Releasing equity: more than one route
"Releasing equity" simply means accessing the value tied up in your home. The best method depends on your age, income and how much you need — younger homeowners with income have very different options to over-55s who want no monthly payments.
1. Remortgaging to release equity
Switch to a new, larger mortgage and take the difference as cash. Usually the cheapest way to release equity if you qualify on income and age. Best for working-age homeowners with affordability and a decent chunk of equity.
2. Further advance from your current lender
Borrow more from your existing mortgage lender without remortgaging — useful if you're locked into a good rate or face early repayment charges. Best for those who don't want to disturb their current mortgage deal.
3. Secured (second-charge) loan
A separate loan secured against your home, sitting behind your mortgage. Best when you want to keep your existing mortgage untouched but need a lump sum — see our best secured loans guide.
4. Retirement interest-only (RIO) mortgage
For older homeowners with income, a RIO lets you release equity and pay only the interest, so the debt doesn't grow. Best for over-55s who want low monthly payments and to preserve their estate.
5. Equity release (lifetime mortgage)
For over-55s wanting no monthly payments, a lifetime mortgage releases tax-free cash with interest rolling up, repaid from your estate. Best when income is limited and you don't want to move — see our equity release options guide.
Which is best for you?
- Working age, good income: remortgage or further advance
- Want to keep your current mortgage: second-charge secured loan
- Over 55, income to pay interest: RIO mortgage
- Over 55, no monthly payments wanted: equity release
How to find the best route
Because the options span mortgages, secured loans and equity release, impartial whole-of-market advice helps you pick the cheapest suitable route. Find an adviser through Nesto — free, no obligation.
Frequently asked questions
What's the cheapest way to release equity?
For those who qualify, remortgaging or a further advance is usually cheapest. Equity release costs more over time due to rolled-up interest but needs no monthly payments.
Can I release equity if I'm still working?
Yes — remortgaging, a further advance or a secured loan all work for working-age homeowners with affordability.
Do I have to be over 55 to release equity?
Only for equity release/lifetime mortgages. Remortgaging, further advances and secured loans have no such minimum.
Will releasing equity affect my mortgage rate?
Remortgaging replaces your deal; a further advance or second-charge loan leaves your existing rate intact.
How much equity can I release?
It depends on your home's value, existing mortgage, income and (for equity release) age. An adviser can give you figures.