Equity release is increasingly becoming a crucial part of retirement planning. Retired individuals can use this option to make their retirement more luxurious and comfortable. Equity release allows you to unlock the equity from your property as a regular income or as a lump sum amount, or both.
Equity release schemes also allows individuals to stay in their property until they move out or have passed away. Two different types of equity release schemes are available with numerous variations.
Lifetime mortgages and home reversion are two options you can choose from.
While home reversion involves selling a part or complete ownership of your home, lifetime mortgages involve taking a completely new loan secured on your home. In return, both options will pay you a monthly and/or lump sum income.
What purpose can equity release loans be used for?
Equity release loans can be used for different purposes depending on your requirements.
You can use it to:
- Pay off a mortgage
- Top up your retirement income
- Purchase a holiday home
- Make home improvements
- Help your relatives and children to purchase a new property
What is lifetime mortgage and home reversion?
Lifetime mortgage equity release schemes allow you to take a new loan that is secured against your property. You do not need to make any repayments and you can still continue living in your home. On the other hand, home reversion allows you to sell full or a part of your property. After the borrower passes away, the property is sold and thus the loan amount is recovered.
For further advice, contact the Equity Release Supermarket team on 0800 678 5159.