Equity Release – Plans?…


There are two main types of equity release – Lifetime Mortgages and Home Reversion plans.
Both these types of equity release plans are regulated by the Financial Conduct Authority (FCA).

Equity release is a vehicle that allows homeowners aged between 55 and 95 to release the equity in a property without having the upheaval of selling up and moving to another home. You can either borrow against the value of your home or sell all or part of it in exchange for a lump sum or a regular monthly income.

Some plans give you the option to “draw down” further equity (cash) at a later date, based on your requirements.

Equity release is designed to help older customers who either own their property outright or have relatively small mortgages left to pay. They may decide to release equity in their property that is, take out a loan or sell part of the value of the property  knowing that they will not actually pay that money back to the lender or reversion provider, in the case of a home reversion plan.

The loan or reversion sum will be repaid at a future date when the property is sold.

By using an equity release product, home owners can draw a lump sum or regular smaller sums from the value of their home while continuing to live in it.

Mortgage Solutions can provide the professional, impartial advice that you need to ensure that you choose the right option for your individual circumstances.

If you are considering equity release we recommend that you read is it right for you? carefully.