Types of equity release schemes
Although there are many different plans available, they can all be split into four main categories of equity release schemes.
You release a lump sum from the value of your property, whilst maintaining 100% ownership of your home. This amount, plus any interest accrued, is repaid from the sale of your property when you pass away or move into long-term care.
Drawdown Lifetime Mortgage
This is similar to a lifetime mortgage, but with added flexibility. The cash can be released over time, as and when you need it. Because you only accrue interest on the funds once you have taken them, this can reduce the amount you pay over time (when compared with a lump sum).
Interest-Only Lifetime Mortgage
This is like a standard lifetime mortgage; however, you make regular payments so that the amount you owe remains constant. This amount would then be paid from the sale of the home, typically once you have passed away.
Home Reversion Plan
Here, you sell some or all of your property in exchange for a lump sum of money, whilst maintaining the right to remain living in your home, rent free, for as long as you live.
Choose the right equity release scheme for you
To ensure you get the most benefit from equity release, it's really important you choose the best plan to suit your individual needs and circumstances. Our qualified advisors can explain each option to you, and provide you with a full, written equity release recommendation without any obligation.
There's never any obligation on your part and, if we think equity release is not suitable for you, we'll tell you straight away.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks ask for a personalised illustration. Before you proceed with releasing equity, please ensure that you've read our list of things to consider about equity release.
Call us today on freephone 08080 555 222 to find out how equity release could help you.
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