Can I Get Equity Release with Bad Credit?

Past credit problems do not automatically prevent a lifetime mortgage, because lifetime mortgage underwriting differs from a conventional affordability-based mortgage. However, the details still matter and outstanding secured debts normally have to be dealt with as part of completion.

What may need to be disclosed?

Credit issues can include missed payments, defaults, county court judgments, IVAs, bankruptcy or other debts. Lenders and advisers may need information about current liabilities and how released funds will be used.

Debt consolidation

Using a lifetime mortgage to repay debts can reduce monthly commitments, but converting unsecured or shorter-term debt into borrowing secured against your home can increase the period over which interest is charged. The long-term cost should therefore be compared carefully.

Existing mortgage arrears

If an existing mortgage is being repaid from the lifetime mortgage, the redemption amount must normally be cleared on completion. The lender will assess the application under its current criteria.

Other routes

Depending on income and circumstances, specialist conventional mortgages or RIO lending may also be worth considering rather than assuming equity release is the only route.

Reviewed by David Farrell. Last reviewed: 3rd October 2026.

Equity release reduces the value of your estate and may affect means-tested benefits. Your home is security for the lifetime mortgage.