For those who read our regular articles, tips and guides on mortgages, then you may be familiar with the fact that Complete Mortgages is an equity release mortgage broker in Guildford. You may also be familiar with how equity release works, as we’ve prepared plenty of articles on the subject.

However, from speaking with our clients when they apply for an equity release mortgage with us, it sounds as though there is still a general misunderstanding around the benefits of equity release. In fact, there appears to be a number of misconceptions around this type of lending, some of which we would like to address here.

So, in a bid to dispel the myths and present the facts about equity release, here is a selection of the five most common misconceptions that our team of Guildford equity release advisers keep coming up against.

1. My children will inherit my property debt

One of the most powerful reasons not to take out an equity release mortgage for obvious reasons – but it’s not true. Under the Equity Release Council’s ‘no negative equity’ scheme, the person applying for an equity release mortgage – and those set to inherit from them – will never owe more than the value of their home, and will never have to pay back more than the amount the property sells for.

2. My home is no longer mine

Again, another reason to avoid equity release – but again, it’s not accurate. If you have a lifetime mortgage then it doesn’t mean that you’ve sold your property to the lender. It just means that you’ve taken out a loan against your property that will be repaid when you either move into long-term care or die.

3. I’ll be locked into one house

Taking out a lifetime mortgage on a property doesn’t mean that you’re forever tied to that property. Like other portable mortgages, you will be able to take this loan with you. Although there is likely to be a number of criteria that you’ll need to meet, it doesn’t mean that all your choices and the freedom to move will be taken away.

4. Equity release mortgages are a last chance saloon

Another common misconception is that equity release is for people who need money and don’t have any other options. This is not true. People use the benefits of a lifetime mortgage for many reasons, none of which come down to desperation.

5. What’s the point in equity release if I still need to make monthly payments?

You can pay off the interest on a monthly basis if you wish. However, there is no obligation to make any monthly payments whatsoever. Many people let the interest roll up and then arrange for the loan to be paid off when the borrower dies.

We’ve hopefully allayed some of your concerns and given you the reassurance that you may be seeking. However, if you still have questions about equity release mortgages then get in touch with our Guildford equity release team.

If you’d like to explore the equity release mortgage options open to you then contact the Complete Mortgages team on 01483 238280 or email