Equity release can open up exciting new possibilities and can make your retirement more comfortable. Looking at the equity release plans available in the market is an important part of retirement planning.
An equity release scheme 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 in your own home until you both die or move out.
Basically, there are two types of equity release scheme available in the market, with several variations on each.
The lifetime mortgage involves taking out a new loan secured on your home, and the home reversion involves selling all, or part, of the ownership of your home. In return, these equity release schemes will pay you a tax-free lump sum and/or an income for life. The overall products now available look like this:
- Lifetime Mortgage
- Drawdown Lifetime Mortgage
- Interest-Only Lifetime Mortgage
- Home Reversion Plan
You will need to talk to an equity release specialist IFA to find out which plan would best suit your financial needs in the future.
The good thing is that equity release providers and the specialist advisers are regulated by the Financial Conduct Authority (FCA) – offering considerable protection to the homeowner.
Go to Getting Started for more information