Can you be refused equity release?
Equity release can be useful if you need extra funds during retirement, but there is no guarantee you will be accepted if you apply. Here’s why you could be refused equity release.
Equity release is a type of mortgage that allows you to borrow money tied up in your home without having to sell it, so you can keep living in your property.
You can choose between a lifetime mortgage or a home reversion plan (less widely available), which work in different ways.
It is worth getting expert financial advice when considering equity release, as there are many pros and cons worth considering, including the potential impact on any inheritance plans.
Equity release is popular, with lending rising 4% to £639 million in the third quarter of 2025, compared to the same period in 2024, according to the Equity Release Council (ERC).
While equity release is a useful way to access cash during retirement, not everyone is eligible.
We explore why some people may be refused equity release.
There are many criteria you must meet to successfully apply for equity release, such as age requirements and owning your home outright.
However, there are many reasons why your application may be rejected, such as the location and condition of your property.
Unbiased can quickly match you with a qualified mortgage broker who can help with your application.
What are the criteria for getting equity release?
To successfully apply for equity release, many criteria are used, including:
Your age: You and any other applicants must typically be at least 55 for a lifetime mortgage or at least 60 for a home reversion plan.
Owning your own home: You must be a homeowner and own your property. Your property must be in decent condition and in a good location so it can be easily sold.
Your property: Your home must be worth at least £70,000.
You should be mortgage-free: Either you've paid off your mortgage, or you plan to clear it with the equity release funds.
It’s worth stressing that there are minimum lending limits (£10,000), and there may be caps on the maximum amount that can be released. This could be up to 60% of the property’s value, but it can vary.
Why you may be refused equity release
There are many reasons you may be refused equity release, though the reasons vary depending on the provider.
A major reason why an equity release application is rejected is due to the property itself – ultimately, the easier it is to sell a property, the more likely your application will succeed.
Here are some factors that could result in your equity release application being rejected:
The condition of your home: The equity release provider may be wary if your property is built with non-standard materials (stone or timber, for example) or shows signs of damp, subsidence, structural issues, or wear and tear. Spray foam insulation may be an issue if it’s likely to cause problems or if it has already damaged your home. The equity release provider may request that you address any serious issues in advance.
Having a flat roof: If the majority of your roof is flat or fully flat, your application could be rejected, as leaks are more likely and the roof will need to be replaced regularly.
The amount you’re planning to borrow: The amount you’re planning to access will be considered against the value of your home.
The location of your home: The equity release provider will consider where your property is, including its proximity to pubs and shops, as this can affect how easy it is to sell your home.
Issues with the legal title: If there are restrictions or issues with your property’s title or lease, these may need to be addressed.
Your age: You need to be at least 55 or 60 years old, depending on the product. The specific age will depend on the provider and product. If you’re applying with your partner, who owns the home jointly, and they are under age 55, they must give up ownership of the property.
Flooding risk: The equity release provider may be reluctant to proceed with your application if your property is located in a high-risk flooding area. They will check if you’ve made any claims in the past for flood damage or if there’s been any recent flooding.
Your spending plans: There’s a chance your application will be unsuccessful if you’re planning to invest in high-risk assets, as this could be seen as irresponsible lending.
Extensive property changes: Structural changes and anything requiring planning permission may negatively impact your application, so it’s worth completing any renovations beforehand.
Bad credit: Any bad credit that hasn’t been declared, such as bankruptcy, a county court judgement, or missed payments, could lead to your application being rejected.
The above factors don’t mean your application will be automatically rejected.
An equity release provider will carefully consider everything and may request additional information.
If you are applying for equity release and your property is being viewed, ensure it’s free of clutter so the surveyor can more easily assess for structural issues.
Unlike other forms of lending, having a low income isn’t a reason for rejection, although eligibility for UK benefits may be affected if you release equity from your home.
What should you do if you’re refused equity release?
If your equity release application is rejected, don’t despair.
As equity release providers can have different criteria, you may have more success with another company, as they may be more flexible.
It’s a good idea to consult a qualified mortgage broker or financial adviser before applying for equity release, as they can ensure this is right for your circumstances and can help you find the best deal.
They may also be able to find an equity release provider that will consider any factors that could negatively impact your application.
When seeking a mortgage broker, it’s worth ensuring they have access to all equity release providers and products, instead of a selection, to give you the most options to choose from.
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