving your current home.
2. Retirement interest-only (RIO) mortgage
You borrow against your home and pay only the interest monthly, so the debt doesn't grow. Best for those with enough income to cover interest who want to preserve more of their estate than rolled-up equity release would.
3. Using savings or investments
Drawing on savings, ISAs or pension flexibility may meet your need without borrowing against your home at all. Best when you have accessible assets — usually cheaper than any form of secured lending.
4. A standard later-life mortgage
Many lenders now lend into retirement on a normal repayment basis if you have sufficient income. Best for those still earning or with strong pension income who can make full repayments.
5. Help from family or grants
Family gifts or loans, or grants and benefits you may be entitled to, can reduce or remove the need to release equity. A benefits check via Turn2us is worthwhile.
When equity release may still be best
If you don't want to move, lack income for monthly payments, and have limited savings, equity release may genuinely be the right answer — see our best equity release options guide. The point is to choose it with the alternatives fully considered.
How to weigh up your options
A qualified, whole-of-market adviser can compare equity release against all these alternatives impartially. Find an equity release adviser through Nesto — free, no obligation.
Frequently asked questions
Is downsizing better than equity release?
Often, financially — it frees equity with no interest or debt. But it means moving, which not everyone wants.
What's a RIO mortgage?
A retirement interest-only mortgage where you pay the interest monthly so the debt doesn't grow, repaid when you die, sell or move into care.
Can I get a normal mortgage in retirement?
Yes — many lenders lend into retirement on a repayment basis if you have enough income.
Should I use savings instead of releasing equity?
Usually yes, if you have accessible savings — it avoids interest and preserves your home's value.
How do I know which option is right?
Take impartial, qualified advice. A good adviser will compare all options, not just equity release.