Equity release is a tool enabling home owners to use the value of their homes to produce a capital sum or an income while they continue to live there. There are various types of equity release plans, and we recommend that you take independent financial and legal advice before entering into one.
There are also many providers of equity release plans, and each lender can have differing interest rates, loan criteria and customer benefits, each of which should be thoroughly researched to match your personal needs.
Lifetime Mortgages and Home Reversion schemes are the two main types of equity release schemes.
- Under a Lifetime Mortgage, the owner takes out a loan as a mortgage while retaining the ownership of the property.
- Under a Home Reversion scheme, the owners sell their home, or part of it but retain the right to live there for their lifetime.
For more information please download a copy of our Equity Release factsheet