Using Equity Release to Help Children or Family

Some homeowners use a lifetime mortgage to make a gift to children or other family members, for example toward a house deposit. This can be possible, but the consequences for your own future finances should come first.

Borrowing cost

If interest rolls up, the amount eventually repaid can be considerably more than the amount gifted. Borrowing less, using drawdown or making voluntary payments can sometimes reduce the effect.

Keep enough for your own needs

Future care, home maintenance, emergencies and retirement spending should be considered before giving away borrowed money.

Tax and estate planning

Gifts can have inheritance-tax and estate-planning consequences. Mortgage advice is not a substitute for specialist tax or legal advice where that is required.

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