Equity Release

If your income in retirement is not enough to fund the lifestyle you'd hoped for, an equity release plan could help you unlock the value in your home. Equity release schemes can be very helpful but aren't suitable for everyone. It's important that you understand the risks, the costs, the level of flexibility and the possible impact on future state benefits.

There are several schemes but basically just two types. Both allow you to draw a lump sum or an income.

Lifetime mortgages are currently the most popular type of equity release plan. You make no repayments until your home is eventually sold on your demise or you move into long term care.

Alternately, there's a home reversion plan, which allows you to sell all or part of your home to the reversion provider. Again, the plan comes to end usually when you die or if you go into long-term care. Then the property is sold, the reversion provider will then take their share of the sale price and pay any balance to you or your estate. If you sell less than 100%, you can guarantee an inheritance for your family from the sale of the property.

The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted to customers in the UK.