Equity Release Mortgages
Equity release mortgages provide a way for homeowners to convert the value
of their homes into a cash, which could be paid as a lump sum or at
intervals as required. Alternatively, it can provide a regular income.

The capital tied up in your home can be used for any purpose.

There are two main types of equity release scheme, lifetime mortgage and
home reversion.

Lifetime mortgages mean you take a loan on your home and the interest "rolls up" and the debt is taken from the property value on your death.
If you take income and/or a phased cash withdrawal, less interest will accrue than if you take a lump sum at the outset. Any increase in the property value that occurs in your lifetime belongs to you and not the scheme provider as the property is still owned by you.

A home reversion scheme means you sell your home in whole or in part. Again you can take an income or receive a cash lump sum. The scheme provider owns your home and you have a lifetime tenancy, which is usually rent free or involves a nominal annual rent. On your death the property is sold and the proceeds paid to the reversion company and any unsold portion going to your heirs.

These schemes are complicated and you should certainly take impartial
independent financial advise before proceeding.

To understand the features and risks of a lifetime mortgage ask for a
personalised illustration.

A typical fee for mortgage advice is £295.