Equity release attracts more myths than almost any other later-life money decision, and the wrong belief can stop someone exploring an option that suits them, or push someone into one that does not. Each claim below is set out as myth, verdict and evidence, checked against Equity Release Council standards.
The bank owns your home
False
With a lifetime mortgage, the most common form of equity release, you keep ownership of your home. The lender holds a charge over the property, in the same way a normal mortgage does, but you remain the legal owner and have the right to live there for life under Equity Release Council standards.
You can owe more than your home is worth
False
Plans that meet Equity Release Council standards carry a no negative equity guarantee. This means that when the home is sold, neither you nor your estate can ever owe more than the property sells for, even if the loan plus rolled-up interest has grown larger than the sale price.
You cannot move house
False
Equity Release Council plans are portable. You have the right to move to another suitable property and take the plan with you, subject to the new property meeting the lender criteria. So moving home is allowed, not blocked, although the new property must qualify.
Equity release is always a last resort
Misleading
For some people equity release is the wrong choice, and alternatives such as downsizing, savings or a retirement interest-only mortgage may be better. But it is not by definition a last resort. It is one regulated later-life option among several, and whether it is right depends entirely on individual circumstances and proper advice.
You cannot make any repayments
False
Many modern plans allow voluntary repayments, often up to a set percentage of the balance each year with no early repayment charge. Making these payments can slow or stop interest rolling up, which reduces the total cost and protects more of the value left in the home.
| Myth | Verdict | Evidence |
|---|---|---|
| The bank owns your home | False | With a lifetime mortgage, the most common form of equity release, you keep ownership of your home. The lender holds a charge over the property, in the same way a normal mortgage does, but you remain the legal owner and have the right to live there for life under Equity Release Council standards. |
| You can owe more than your home is worth | False | Plans that meet Equity Release Council standards carry a no negative equity guarantee. This means that when the home is sold, neither you nor your estate can ever owe more than the property sells for, even if the loan plus rolled-up interest has grown larger than the sale price. |
| You cannot move house | False | Equity Release Council plans are portable. You have the right to move to another suitable property and take the plan with you, subject to the new property meeting the lender criteria. So moving home is allowed, not blocked, although the new property must qualify. |
| Equity release is always a last resort | Misleading | For some people equity release is the wrong choice, and alternatives such as downsizing, savings or a retirement interest-only mortgage may be better. But it is not by definition a last resort. It is one regulated later-life option among several, and whether it is right depends entirely on individual circumstances and proper advice. |
| You cannot make any repayments | False | Many modern plans allow voluntary repayments, often up to a set percentage of the balance each year with no early repayment charge. Making these payments can slow or stop interest rolling up, which reduces the total cost and protects more of the value left in the home. |
Each verdict is assessed against the published standards of the Equity Release Council, the trade body that sets the consumer safeguards for equity release in the UK, including the no negative equity guarantee, the right to remain in your home for life, the right to move to another suitable property, and the requirement for independent legal advice. These protections apply to plans that meet Council standards, which cover the large majority of the market. They may not apply to a plan that is not from a Council member, which is one more reason to check membership before proceeding. Verdicts reflect the position as at June 2026.