Equity release alternatives include downsizing, a retirement interest-only mortgage, savings, a benefits check, grants and renting a room. Here is how each compares.

MoneyHelper, the government-backed guidance service, says "Always look at the other options available to you, particularly if you need to raise cash for things like funding later life care." Below is what each option costs; none is recommended. A qualified equity release adviser can test which of them stacks up for your own house and income; the form on this page sends a short note to one FCA-authorised firm, free.

For the pros and cons of equity release itself, see is equity release a good idea?

Downsizing

In MoneyHelper's words, "selling and moving to a smaller or cheaper property can be one way of raising extra money for your retirement." Nothing is borrowed; "Smaller houses usually have cheaper bills and lower maintenance costs too", and you could "move closer to friends and family or to an area you like".

Buying the smaller home brings stamp duty, mortgage fees, moving costs and "estate agent’s, solicitor’s and surveyor’s fees", which MoneyHelper says "can add up to much more than you would expect, often running into tens of thousands of pounds." The sale may also fetch less than hoped, so it suggests asking "three different estate agents to give a valuation". Renting avoids the buying costs, though "Renting is less secure than owning your home, however."

Borrowing against the home another way

For someone with enough income, MoneyHelper names a retirement interest-only mortgage, where you pay the loan interest each month and the lender checks you can. More is likely to be left to pass on, but falling behind puts the home at risk, and some set a date for repaying the loan. Retirement interest-only mortgage vs equity release compares the two. If you still have a mortgage, borrowing more or replacing it is another route (equity release vs remortgage).

Savings, pension money or a lodger

MoneyHelper says: "Think about cashing in any investments or using savings before taking out an equity release product." That adds no debt, but the cash cushion shrinks, and investments can drop in value as well as grow, so cashing them in could return less than you put in. Pension money has its own tax rules (your pension options at retirement; free guidance from Pension Wise); read the FCA's pension scams page before acting on any unexpected offer.

A lodger brings in income without borrowing. GOV.UK says "The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home", halved to £3,750 if you share the income (its figures in October 2026). Above that "You must complete a tax return", and you "must tell your council if having a tenant means you’re no longer entitled to a single person discount." Whether lodger income affects a benefit is a question for DWP or your council.

Benefits, grants and help with care or repairs

GOV.UK points to free, anonymous benefits calculators. Owning your home does not rule out Pension Credit: "You can get Pension Credit even if you have other income, savings or own your own home." You must have reached State Pension age and live in England, Scotland or Wales, and the Pension Credit calculator gives an estimate for your own figures (see also equity release and benefits). If the money is for care, MoneyHelper says to "talk to your council about getting a care needs assessment. This checks if you’re eligible for local authority support." Equity release and care costs looks at that case.

For adaptations, GOV.UK says "You could get a grant from your council if you’re disabled and need to make changes to your home", giving age-related needs as one example. It lists Disabled Facilities Grants in England, Wales and Northern Ireland; in Scotland they "are not available", and it points to support for equipment and adaptations instead. A grant "will not affect any benefits you get", you may contribute depending on income, and starting work before the council approves can cost you the grant. For wider home improvements, MoneyHelper lists Foundations (England), Care and Repair Cymru (Wales), Care and Repair (Scotland) and NI Direct (Northern Ireland); see also equity release for home improvements.

Weighing them against equity release

An equity release adviser must look at alternatives too. Under FCA rule MCOB 8.5A.6R, the factors a firm "must consider" include whether the benefits outweigh any harm to your means-tested benefits or tax, and "alternative methods of raising the required funds such as, in particular:" a local authority (or other) grant, or a further advance on an existing mortgage, a new mortgage to replace one, or an extra release under an existing home reversion plan. Where a grant might fit, such as "funds for essential repairs", its guidance (MCOB 8.5A.9E) is to refer you to your local authority or Citizens Advice. If you reject a firm's view that an alternative suits you better, it may still advise on an appropriate plan but must confirm the basis in a durable medium (MCOB 8.5A.10R).

Equity release has its own costs (the UK equity release explainer): roll-up interest compounds, so an earlier start means longer growth; heirs get only what remains after repayment; means-tested benefits can fall; and repaying early can bring an early repayment charge (repaying early).

Plans from Equity Release Council members meet its product standards, which bind members, not every lender: a rate fixed or capped for the loan's life; a right to remain there until death or a permanent move into care, so long as it stays your main residence and the contract is kept to; and a no-negative-equity guarantee, under which you or your estate will not owe more than the home fetches after reasonable selling costs, if a sale at the best price reasonably obtainable takes place and nothing in the loan agreement has been breached (the standards in full).

Arranging a plan means working with a qualified equity release adviser; beyond that, independent legal advice is another requirement of the Council's standards (the solicitor's role), and it suggests, "if possible, to talk it over with your family". Scots law insists on a standard security for any debt over Scottish land (Conveyancing and Feudal Reform (Scotland) Act 1970, section 9). If anyone approaches you unprompted about releasing cash from your home, the FCA says to treat all unexpected calls, emails and text messages with caution (FCA, protect yourself from scams).

Questions people ask

Is downsizing better than equity release?

Neither is better in general. Downsizing turns part of your home into cash at the cost of a move; a lifetime mortgage lets you stay put but usually leaves a growing debt. Which leaves more depends on your home, the one you would buy and how long a plan would run.

What is the alternative to a lifetime mortgage?

MoneyHelper names downsizing, a retirement interest-only mortgage and cashing in savings or investments, to be talked over with a mortgage adviser. If the aim is to clear problem debt, it says to "speak to a trained adviser for help", and free debt advice is available.

Can I get a lifetime mortgage without equity release?

No: a lifetime mortgage is one of the two kinds of equity release. To borrow against your home without it, see the retirement interest-only mortgage and remortgage routes above.

Next step

If two or three of these could work, ask a qualified equity release adviser to line them up against your age, home, benefits and family in a single call, which a few lines typed into the form on this page will set up. MoneyHelper's guidance stays free either way.

Sources: MoneyHelper, What is equity release?; MoneyHelper, Downsizing; MoneyHelper, Retirement interest-only mortgages; GOV.UK, Rent a Room Scheme; GOV.UK, Disabled Facilities Grants; GOV.UK, Pension Credit; GOV.UK, Benefits calculators; FCA Handbook, MCOB 8.5A; Equity Release Council, What is equity release? and Standards; legislation.gov.uk, 1970 Act s. 9; FCA, Protect yourself from scams. Accessed 18 October 2026.