Equity Release schemes can be a great way to utilise the value locked away in your home. Equity release plans are used for many reasons from supplementing income in retirement, inheritance tax planning, and paying off an interest-only mortgage to releasing a lump sum of money from your home.
Some plans allow you to make the interest payments, others roll it up, so you have no monthly commitment. If the interest is rolled up and accumulated (compounded interest), the mortgage balance will start growing exponentially, something that needs considering before making a decision.
The two main types of equity release plan are Lifetime Mortgages and Home Reversion Plans.
Applicants need to be at least 55 years old to qualify for an equity release scheme. We would typically recommend equity release to clients in their 70s as Retirement Interest Only (RIO) mortgages may be more suitable between the ages of 55 and 70. We are happy to help with advice if you have any equity release query.