Alternatives to Equity Release

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Alternatives to Equity Release: Understanding the Options

The equity release is a very common financial product in the UK. It allows people to take out loans from their house and then repay them with interest over time. Unfortunately, the interest rates on these loans are usually quite high, so you must understand all of your options before you decide which one is right for you. This article will explore some alternatives to the conventional equity release, which have lower interest rates and more flexibility!

Selling Your Assets

This is one of the first steps to consider if you need to raise money quickly. Simple assets, such as jewellery or watches, are easy and quick ways to generate extra cash in a hurry (and there’s no risk involved!). But larger items – like artwork or furniture – require more time for evaluation and negotiation. And with antiques, it’s important to make sure they’re not stolen!

Suppose you have a larger property than your immediate needs. In that case, it may be worth selling it and then taking out an equity release with the proceeds. You can use this to draw down any debts you may have, and the equity release plan will give you some leeway to cover living expenses.

And if you’re in a position where retirement is looming, but your pension pot isn’t big enough, it might be worth considering selling up all of your assets. Then, you’ll get plenty of money upfront for new financial commitments – such as investments or helping out family members – without having to worry about waiting until age 75 before getting access again!


A remortgage is a great way to unlock the equity in your property and use it for other things. For example, if you’re going through a divorce, remortgaging is often one of the easiest ways to split up assets; if somebody dies without leaving a will, or there’s been some sort of inheritance dispute with family members, this can be a way to settle debts.

The repayment rate on any new loan secured against your house isn’t usually too high (it depends on how much you borrow), so don’t worry about having more debt than before! You’ll likely get better interest rates as well, as most mortgage lenders offer preferential borrowing conditions to people that are older and more established.

You can also remortgage to make a one-off purchase, such as for the deposit on that new car you’ve been eyeing or maybe even take your partner away with you on holiday this year!

Finally, suppose you’re looking into making some major home improvements and are worried about how high the repayments might be in future years. In that case, refinancing could offer an alternative – but it will probably mean more interest payments over time.

You Can Lean on Family or Friends

Taking money from family or friends might be a way to get your finances back on track, as giving them the equity in their home can help you make repayments.

This, of course, is not without its risks – if they were hoping for some inheritance, then this could put a stop to that! But if they’re happy with the equity offering in their home, then it could be a way to get your finances back on track.

Suppose you’re worried about how this will affect family relationships. In that case, it’s worth talking things over with them first and seeing what they think – after all, if they do agree to give up some of their inheritance for you, then that would show just how much they care!

Get a Grant

If you’re looking for a way to borrow money but don’t want the hassle of equity release, then grants might be an option.

They come in all shapes and sizes, so do some research to see what’s out there – it’ll help you work out which ones are right for your needs.

For example, if you need funds urgently because your roof has leaked or something similar, then grants that offer quick loans can be worth applying for!

But remember when you fill in these forms that they often have conditions attached – like agreeing not to spend any more than £500 on credit cards every month! The advice above will provide helpful tips about grants and how to get the best out of your money.

Grants are a good option when you need funds urgently because your roof has leaked or something similar, but remember that they often have conditions attached, like agreeing not to spend any more than £500 on credit cards every month! The advice above will provide helpful tips about grants and how to get the best out of your money.

You Can Move to a New Home

The first step is to research the different types of equity release schemes available and then look at which one might work best for you. Next, you need to decide if it’s worth moving to a new home – you might be able to release some equity in your current property and use it as a part monthly payment for the house of your dreams.

The best option is always one that will provide peace of mind tomorrow, not just today. However, if you want certainty about what happens when things change, then using equity release could help.


This could be the right option if you have more than one property and want to release equity from your larger home.

It’s a good idea to speak with an independent financial adviser as they can assist you with your decision. The equity release adviser can talk through the different options and help work out what will work best for you.

Downsizing might not be an option if: – Your property has a standard mortgage on it, or is leasehold rather than freehold., or- You don’t have enough savings to cover your living expenses when retired., or- If one of your additional properties is rented out, then this could reduce any equity release figure by 40%.

Other Costs You Should Think About

There are other costs you should think about before deciding on any form of equity release.

These include:

  • The cost to the government for people who have equity release, which is currently 25%., or
  • The cost of your funeral and inheritance tax if you don’t specify a beneficiary in advance., or
  • Costs such as hospital fees that your equity release provider might not cover.

If you’re still considering equity release, be sure to consult a financial adviser before making any decision.

Claim State Benefits

Claim State Benefits: You might be able to get help with your living costs by claiming state benefits or other public funds. This may include Pension Credit, income-based Jobseeker’s Allowance, Employment and Support Allowance or Universal Credit. You’ll need to check with the relevant government department to find out what you’re entitled to and how much help you can get.

