Equity release is a name given to plans that allow you to release money, or equity, currently locked away in your home. A vast amount of people in the UK do not have as much income in retirement as they would like, but they still have many things they wish to do in life, such as go on holiday, buy a new car, pay off debts or perform home improvements. Some just want an additional income boost to improve their standard of living overall.
Depending on the type of Equity Release plan selected, you could receive either a cash lump sum, or a regular income paid directly to you - to spend however you choose, without moving out of your home.
To find out whether you qualify for Equity Release Click Here.
Below are the two main types of plans available for Equity Release briefly summarised.
- You take out a loan secured on your property.
- The loan is paid to you as a cash lump sum upfront or you can opt for a 'Drawdown' plan where you are given a maximum limit that you can borrow, and you make withdrawals at any point (subject to minimum amounts).
- You continue to live in your home.
- You are not required to make repayments on the loan during your lifetime.
- The loan is repaid from the sale of your property on death or if you move into a care home.
- If a couple take the loan out together it is repaid on the second death or move to care.
- The loan can be setup on a fixed or variable basis, we will help you decide.
Home Reversion Plan
- You sell all or part of your house to a reversion provider.
- You receive a cash lump sum.
- You no longer own the portion of the property sold but continue to live in the house.
- The house is sold on the death or move into care of the last person in the agreement.
The above is just a brief introduction to the main types of Equity Release plans. To compare them in more detail see Equity Release Plans Compared.