Before considering equity release, it is crucial to understand both the financial impact and long-term implications. Martin Lewis, founder of MoneySavingExpert.com and one of the UK’s most trusted financial voices, consistently advises caution. His guidance on equity release focuses on making fully informed decisions based on individual circumstances, not marketing promises.

In 2023, more than 17,000 new equity release plans were agreed in the second quarter alone, according to the Equity Release Council¹. However, Martin Lewis warns that these products are not suitable for everyone and should only be considered after exploring alternatives such as downsizing, using savings, or remortgaging.

This guide breaks down Martin Lewis’s key views on equity release, outlines the risks and protections involved, and provides actionable advice on how to approach this decision with confidence and care.

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STATEMENT: BankingTimes is a separate third-party information provider and therefore not related to Martin Lewis, and the information replicated in this section represents the interpretations of BankingTimes only and not the opinions of Martin Lewis. This piece does not constitute advice, or an incitement to enter any services or products provided by Martin Lewis.

Who Is Martin Lewis and Why Should You Trust His Equity Release Advice?

Martin Lewis is one of the UK’s most influential and trusted voices in personal finance. As the founder of MoneySavingExpert.com, a platform used by over 16 million people each month, he is known for providing clear, unbiased guidance on a wide range of financial topics, including mortgages, pensions, savings, and debt management.

With a background in financial journalism, Lewis began his career at the BBC, where he worked as a business editor on Radio 4’s Today programme and contributed to BBC One and Radio 5 Live. In 2003, he launched MoneySavingExpert.com with just £80, turning it into the UK’s leading consumer finance website.

Martin Lewis has played a major role in shaping public understanding of personal finance. He has campaigned for reforms on issues such as bank charges, mis-sold PPI, and council tax rebanding, and has consistently advocated for stronger consumer protections.

Why Martin Lewis’s Opinion on Equity Release Matters

Martin Lewis’s commentary on equity release is widely respected because it is grounded in independent analysis and a commitment to financial transparency.

Unlike many commercial sources, Lewis does not sell equity release products or receive commission from them, which allows him to offer impartial perspectives based on individual suitability.

He has publicly advised that equity release is a complex financial product that can be appropriate in some situations but should only be considered after exploring all other options.

His warnings about potential impacts on inheritance, benefit entitlements, and long-term financial flexibility are consistent with guidance from regulators and consumer bodies such as the Financial Conduct Authority (FCA) and the Equity Release Council.

What Does Martin Lewis Think About Equity Release in 2025?

Martin Lewis takes a measured and cautious stance on equity release. He recognises that it can be a valuable option for some homeowners aged 55 and over who need access to tax-free cash in retirement, but he consistently warns that it should only be considered after all other routes have been explored.

Equity release, particularly lifetime mortgages, can affect eligibility for means-tested benefits and significantly reduce the value of your estate due to compounding interest over time. Lewis stresses that while these products are not inherently bad, they are complex and come with long-term financial consequences.

According to guidance published on MoneySavingExpert.com, Martin Lewis advises consumers to approach equity release only if the following apply:

• You have a specific financial need that cannot be met in a simpler or cheaper way
• You fully understand the costs, risks, and impact on your estate
• You are prepared for reduced inheritance and changes to benefit entitlements
• You have spoken to an FCA-regulated, independent financial adviser

Lewis also cautions against rushing into any plan without comparing alternatives such as downsizing, using savings or pensions, or remortgaging with a retirement interest-only (RIO) mortgage, which may be more appropriate in some cases.

He does not endorse or promote specific providers and clearly states that suitability depends entirely on individual circumstances.

Does Martin Lewis Recommend Equity Release Plans?

Martin Lewis does not explicitly recommend equity release plans, but he acknowledges that they may be appropriate for certain people under the right conditions.

His guidance focuses on ensuring consumers take a cautious, well-informed approach before committing to such long-term financial products.

According to MoneySavingExpert.com, Lewis consistently advises the following:

• Only consider equity release after exhausting simpler or cheaper alternatives
• Compare multiple products and providers to understand differences in interest rates, flexibility, and fees
• Speak to an independent, FCA-regulated adviser who specialises in later-life lending
• Understand the full impact on inheritance, future care costs, and entitlement to means-tested benefits

Key Equity Release Recommendations from Martin Lewis

Martin Lewis outlines several principles to help consumers borrow safely and minimise long-term costs:

• Borrow as little as possible, as late as possible to reduce interest accumulation
• Choose plans with voluntary repayment options or drawdown facilities, which give more control
• Prioritise fixed or capped interest rates for predictability and long-term protection
• Ensure the plan includes a no-negative-equity guarantee, so you or your estate will never owe more than the value of your home
• Use comparison tools from trusted sources to evaluate providers before committing

These recommendations are consistent with standards promoted by the Equity Release Council.

The Role of the Equity Release Council

Martin Lewis recommends selecting providers that are members of the Equity Release Council, the industry body that sets consumer protection standards for equity release in the UK.

Products offered by Council members must adhere to strict rules, including:

• A no-negative-equity guarantee, ensuring the loan never exceeds the value of the property
• The right to remain in your home for life, provided the terms of the contract are met
• Mandatory independent legal advice before the contract is finalised
• Transparent product terms and clear communication throughout the process
• Access to flexible features, such as moving home subject to conditions, or making voluntary repayments

These safeguards reduce the risk of financial harm, especially for older homeowners who may be more vulnerable to unsuitable products.

