What is Equity Release?

Are you looking to free up some cash quickly?

Equity release schemes allow people over 55 to release equity built up in their home. All equity release schemes will be designed around you. Our experts explain the various plans including drawdown, lump sum, enhanced and the interest only lifetime mortgage.

Once a release of equity is taken, there are two options with regards to controlling its future balance. The traditional method is to make NO monthly payments. This results in the interest compounding yearly for the rest of one's life. This results in an increasing balance which reduces the beneficiary's inheritance.

Therefore, more recently the option of repaying, some, all, or even upto 10% of the capital originally borrowed has been introduced. This flexibility has enabled equity release plan holders to be able to control the future balance, whether it is level or even reducing in the future.

Whichever option is chosen, the mortgage lasts for the lifetime of the property owner. Equity release schemes are repaid upon the death, or moving into care of the last survivor. At that point the balance of the equity release loan is repaid from the sale proceeds. Any remaining balance passes to the beneficiaries.

Due to its highly regulated nature, equity release schemes can only be taken out following advice from an equity release specialist who has the correct qualifications. Therefore, as you cannot go direct to an equity release company, a specialist broker needs to be sourced…hence your search starts here!