Alternatives to Equity Release

A lifetime mortgage can be useful, but it should not automatically be the first or only solution considered. The best route depends on what you are trying to achieve, your income, property, existing mortgage and how important it is to avoid monthly payments.

Retirement Interest Only mortgage

If you have sufficient sustainable income to pay interest each month, a RIO mortgage may allow you to borrow into retirement without interest rolling up. Read the RIO guide.

Conventional interest-only mortgage

Some lenders permit interest-only borrowing into later life where affordability and the proposed repayment strategy meet their criteria. This can be particularly relevant where an existing interest-only term is ending.

Repayment mortgage

If the monthly payment is affordable, a capital-and-interest mortgage reduces the debt over the agreed term. Some lenders allow terms extending well into retirement, subject to age and income criteria.

Downsizing

Selling and moving to a less expensive property can release capital without taking new secured borrowing. The practical costs of moving and whether a suitable property is available should be included in the decision.

Use savings or other assets

Where substantial cash, investments or other assets are available, using some of them may avoid or reduce borrowing costs. The consequences for emergency reserves, investment objectives and tax should be considered separately.

Family support

In some situations family members may be able to help, but arrangements should be documented carefully and independent legal or tax advice may be appropriate.

Borrow less or use drawdown

If a lifetime mortgage is suitable, you may not need to release the maximum available. Taking only what is needed now, potentially with a drawdown facility for later, can reduce the amount on which interest accrues.

Quest Finance starts with the objective rather than assuming one product is right. Our Later Life Mortgage Checker considers lifetime mortgages, RIO, interest-only into retirement and repayment borrowing as possible routes.

Reviewed by David Farrell, Later Life Lending Specialist. Last reviewed: 3rd October 2026.