Why Professional Advice Is Essential

Martin Lewis repeatedly stresses that equity release is a significant financial decision that should never be made without speaking to a qualified, regulated adviser.

Independent financial advice can help you:

• Assess your full financial situation and long-term needs
• Evaluate whether equity release is suitable for your goals
• Explore alternatives, such as downsizing, remortgaging, or using pension assets
• Understand the legal and tax implications
• Navigate provider differences and avoid unsuitable contracts

You can find independent equity release specialists through MoneySavingExpert’s adviser directory or via the Equity Release Council’s list of approved advisers.

What Are Martin Lewis’s Top Equity Release Warnings and Tips?

Martin Lewis is clear: equity release should be treated as a last resort, not a first choice. He advises that homeowners should thoroughly assess alternative options before considering unlocking the value of their home through a lifetime mortgage or similar product.

According to MoneySavingExpert.com, Lewis highlights several key warnings and practical tips for anyone thinking about equity release:

• Understand how equity release will affect your inheritance, future care planning, and access to state benefits
• Don’t rely on provider marketing, always consult a qualified, independent financial adviser who will consider your entire financial picture
• Take your time to research and compare plans; avoid making decisions under pressure
• Factor in long-term interest costs, especially with roll-up loans, where compound interest can dramatically reduce the equity left in your home
• Use equity release as a last option, only after reviewing more conventional financial tools

Priority Tip: Consider Downsizing First

Martin Lewis frequently recommends downsizing as a more straightforward and cost-effective alternative to equity release.

Selling your existing home and moving to a smaller or more affordable property can provide a lump sum of cash without the long-term costs or contractual complexity of a loan secured against your home.

Benefits of Downsizing:

• Preserves more equity to pass on as inheritance
• Reduces ongoing living expenses, such as council tax, energy bills, and maintenance costs
• May offer a more suitable property in terms of location, accessibility, or lifestyle preferences

Downsides of Downsizing:

• Upfront costs, including stamp duty, legal fees, estate agent commissions, and removal expenses
• Emotional impact, especially if leaving a long-term family home
• Limited availability of appropriate housing in some regions, particularly accessible bungalows or retirement-friendly flats
• Adjustment to a new environment, which may not suit all individuals

Downsizing is not without its challenges, but it often provides better financial and emotional flexibility than taking out a lifetime mortgage.

Other Financial Options Martin Lewis Recommends Before Equity Release

In addition to downsizing, Martin Lewis suggests evaluating other financial strategies that could be more cost-effective or flexible than equity release.

These may include:

• Using savings or investments: If you have accessible cash savings, premium bonds, or low-risk investments, drawing on these may reduce the need to borrow against your home. Consider how this may affect your tax position and long-term income.
• Checking eligibility for state benefits or grants: Many older homeowners may unknowingly qualify for support such as Pension Credit, Attendance Allowance, or grants for home adaptations. These can significantly reduce financial pressure without borrowing. Use official tools such as the Turn2Us benefits calculator.
• Maximising pension income: This could include deferring your State Pension to increase the future payout, consolidating private pensions for lower fees, or reviewing annuity and drawdown options under the pension freedoms introduced in 2015.

Martin Lewis encourages exploring these routes with the help of an independent financial adviser or a free guidance service like Pension Wise.

Is Equity Release Right for You? Key Takeaways from Martin Lewis

Martin Lewis consistently urges caution when it comes to equity release.

While it may offer financial flexibility to some homeowners in later life, he emphasises that it should be viewed as a last resort, only to be considered when more straightforward alternatives have been ruled out.

Here are the key takeaways from his position:

• Equity release may be suitable in specific situations, such as when you have no dependants, limited pension income, and a clear need for a lump sum or ongoing funds. However, it should not be used for discretionary spending or short-term goals.
• The cost of borrowing can be substantial, particularly with lifetime mortgages where interest rolls up over time. This significantly reduces the remaining equity in your home and, by extension, the value of your estate.
• Alternatives such as downsizing, drawing on savings, or exploring benefits should be prioritised. These options can often meet financial needs without taking on debt or risking the loss of inheritance value.
• Independent, FCA-regulated financial advice is essential. A qualified adviser can help assess your circumstances, compare products, and explain the long-term implications in plain terms.
• Equity release products vary in cost and flexibility. Compare interest rates, repayment options, and whether the provider is a member of the Equity Release Council, which offers additional consumer protections.
• Borrow only what you need. Taking the minimum amount at the latest possible time helps preserve your equity and reduces compounding interest costs.

Ultimately, Martin Lewis encourages individuals to slow down the decision-making process, seek impartial guidance, and make choices based on long-term stability, not short-term relief.

Common Questions

In Conclusion

Martin Lewis provides a balanced and evidence-based perspective on equity release, highlighting both its potential value and its long-term risks. His core message is clear: equity release is not inherently good or bad, but it is a serious financial decision that demands careful consideration.

By exploring alternatives, understanding how different plans work, and consulting with an independent financial adviser, homeowners can ensure that any decision made is informed, appropriate, and in line with their broader financial goals.

Equity release may offer a solution in the right circumstances, but only after rigorous evaluation and professional guidance.