There are two main types of Equity Release plans.
The first one is the type which is most widely available, a Lifetime Mortgage.
This involves taking out a loan on your home where the interest is normally not paid until the house is sold in the future.
You will remain the owner of the home, although the Equity Release mortgage (plus interest) that has been taken out will erode the value of the home for your beneficiaries when you die.
The second type of Equity Release scheme is a Home Reversion.
This is where your home is partly sold to a reversion company who will exchange the part sale for a lump sum of money. They will then get their share of the house when it is eventually sold.
It is likely that the lump sum you will receive will be less than the value of your home.
Equity Release Mortgages aren’t for everyone, but our experts in Equity Release, Daniel and Keith are happy to have a free initial consultation with you to discuss your requirements and help you decide whether Equity Release is the right thing for you.