An overview of equity release schemes
Equity release schemes, simply put, allow you to release cash from your home to spend as and how you choose, with typically no monthly repayments to make. At present there are a variety of equity release schemes available on the UK market, all come with their own benefits and drawbacks. So how do you know which one to choose?
If you are considering equity release as your next financial move, it’s a good idea to read up on the different types of equity release plans so you understand how they work, before getting independent advice from a specialist equity release adviser.
Lifetime Mortgages
A lifetime mortgage enables you to take out a loan secured against the value of your home in exchange for a cash lump sum. This loan, plus all interest accrued is repaid in full when your property is sold, usually when you (and your partner) pass away or move into long term care…read more
Drawdown Lifetime Mortgages
A drawdown lifetime mortgage is similar to a lifetime mortgage, except this time you are able to draw down the cash as and when you need it. Interest is only charged on the amounts drawn down and repaid in full when your property is sold, usually when you (and your partner) pass away or move into long term care…read more
Interest-Only Lifetime Mortgages
An interest-only lifetime mortgage allows you to make monthly repayments on the interest accrued enabling you to reduce the amount you pay back to the provider when your property is sold, usually when you (and your partner) pass away or move into long term care…read more
Home Reversion Plans
This type of equity release scheme involves you selling all or part of your property to an equity release provider in exchange for a cash lump sum, plus a lifetime lease to remain in your property until you (and your partner) pass away or move into long term care…read more
Enhanced Lifetime Mortgages
An enhanced lifetime mortgage allows you to release more cash from your home than a typical lifetime mortgage would. Enchanced lifetime mortgages are also based on your health and lifestyle conditions.…read more
Learn more from an equity release adviser
With a range of equity release schemes on the market, it is recommended that you speak to an equity release specialist who can help you decide which one is right for you.
It may be the case that you are eligible for an enhanced lifetime mortgage scheme, which takes into account your health and lifestyle and may see you able to release more cash from your home. Book a free initial appointment with one of our specialist equity release advisers today to find out more. Through this appointment you will be able to learn more about how the different equity release schemes work, what plans are available to you as well as access to our latest exclusive equity release offers that we have secured with some of the leading equity release providers across the UK.
All our advisers at Key go through extensive training to ensure they are fully qualified to advise on all equity release schemes with accuracy and confidence. We’re the only equity release advisers to have such a thorough training programme that has been accredited by the Institute of Financial Services, School of Finance.
If you are considering equity release, please read through Is It Right For You? carefully.
