an annuity converts a lump sum into regular income, which is taxed

annual percentage rate
– the APR includes important factors such as:

• the interest rate you must pay;
• how you repay the loan (length of loan agreement [or term], frequency and timing of instalment payments and amounts of each payment );
• certain fees associated with the loan; and
• certain compulsory insurance premiums (for example, payment protection insurance)

a commitment or administration fee usually payable to the lender to reserve the mortgage funds

the interest owed on a lifetime mortgage – it is based on the original loan and on the accumulated past interest

a scheme that lets you raise money from your property – as either a lump sum or regular income, or both – and at the same time gives you, and a partner, the right to remain living there until you both die or move into long-term care

the FSCS can pay compensation if a member firm is unable, or likely to be unable, to pay claims made against it

an equity release scheme where you sell all or part of your home in return for a cash lump sum, a regular income, or both

important information for you from your financial adviser, set out in a format specified by the FSA, so you can compare service, product and costs (make sure you get them and read them

fees you pay to your solicitor for their services to you

how much longer you’re expected to live

an equity release scheme where you take out a loan secured on your home, which is repaid by selling your home when you die or go into long-term care

the amount you owe the lender is more than the value of your home

when you do not make repayments the interest on the loan is added to the loan – this means you may end up owing more than you borrowed