Are there different types of regulated equity release?

Yes; there are three different types of regulated equity release, each of which will be fully explained to you during your initial consultation and we will show you clear examples of how each of them works.

• Lifetime Mortgages
• Lifetime Mortgage with flexible cash release
• Home Reversion Plans

Lifetime Mortgages

Here the provider lends a percentage of the property’s value. You are charged interest on the loan but unlike an ordinary mortgage, there are no monthly repayments and no set term.

The loan continues until you vacate the property at which point the original sum borrowed plus any interest must be repaid.

Lifetime mortgages are sometimes referred to as ‘reverse mortgages’ in other English speaking countries.

Lifetime Mortgage with Flexible Cash Release

As above but with a regular cash reserve option allowing you to withdraw amounts at a frequency you choose up to a specified amount of years, or until the cash reserve has been used up.

Interest is added to the loan each month and no repayments are required during your lifetime. Interest is only charged when or if withdrawals are made.

Home Reversion Plans
Under this type of plan you sell your home or a percentage of it in exchange for a lump sum or monthly income, or a combination of both. You can stay in the property for life or until you wish to sell it, at which point the provider will reclaim that percentage of the sale price.

With these plans, there is no build-up of interest so they are sometimes favoured over the Lifetime Mortgage schemes.