Equity Release Schemes
Equity release schemes open a financial gateway for over 55's in helping to release equity.
Compare Equity Release advise & source lifetime mortgage & home reversion products from
the whole of the equity release UK market. These plans can differ considerably, hence due
diligence should be taken to ensure all equity release schemes are discussed in finer detail.
Which Equity Release Schemes Are Best?
No single equity release scheme can be the best & suit everyone. People in, or near to retirement have different
circumstances & requirements. Again, we cannot stress enough to take independent equity release advice. With
over 20 different equity release schemes currently available, the choice can be daunting without proper knowledge.
An overview of equity release schemes
With the variety of UK equity release schemes available in the market, how do you know which plan to choose?
The following information on various equity release plans, will provide you with a better understanding of the range
of mortgages available. Further in-depth analysis on each scheme is provided by clicking any of the links opposite...
Lifetime Mortgages
A lifetime mortgage is the most popular type of equity release scheme. It is a loan which is secured against the
value of your home & exchanged for a tax free lump sum or income. The lifetime mortgage charges interest at a
fixed rate. This is not repaid monthly, but added to the mortgage. The balance, including compound interest is
finally repaid in full when the property is sold. This is on death or the last person moving into long....read more
Drawdown Lifetime Mortgages
A drawdown lifetime mortgage is a type of lifetime mortgage, but with added flexibility. These schemes provide you
with a cash reserve facility. You can take any amount from this initially, with the remainder being held in the reserve
facility for future withdrawal, whenever needed. The advantage being that you only get charged interest on the
amount withdrawn, which therefore saves you and your beneficiaries money over the longer term...read more
Interest Only Lifetime Mortgages
An interest only lifetime mortgage is becoming increasing popular with retirees with good surplus incomes. They
are particularly attractive if you can afford to service monthly payments into your retirement. The schemes work
by repaying the interest charged on the mortgage & thus maintaining a level balance over the whole term. Interest
only mortgages help protect the estate's value for your beneficiaries, thus controlling their inheritance...read more
Home Reversion Plans
A home reversion allows you to sell part or all of the value of your property to the reversion company in exchange
for a tax free cash lump sum (or regular monthly payments). You obtain a guaranteed lifetime lease which enables
you to live rent free in the property for the rest of your life. At the end of the plan term the property will be sold and
the sale proceeds are distributed in accordance with percentages previously agreed. This effectively...read more
Home Income Plans
A home income plan was designed to provide additional income to support retirement lifestyle. They were hybrid
equity release scheme using a combination of lifetime mortgage, or home reversion, and an annuity. The equity
release plan provided the capital, which was then immediately invested into the annuity to provide the monthly
income. A tax free lump sum could also have been taken. Home income plans have declined recent...read more
Interest Only Mortgages
An interest only mortgage requires only the interest charged by the lender to be paid back on a monthly basis. In
addition an interest only mortgage also involved payment into an investment vehicle such as an endowment, ISA
or pension. The idea being the investment plan would perform over the mortgage term & repay the mortgage
balance at the end. Hopefully, should performance be better than anticpated, then surplus cash may...read more
Capital and Repayment Mortgages
A capital & repayment mortgage is the most popular form of residential loan, providing the guarantee that at the
end of a pre-determined term the original capital borrowed will be repaid. A repayment mortgage works by the
mortgagor paying both the interest & a portion of the capital outstanding. In the earlier years, the majority of the
payment is interest & therefore the balance does not reduce by much during this period. However...read more
Further information and advice
If you have any questions regarding which equity release schemes fulfill both pre & post retirement capital raising
requirements, or wish like to arrange a free no-obligation meeting, call us today on 0800 678 5169 or complete
our online enquiry form.
