Equity release allows older homeowners to access long-term finance which can be used to release equity from their home, or to purchase a property, where a conventional mortgage is unavailable due to their age.
With a lifetime mortgage, you take out a loan secured on your home while retaining ownership. You can choose to make repayments or let the interest roll-up. The loan amount and any built-up interest is usually paid back by selling the property when the last borrower dies or moves into long-term care. Interest rates can be fixed for the life of the plan and some providers also provide the option to protect some of the value of the home for your family to inherit
With a home reversion plan you sell all or part of your home to a home reversion provider in return for a lump sum or regular payments. You will retain the right to continue living in the property until you die but are responsible for maintaining and insuring it. Where only a part of the property is sold, the remaining share continues to be yours. When the last person dies or moves into long-term care, your property is sold, and the sale proceeds are shared according to the remaining proportions of ownership
The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
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