Can I Change My Mind After Taking Equity Release?
At different stages the answer is different. Before completion you have a cooling-off period and can withdraw penalty-free. After completion, repayment is always possible, but early repayment charges almost always apply — and they can be substantial.
Before completion: 30-day cooling-off period — withdraw without penalty. After completion: you can repay, but early repayment charges typically apply. The plan ends when the property is sold after death or care entry.
Before completion — the cooling-off period
Once you have received a formal written offer from an equity release lender, FCA rules provide a minimum 30-day reflection period. During this time you can withdraw from the transaction at any point without penalty. Your solicitor will also have provided independent legal advice before completion, and the whole process is designed to ensure no one proceeds unless they have fully considered the decision.
If you change your mind during the application stage — before an offer has been made — you can simply stop. There is no obligation at any point before completion. Costs incurred (such as a valuation fee or solicitor fees already paid) may not be refundable, but no loan will have been taken on and no ERC will be due.
After completion — your options
Once the loan has completed and funds have been received, the plan is live. You can repay the loan at any time — this right always exists. However, almost all equity release plans charge an early repayment charge (ERC) if you repay before the plan ends naturally (at death or permanent care entry).
ERCs take two main forms:
- Fixed ERCs — a set percentage of the outstanding balance that reduces over time (for example, 5% in years 1–5, 3% in years 6–10, 0% thereafter). These are predictable and reduce as time passes.
- Market value adjustment ERCs — linked to gilt yields at the time of repayment. These can be higher or lower than fixed ERCs depending on interest rate conditions at the point of repayment. In a rising rate environment, gilt-linked ERCs can be very large.
Voluntary partial repayments — a middle path
Most modern equity release plans allow voluntary partial repayments of up to 10% of the original loan per year without triggering an early repayment charge. This allows you to reduce the outstanding balance and limit the compound interest growth without incurring a penalty. If your circumstances have improved — for example, you have received an inheritance — regular partial repayments can significantly reduce the overall cost. See Can I pay back equity release early?
Reviewed by Chris, CII-qualified equity release specialist · Last reviewed July 2026
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