Home Page About Equity Release Equity Release Q&A Contact Us Key Facts Phil Edwards Independent Financial Adviser MLIA ( dip ) CeMAP Call: 07930 317 402

About Equity Release The two main types of equity release schemes are:- Lifetime Mortgages and Home Reversion plans.   Lifetime Mortgages are interest only loans with no fixed repayment period. Interest rolls up until the borrowing is repaid on death, moving into long term care, or on the sale of the property. Any remaining balance in the value of the home goes to the estate.   The maximum amount that homeowners can borrow is determined by their age and the property value. The older you are, the higher the percentage of the house value that can be released. Most lifetime mortgages now offer a ‘no negative equity’ guarantee which ensures that the homeowner will never owe more to the lender than the value of their property.   Home Reversion plans allow homeowners to sell all, or part of their property to a reversion company in return for a lump sum, or a regular annuity income for life. The loan is repaid on the death of the policy holder when the property is sold and any remaining equity goes to the estate. Both Lifetime Mortgages and Home Reversion plans are regulated by the Financial Services Authority (FSA), and therefore offer borrowers a degree of protection.

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