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Equity Release has evolved considerably in the UK. Once viewed with suspicion, it’s now recognised as a flexible, regulated tool for later-life financial planning thanks to improved products, robust regulation, and changing attitudes among financial experts, the media, and the public.
| Martin Lewis, one of the UK’s most trusted voices on consumer finance (src High Performance Podcast), now acknowledges that Equity Release can be a helpful solution for some homeowners, especially when quality of life in retirement is the priority. He urges careful consideration, expert advice, and the use of only trusted, Equity Release Council (ERC)-approved providers. He also urges consideration of other options, such as downsizing or remortgaging. |
“Martin Lewis has become one of the most trusted figures in Britain,
not by being popular, but by being useful”
High performance podcast (September 2025)
Here’s how the Equity Release transformation happened…
From negative headlines to mainstream acceptance: A brief history
The era of caution (2000–2015)
In the early 2000s, Equity Release was often seen as a “last resort” for cash-strapped retirees. The press highlighted:
- Complex, risky products: Early home reversion plans and shared appreciation mortgages were poorly understood and sometimes left homeowners with little equity.
- Lack of regulation: Before 2004, the market was largely unregulated, leading to mis-selling and negative consumer experiences.
- Negative press: Media stories focused on pensioners losing their homes or leaving no inheritance, reinforcing a sense of risk and mistrust.
- Consumer complaints: The Financial Ombudsman Service saw a rise in complaints about mis-selling and inadequate advice.
- Regulatory warnings: Both the FSA and consumer groups like Which? issued repeated warnings about the risks and lack of safeguards in early Equity Release products.
Key takeaway:
Equity Release’s poor reputation was rooted in the complexity of the products, regulatory gaps, and high-profile scandals. These reinforced the need for regulated financial advice and robust legal oversight.
The positive shift: 2016 to the present day
What changed?
- Stronger regulation and industry standards: The Equity Release Council (ERC) introduced tough standards, including the No Negative Equity Guarantee (meaning you’ll never owe more than your home is worth) and mandatory independent legal advice. The Financial Conduct Authority (FCA) enhanced consumer protections, requiring thorough advice and ongoing market supervision.
- Product innovation: Modern Equity Release products now offer flexible features, including optional interest payments, partial repayments, and drawdown facilities (where you can access money in stages rather than all at once). Products are tailored for a wider range of clients, including younger retirees and those still working.
- Professional advice and transparency: Regulated advice is now mandatory, ensuring that clients understand all implications. Legal processes are clearer, with specialist conveyancers like Tivoli Legal guiding clients through every step.
- Positive media and expert endorsements: The press now highlights Equity Release as a strategic financial planning tool rather than a last resort. Financial experts, including Martin Lewis, have adopted a more balanced, cautious approach.
- Market growth and mainstream use: Lending in the ER market grew by 10% in 2025, driven by a younger, more diverse customer base. Most clients use ER to achieve multiple goals, such as paying off debt, funding home improvements, or supporting family.
Key takeaway:
Equity Release has evolved into a safer, more flexible, and mainstream financial option for homeowners underpinned by stronger regulation and innovative products.
Martin Lewis’s latest advice on Equity Release
Martin Lewis’s perspective on Equity Release has evolved alongside the market. He now recognises that, for some homeowners, Equity Release can be a sensible option, as long as it’s approached with care, expert guidance, and the right protections in place, but it isn’t the right choice for everyone.
Martin Lewis’s key recommendations
- Choose Equity Release Council (ERC) approved providers (organisations that meet strict standards for consumer protection): This ensures important legal protections, such as the No Negative Equity Guarantee.
- Seek professional advice: Always seek professional legal and financial advice and make sure you fully understand the implications.
- Consider alternatives first: Explore options like downsizing or remortgaging before committing to Equity Release.
- Only borrow what you need: Take out funds as and when you need them, rather than a lump sum.
Martin Lewis’s key warnings
- Interest rates and compound interest: Current rates (5.5%–7%) mean the amount you owe can grow quickly if you’re not making repayments.
- Reduced estate value: Equity Release will lower the value of your estate, which can affect the inheritance you leave behind.
