How does equity release work?

With house prices having risen dramatically in recent years and the increasing cost of living, many people are living in a property that is now worth significantly more than it was bought for, but finding themselves struggling to survive on a pension alone.

Release the equity in your home with a lifetime mortgageEquity release schemes offer you a way of freeing some of the funds that are tied up in your home to provide you with either a cash lump sum or a regular income.

The most popular type of equity release plan is a lifetime mortgage.

Types of Lifetime Mortgages available include:
  • New! Second Home Lifetime Mortgage
  • Home Income Plans
  • Roll Up Mortgage
  • Drawdown
  • Maximum Cash Plans
  • Guaranteed Equity Plans
  • Interest Only Plans
  • Fixed Repayment Mortgage
The other types of equity release plan is a Home Reversion Plan.

Types of Home Reversion available include:
  • Income Plans
  • Maximum Cash Plans
With a reversion plan you agree to sell a percentage of your property to a Reversion Company in exchange for a guaranteed lifetime lease and a tax free lump sum or income. The lifetime lease allows you to live in your home, rent free for as long as you wish. The scheme will end when you die or move (perhaps into a care home) with the property being sold with the residual proceeds going to your beneficiaries or yourself.

A meeting, either face-to-face or over the phone, with one of our qualified advisors will enable the best type of plan for your needs to be determined.