If you own a home, need extra cash or an additional income, but do not wish to sell the home and move out, equity release schemes could be the perfect option. You can either get your payment as a lump sum or in monthly instalments.
There are different types of equity release schemes but what all schemes essentially do is allow you to free up some of the equity in your home and use it. There are calculators that can help you get an approximation of the maximum equity release lump sum you can get on your home.
Equity release is a loan taken against the value of your property. However, there are different types of schemes and some schemes such as the home reversion plan require the property to be liquidated after the scheme holder has died or moved out.
Lifetime mortgage schemes are loans that are taken against the value of the home. Interest only lifetime mortgages require repayment of monthly interest and the original value of the loan remains the same, so there is no risk of devaluing your family inheritance.
Equity release can be a useful option, but it is important to explore alternatives before opting to use the equity that is built in your home. Use equity release calculators and unbiased advice to decide if equity release schemes are suitable for you.