- While Martin Lewis highlights the impact on inheritance, some financial experts at Equity Release Supermarket note that Equity Release can also be used strategically for inheritance tax (IHT) planning. As one inheritance tax specialist explains:
“One of the key benefits of Equity Release for IHT planning is that it can help to reduce the size of your estate. By borrowing against your home, you can access funds for living expenses, care costs, or even make gifts to your heirs; potentially reducing the amount of IHT due when you die.”
- Martin Lewis encourages a “Live first, inherit second” approach, prioritising your quality of life in retirement over maximising inheritance. He stresses that Equity Release should generally be a last resort, but acknowledges its value when used thoughtfully and with the right advice.
At Tivoli Legal, we echo Martin Lewis’s outlook. We believe that Equity Release isn’t right for everyone, but with specialist financial advice, it can be a safe and positive choice for some homeowners. Our role, after your product is in place, is to ensure the legal process is robust, transparent, and always in your best interests.
Why specialist Equity Release conveyancing matters
As Equity Release becomes a more viable financial planning tool, the legal process is critical to safeguarding clients’ interests. Key legal protections, such as the No Negative Equity Guarantee and clear title, are only as strong as the conveyancing behind them.
Tivoli Legal’s specialist focus ensures that every Equity Release transaction is handled with the care, attention, and regulatory compliance it deserves.
Our role at Tivoli Legal
If you are considering Equity Release, you will need to consult a qualified financial adviser before we can help. We don’t provide financial advice. Our expertise lies in the legal side of Equity Release conveyancing, ensuring every transaction is:
- Compliant: We work exclusively with ERC-approved providers, ensuring all legal protections are in place.
- Transparent: Our process is clear, with regular updates for both advisers and clients.
- Meticulous: We specialise in complex cases, including issues with property documents and non-standard properties.
- Collaborative: We partner with Financial Advisers to deliver a seamless, client-focused experience.
- Streamlined: Transactions are streamlined with our user-friendly app. And we have multiple examples of happy clients who were impressed by the speed of processing their case and receiving their funds.
“I can thoroughly recommend Tivoli Solicitors, they are not like most Solicitors that leave things to the last minute, Tivoli were on the ball from the get-go and even came round my house to witness the signing of documents and deliver them the same day. It was with their help that I had my equity release mortgage completed in less than 2 months [from first meeting my financial adviser]. I am very happy with the service and will use them again.” – KB
The journey of Equity Release from a product of last resort to a respected financial planning tool is a testament to industry reform, regulatory improvements, and changing public attitudes. Martin Lewis’ endorsement reflects this new reality, in which Equity Release, when used wisely and with the right legal safeguards, can enhance later-life financial well-being.
“What a team! I cannot praise Tivoli enough; they are outstanding. Whether is was contact by phone or by email, Tivoli gave regular updates and answered questions. The whole process was delivered in a highly professional but friendly manner, no hiccups, no waffle just pure legal advice. I wholeheartedly recommend these brilliant professionals to anyone seeking Equity Release, they are the best. Thank you all for making a daunting process completely pain free.” – M.M. Equity Release client
FAQs: Your Equity Release conveyancing questions answered
What legal protections are in place for Equity Release clients today?
All ERC-approved products include the No Negative Equity Guarantee and require independent legal advice, ensuring clients never owe more than their property’s value.
How does Tivoli Legal support Financial Advisers in Equity Release cases?
We manage all legal aspects of the Equity Release conveyancing process (the legal process of transferring property ownership), working closely with Financial Advisers to ensure transactions are smooth, compliant, and efficient. Our specialist solicitors provide clear, proactive communication and are quick to identify and resolve complex conveyancing issues. Our priority is helping advisers deliver a seamless experience for their clients.
Why is it important to use an ERC-approved provider?
ERC-approved providers must meet strict standards for consumer protection, transparency, and product flexibility, reducing risk for clients.
What are the main risks clients should be aware of with Equity Release?
Key risks include compound interest, reduced estate value, and potential impact on means-tested benefits (such as Pension Credit or Council Tax Support). Specialist legal advice helps clients understand and mitigate these risks.