Will equity release affect my benefits

The government will assess your entitlement to means-tested state benefits based on your capital, savings and income. Equity release is classed as a loan and as such exempt from means-tested benefits calculations, however, your benefits may still be affected by equity release.

Equity release will affect benefits if the income gained puts you above the benefit threshold. If equity is used to a pay loan or mortgage then it is not classed as income and will not affect benefit payments.