Equity Release Explained: What Mortgage Advisers Need to Know

As a mortgage adviser, your core focus has traditionally been on helping clients secure financing for their property purchases. But what about clients who are older, potentially mortgage-free, and looking to access cash in retirement? That’s where equity release comes in.

Whether you’re considering expanding your offering or simply want to better support clients looking into their later life finances, understanding equity release is a smart move. Here’s what you need to know.

What Is Equity Release?

Equity release allows homeowners aged 55 and over to unlock some of the wealth tied up in their property, without having to sell or move. It’s typically used by those in or approaching retirement who want to supplement their income, fund home improvements, help family, or clear existing debts.

There are two main types of equity release products:

• Lifetime Mortgages – The most popular type, where clients take out a loan secured against their home while retaining ownership. Interest is usually rolled up and repaid when the homeowner dies or moves into long-term care.
• Home Reversion Plans – Less common, this involves selling a percentage of the property to a provider in exchange for a lump sum or income, with the right to remain living in the home rent-free.

Why Equity Release Matters for Mortgage Advisers

If you don’t plan to advise on equity release yourself, being aware of how it works means you can spot opportunities and refer clients to Key Partnerships as your trusted specialist. With the UK’s ageing population and growing interest in later life lending, equity release is a natural complement to your mortgage business.

Many homeowners are asset-rich but cash-poor — particularly those who’ve seen their property values rise significantly over the years. Equity release can offer these clients financial freedom in retirement.

For those clients who are not mortgage-free, equity release can be a viable solution to redeeming that mortgage, if no suitable repayment vehicle is in place. Clients can choose whether to make repayments or not and there are lots of options available which can be tailored to a clients personal and financial circumstances.

Key Client Scenarios Where Equity Release Could Help

• Clearing an Interest-Only Mortgage: Clients approaching retirement with no repayment plan in place may find equity release is a way to settle their mortgage.
• Boosting Retirement Income: With pensions under pressure, some homeowners turn to their property to supplement income.
• Helping Children Onto the Property Ladder: “Living inheritances” are increasingly common.
• Paying for Home Improvements or Care: Equity release can fund adaptations or private care costs while allowing clients to remain in their homes.

The Adviser’s Role in the Referral Process

You don’t need to advise on equity release to support your clients. That’s where a referral partnership with a specialist like Key Partnerships comes in. As a mortgage adviser, you can:

• Identify potential equity release cases in your client book.
• Make a referral to an FCA-authorised equity release adviser.
• Stay involved in the process, keeping your client relationship intact.
• Earn a competitive referral fee for introducing a client.

This model allows you to broaden your client support and generate a new revenue stream — all without the need for additional qualifications or compliance burdens.

Common Misconceptions — And the Reality

• “It’s a last resort” – Today’s equity release market is highly regulated, with flexible, client-focused products. Many use it proactively as part of their retirement planning.
• “You lose your home” – With a lifetime mortgage, the homeowner retains full ownership.
• “It’s expensive” – Rates have fallen significantly in recent years, and many plans now allow for partial repayments to manage the cost of borrowing.

In Summary

Equity release is no longer a niche product — it’s a mainstream financial tool for older homeowners. As a mortgage adviser, you’re ideally placed to identify when it could benefit a client and refer them to a trusted expert.

Partnering with a specialist like Key Partnerships allows you to support your clients, protect your reputation, and grow your business. If you’re ready to explore equity release referrals, we’re here to help every step of the way.