Jasmine Birtles
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Breaking Free from the Rent Trap – How Equity Release Can Help You Support Family Members
Moneymagpie Team
14th May 2025
As property prices soar and rental costs climb, many families find themselves under growing financial strain.
Young adults struggle to get onto the property ladder, single parents face unstable housing conditions, and older relatives are often asked to help—but may feel financially limited.
Yet, for many homeowners aged 55 and above, there may be an untapped source of support available: the value tied up in their homes.
In this thoughtful guide, Bert Hofhuis, founder of TimeBank, explores the criteria of equity release, and how it can empower older homeowners to provide meaningful, lasting support to family members—without compromising their own comfort or security.
- The Modern Family Dilemma: High Rents, Delayed Independence
- Understanding Equity Release: A Flexible Financial Tool
- Helping Loved Ones Break the Rent Cycle
- Emotional Rewards and Intergenerational Impact
- Smart Gifting: Things to Consider Before Releasing Equity
- Beyond Finances: The Value of Financial Education
- Modern Plans, Modern Peace of Mind
- Conclusion: Supporting Family with Dignity and Confidence
The Modern Family Dilemma: High Rents, Delayed Independence
Across the UK, rising living costs and stagnant wages are causing a generational squeeze.
Young adults often remain in rented accommodation longer than planned, unable to afford deposits or meet strict lending criteria.
For older family members, watching their loved ones struggle can be emotionally difficult.
While many are willing to help financially, accessing liquid funds in later life can be a challenge.
Pension incomes are often fixed, and drawing from savings may feel risky.
Equity release offers an alternative—a way to provide real support without selling or leaving the home.
Understanding Equity Release: A Flexible Financial Tool
Equity release allows homeowners aged 55 or older to access some of the value locked in their homes as tax-free cash.
The most common method, a lifetime mortgage, lets you borrow against your property, with repayment typically occurring when you pass away or move into long-term care.
Modern equity release plans are designed with flexibility in mind, allowing you to:
- Take a lump sum or draw down smaller amounts when needed
- Make voluntary repayments if you wish to manage interest
- Protect a portion of your home’s value for inheritance
- Remain in your home for life
Bert Hofhuis explains, “Equity release is not about giving up your home—it’s about using it to give your family a head start or safety net when they need it most.”
Helping Loved Ones Break the Rent Cycle
Releasing equity can enable you to provide financial gifts that change lives.
Here are a few common ways families use it to combat the rent trap:
- Help with home deposits – supporting children or grandchildren with a first-time buyer deposit
- Covering rental costs – easing the pressure of rent for a period during tough times
- Supporting single parents – offering housing help or childcare funding
- Reducing reliance on credit – paying off family members’ debt to free them from interest burdens
- Funding education or career changes – helping loved ones build long-term financial independence
In many cases, this support isn’t just financial—it provides peace of mind, confidence, and an improved quality of life.
Emotional Rewards and Intergenerational Impact
Choosing to help your family using equity release is not just about numbers—it’s about connection.
It’s a way of saying, “I believe in you,” and giving loved ones the freedom to move forward.
Older adults often report a deep sense of purpose and pride when they’re able to provide support.
Meanwhile, younger family members benefit from improved housing stability, reduced stress, and better opportunities for growth.
“Supporting others can be one of the most fulfilling uses of equity release,” says Hofhuis. “It allows you to witness the impact of your generosity during your lifetime.”
Smart Gifting: Things to Consider Before Releasing Equity
While equity release can be transformative, it’s essential to proceed with care.
Consider these key points:
- Affordability: Only release what you need—this reduces interest costs over time.
- Tax implications: Large gifts may have inheritance tax implications if you pass away within seven years.
- Family communication: Be transparent with all family members to avoid misunderstandings or expectations.
- Long-term planning: Consider your own needs—medical care, lifestyle, or unexpected expenses—before gifting.
- Get expert advice: Always speak to a financial adviser and solicitor to ensure full understanding.
Responsible planning ensures that your support uplifts others without placing your own future at risk.
Beyond Finances: The Value of Financial Education
Supporting family isn’t just about giving—it’s also an opportunity to educate.
Releasing equity and offering financial help can serve as a valuable starting point for conversations about budgeting, saving, credit, and financial planning.
It can help younger generations learn how to make money work for them and avoid repeating the cycle of debt or dependence.
As Hofhuis notes, “Empowering your family through financial help also means equipping them with knowledge. That’s how real, long-term change happens.”
Modern Plans, Modern Peace of Mind
Today’s equity release plans are safer, more flexible, and more transparent than ever before.
Homeowners can:
- Choose fixed interest rates for long-term predictability
- Make partial repayments to control debt growth
- Use inheritance protection to secure part of the estate
- Continue to live in the home they love, with no need to move out
This means you can support family now—without sacrificing your own comfort later.
Conclusion: Supporting Family with Dignity and Confidence
If you’re in a position to help, equity release can offer a way to ease the burden on your family, break the cycle of renting and debt, and see the impact of your support in real time.
It’s a meaningful, practical way to show love, share success, and strengthen your family’s future—while still protecting your own.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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