Quotes for Equity Release Schemes

Managing life on a small pension and savings represents a real challenge for many Britons who have reached retirement age. However, with the property boom over the past decade many retirees will have built up a huge value in their homes they might not even be fully aware of.

Equity release schemes may be a viable way of boosting retirement income for some pensioners who are 'property rich and cash poor' by making use of the equity tied up in the property. 
 
Two main types of equity release schemes offering either a lump sum payout or a regular monthly payment are available:

Compare Home Equity Release Schemes

1. Lifetime mortgages

  • A loan in form of a mortgage is secured on your house
  • The loan capital is paid out to the homeowner in a tax-efficient way
  • Advantage: the homeowner retains complete control over the property
  • Disadvantage: interest is payable or rolled up on the loan, in which case the accumulated interest will be repaid with the loan when the house is sold or on death

 

2. Home reversion schemes

  • The whole or part of the property is sold to a home reversion company
  • The homeowner can live in the property rent-free
  • The capital paid out can be used as a tax-efficient income
  • Advantage: no interest is payable or rolled up, no need to be concerned over future house prices
  • Disadvantage: the plan holder has to give up part or all of his ownership rights to the property

Both types of equity release schemes might be suitable for different homeowners; however, either of them will provide homeowners who are prepared to make use of the equity locked in their property with a much needed retirement income.


In order to provide homeowners with a guarantee for the safety and security of their schemes, most reputable providers of equity release plans have signed up to the Safe Home Income Plan's (SHIP) code of practice, and a 'no negative equity' clause is obligatory in their plans.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Equity release may affect your entitlement to state benefits and will reduce the value of your estate. It may involve a lifetime mortgage or home reversion plan. All content set out in this website is provided for information only and should not be considered as advice. It is strongly recommended that you seek advice of a qualified, independent financial advisor before making any decisions to take out an equity release product.