What types of equity release plans are there?

There are two main types of equity release plan available:

Lifetime Mortgages – this is where a loan is taken out against the value of your property but you still retain full ownership. You can borrow a lump sum or take an income at an agreed interest rate. The loan is paid upon your death using the cash you made from the sale of your house.  The interest that is built up is repaid – along with the total loan amount – once you die or move permanently into care. You will continue to have full ownership of your own property and you benefit from any increase it may have in value.

Home Reversion – this is where you sell all or part of your home to a home reversion company, meaning that you give up part or complete ownership in the property. You can continue to live in the property for as long as you like. When you die or move into long term care your home is sold by the home reversion company who in turn keep a percentage of the proceeds of sale equal to their percentage of ownership.

If you feel that equity release may be right for you, or if you’d just like to know more you can call 0800 622 6035 or request a call back. One of our team will be able to discuss with you your circumstances, review your eligibility and, if appropriate, arrange an appointment for you with an adviser.