Renting Out Part of Your House

Renting Out Part Of Your House: You might be able to get a regular income from renting out part of your house. This could provide you with an alternative to taking equity release or supplement the money received through it. The rental payments will need to cover any costs and mortgage repayments on the property that’s being rented out, as well as your living expenses.

Suppose you’re a homeowner and are struggling. In that case, it might be worth considering taking equity release to buy the type of property that will let you take in paying tenants. Alternatively, if there’s enough space at your home for accommodation and work, consider opening an office from home or renting a small commercial unit.

You should also think about whether it would make sense to rent out part of your garden on Airbnb through our other ways for getting extra money – with this option being popular among homeowners who live in rural areas where properties can stay empty for long periods while waiting to sell.


If you’re struggling to make ends meet, it’s worth considering different ways of budgeting and saving your money. Here are a few ideas on how you can do that:

  • Saving by getting cashback through our other ways of earning extra is popular with people who use their credit cards abroad or online because they can get money back from the purchase.
  • Saving by reducing your spending on essentials like food – this is popular with people who have cut down their calorie intake to lose weight and those trying to cut down debt because it’s cheaper than paying interest.
  • Save for a rainy day fund that you can tap into when dealing with emergencies.
  • Save for a goal – this can be something like saving up enough money for your child’s education or saving up so that you can buy some new clothes next season.

If none of these seems quite right, it could also pay to look at an alternative option that might give more flexibility and solution than what equity release offers.

Changing Your Employment

One option is to change your employment status and work for yourself. Then, when you can become self-employed, you will not have a boss telling you when to come in or go home because the hours of operation are determined by you and the income from any signed contracts.

This could be an attractive alternative if equity release seems like too big a commitment, but there’s still pressure on people who are nearing retirement age, such as those who need money for their children’s education.

Another way of changing one’s employment status would be to find another employer with more flexibility concerning time, which may lead them to offer some sort of gradual retirement program.

You Don’t Have to Do Anything

Another alternative to equity release is not doing anything and just living off of what you have. This option would work best for those who are really into the idea of retiring but don’t want to give up any luxuries or the well-established lifestyle that they had before retirement. They could simply wait until they need money, then take out an equity loan and pay it back with interest later on down the line. However, this might be too risky as there’s no guarantee that your savings will last long enough, so make sure you keep some kind of record to track how much cash flow was coming in versus going out each month.

You can learn more about what costs to expect should you consider equity release. Try our Equity Release Calculator.


Another option is to take out a pension. This would be the best alternative for couples who want to retire at different times and still live off their savings. They could get as much as they need from it and pay it back every month, just like taking equity release. However, there are drawbacks in this plan, too, such as not being able to borrow more than 50% of the value of your pension, which might mean that you won’t be able to buy a house or move up into another property with enough land space for gardening without resorting to other options first – though this does depend on where you’re living right now so do check what limits apply before making any big decisions.

Common Questions

What Is the Best Alternative to Equity Release?

There are a few options that might work as an alternative to the equity release scheme. One of the most popular is Care Home Mortgage plans, which let you sell your home for up to 50% and still live in it without paying rent or fees. Another option is continuing to stay where you currently are but renting out some rooms on Airbnb, such as our property with just under half of the bedrooms available at any one time – this can be great not only because it brings in more money than we could have expected but also because there’s always room for guests.

Can You Borrow More Than 50% Of Your Pension Value With This Plan?

No, with this plan, you can’t borrow more than 50% of your pension value. However, there are drawbacks in this plan, too, such as not being able to buy a house or move up into another property with enough land space for gardening without resorting to other options first – though this does depend on where you’re living right now so do check what limits apply before making any big decisions.

What Is the Difference Between Equity Release and an Alternative?

When compared against each other, the main differences include affordability (you’ll be looking at roughly £100 per month if it’s done through Equity Release loans, but much less if using alternatives) and eligibility requirements a lump sum or regular income for retirement.

Should I Use an Alternative Plan to Equity Release?

Doing this will require a lot of research and planning, so it’s worth giving your current situation some serious consideration before making any decisions.
If you are not sure how to discuss these discussions with your family or carers, please contact the Equity Release Council, which can provide free information on all aspects, from eligibility requirements to potential risks and benefits.

In Conclusion

Instead of selling their home to buy a lower-priced property, many retirees are choosing equity release. Equity releases allow them to use the value of their homes as collateral for personal loans they need without having to sell up and move elsewhere. This is an excellent alternative if you’re considering retirement shortly and want some freedom with your finances.

Have any questions?

Please get in touch, and our experts will be happy to help!

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