What is Equity Release ?
Equity Release is a term given to schemes that help homeowners release some of the capital tied up in their home with the option of making no repayments until you, or if later, your spouse, dies or needs to move into Long Term Care, at which point the house is sold, the equity release loan repaid and any balance paid to your estate.
Please note: As we only offer advice on safe, regulated equity release schemes, you can be assured that unless specifically requested by you, (by you agreeing to a Home Reversion plan), you will not have to sell your home or pay any rent, and under all schemes you will retain the right to remain living in your home for as long as you wish.
"Equity release" includes home reversion plans and lifetime mortgages. To understand the features and risks, ask for a personalised illustration”.
Types of equity release
There are two different types of Equity Release Schemes:
- Lifetime Mortgages
- Home Reversion Plans
Under Lifetime Mortgages there are different variations including :-
- Lifetime roll up mortgages where the interest is not paid all the time you remain in your property but is rolled up on the debt.
- Home Income Plans where the lump sum released is automatically used to buy an annuity, and the income this generates is used to pay the monthly interest payments, plus dependent on age, provide a possible monthly surplus for you to enjoy as additional income.
- Interest Only Lifetime Mortgages where you elect and will be required to make monthly repayments of interest for duration of the mortgage to avoid the debt building up.
All equity release loans involve borrowing against, or selling all or part of your home, and may work out more expensive in the long term than downsizing to a smaller property, and may affect your entitlement to State benefits and grants. There may be more suitable methods of raising the funds you need. We would be pleased to assess this before recommending an equity release scheme for you.