Equity release mortgages

There are two types of equity release schemes: lifetime mortgage and home reversion and both types permit the user to remain in the property until he either goes into long term care or dies.

The majority of equity release schemes involve homeowners taking out a lifetime mortgage to provide a cash lump sum, a facility permitting a series of drawdowns, or an income for life as a means of boosting retirement income. Many now also use equity release schemes to fund aspirational desires such as home improvements; a world cruise; or to helping children or grandchildren start on the property ladder. Another major use of equity release is debt repayment.