Can you lose your home with equity release?

Understand the things you need to think about and the steps you should take when you’re considering equity release.

Published: 25 Jul 2025

Understandably, this is a concern when it comes to equity release, and there are some important considerations to take into account before proceeding. Concerns about losing your home are understandable, but this risk is minimal as long as you stick to the terms and conditions of your mortgage.

Please note that all information supplied on this page is true to the offerings of Aviva Equity Release. The type of equity release we offer is a lifetime mortgage. A lifetime mortgage is a long-term loan secured on your home available to UK homeowners aged 55 and over. Terms and conditions of other equity release providers may differ. Inheritance will be reduced and welfare benefits may be affected. 

Is it possible to lose your home with a lifetime mortgage?

You would have to breach certain terms and conditions of your mortgage to an extent where your provider demanded you repay the loan.

Abiding by the terms and conditions will allow you to stay at your property without any problems. With our lifetime mortgage, the terms and conditions are clearly communicated before committing, and Aviva will always act reasonably to ensure that situations are rectified for both parties.

What happens if you breach the terms and conditions of our lifetime mortgage?

As an equity release provider, we will always get in touch should any issues arise, so you don’t have to worry that you’d lose your property straightaway. We would contact you to resolve the issue, giving you an opportunity to rectify it.

If you are asked to repay your loan, our equity release mortgage has a no negative equity guarantee. This means you'll never have to repay more than the money received from the sale of your property, provided that it is sold for the best price reasonably obtainable. The no negative equity guarantee also ensures that your home cannot be repossessed due to the property going into negative equity, as long as you have adhered to all the terms and conditions.

How can you prevent losing your house with equity release?

The best advice we can give you is to stick to the terms and conditions of your agreement, making sure your property continues to be your main residence. 

Another thing to remember is that your provider is bound by the terms and conditions of the policy as much as you are. That means they can’t simply decide to end the agreement on the terms and conditions of the contract.

Aviva will always ensure fair and clear communication to ensure that potential customers are aware of all of the terms and conditions involved. You have to seek financial advice when taking out equity release, and we will waive any fees for this should you take this out with us – this will help further with anything you may be unsure of.

As we mentioned earlier, Aviva will always act reasonably to ensure that both parties can come to a solution. The purpose of equity release is to let your unlock money from your home while you continue to live in it. If everyone sticks to the agreement, then you won’t be at risk of losing your home.

If you'd like to find out more, you can visit the the Equity Release Council website. The Equity Release Council champion high standards and safeguards for equity release customers. And, as a long-standing council member, we’re committed to these values too.

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