Equity Release to Pay Off Your Mortgage
Your interest-only mortgage is approaching its term end and the lender wants the capital back.
Independent introduction serviceAccess to specialist lendersNo obligation
Get Indicative TermsGet indicative terms - free, no obligation
Doulton Money Limited · No obligation enquiry
What happens next
- Fill in the form (2 minutes).
- We'll match you with the right specialist for your situation.
- A specialist independent broker will contact you to discuss your options.
Important: Equity release is a long-term commitment and will reduce the value of your estate. It may affect entitlement to means-tested benefits. Independent financial and legal advice is required. The specialist brokers we work with source plans from Equity Release Council approved lenders. Your home may be repossessed if you do not maintain required payments on a secured loan.
About Equity Release to Pay Off Your Mortgage
This is one of the most common - and most stressful - situations facing older homeowners. Equity release is one of several solutions, and it's not always the right one. We introduce you to specialist advisers who can weigh it against RIO remortgage, specialist remortgage, and downsizing before making any recommendation.
The options available
Equity Release to Clear the Balance
Use a lifetime mortgage to repay your existing interest-only mortgage. The equity release proceeds pay off the outstanding balance. You then have no mortgage and no monthly mortgage payments - the equity release is repaid from the eventual property sale.
Switch to a RIO Mortgage Instead
A Retirement Interest Only mortgage removes the capital repayment deadline entirely - you continue paying interest monthly, and the capital is repaid from the property sale with no fixed deadline. If your income can service monthly interest payments, a RIO often preserves more equity than equity release.
Specialist Remortgage
Specialist lenders including LiveMore Capital and Hodge Bank regularly take on remortgage cases where mainstream lenders will not extend. A new interest-only or capital repayment mortgage from a specialist extends the term without equity release.
Equity Release - Partial Use
If your mortgage is £80,000 on a £350,000 property, equity release can repay the £80,000 and leave the remaining equity release proceeds (if any) for other purposes. You are not required to take the maximum equity release amount.
Downsizing
Selling your current home and buying a smaller, less expensive property outright - or with a smaller mortgage. Downsizing is sometimes the right answer, and a specialist adviser should consider it alongside the mortgage options before any recommendation.
Combination Approach
Some clients use equity release to clear part of the outstanding mortgage and combine this with a small RIO on the remainder. This reduces the equity release amount (and therefore the interest roll-up) while removing the capital repayment deadline.
How It Works
Urgency assessment
If your mortgage term end is within 12 months, contact us immediately so we can introduce you to a specialist quickly. Equity release and RIO remortgage both complete within 8-12 weeks in most cases.
Option modelling
The specialist adviser models equity release, RIO, specialist remortgage, and downsizing side by side - with monthly costs, total debt, estate impact, and timeline for each.
Lender approach
If equity release: the specialist can compare Aviva, Legal & General, Just, Canada Life, and others. If RIO: the specialist can approach LiveMore, Hodge, and Legal & General.
Race to complete
The aim is to complete before your existing lender's deadline. In most cases, this is achievable - but acting early gives the most control over the outcome.
Speak to our later life lending specialists
Call 0204 6211776 · Introductions to later life lending specialists
Frequently asked questions
Can I use equity release to repay an interest-only mortgage?
Yes - and 26% of all equity release in 2025 was used for exactly this purpose. The equity release lender pays off the outstanding interest-only mortgage at completion. You are left with a lifetime mortgage (no monthly payments required) instead of the expiring interest-only mortgage with its capital repayment demand.
Is equity release always the best solution for a maturing interest-only mortgage?
No - equity release is appropriate when you cannot afford monthly payments (so RIO is not viable) and you do not want to downsize. If your income can service monthly interest payments, a Retirement Interest Only (RIO) mortgage typically preserves more equity because interest does not roll up. A specialist adviser can model both before making any recommendation.
My mortgage term ends in 6 months. Is it too late for equity release?
6 months is workable but requires urgent action. Equity release typically completes within 8-12 weeks. Contact us immediately - we will introduce you to a specialist who will review your circumstances and confirm whether the timeline is achievable. In some cases, the specialist may also be able to request a short-term extension from your existing lender.
What if the outstanding mortgage balance is more than what I can release with equity release?
This is a negative equity situation. If the outstanding mortgage exceeds the property value, it must be addressed separately - equity release cannot create value that does not exist. The specialists we introduce you to can advise honestly on this situation and explore all available options including discussion with the existing lender.
Can I use equity release to pay off a buy-to-let mortgage?
Equity release is only available on your main residence - not on buy-to-let properties. However, if you have equity in your main residence, you can use equity release to generate funds that are then used for any purpose, including meeting obligations on other properties.