The risks of using equity to release to cash in on your home

Equity release is getting more popular. But think carefully before joining in, says David Prosser.

Growing numbers of cashstrapped homeowners are turning to the value locked up in their properties to bolster their finances, new research suggests. Data from debt advice specialist Henry Dannell reveals that homeowners raised £4.8bn via equity release plans in 2021, a 24% increase on the previous year.

The average homeowner raised £63,000 through equity release, 19% up on 2020. Equity release plans allow homeowners in need of cash later in life to take money out of their property without having to move home.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.