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Compare Equity Release

There are two types of equity release; lifetime mortgages and home reversion plans. Both are regulated by the Financial Conduct Authority, requiring advice from a financial adviser with a special qualification in equity release.

Lifetime Mortgages

Hover to see the drawbacks

Benefits

Drawbacks

  • You retain ownership of your property

  • You can use the cash raised as you wish

  • No monthly payments are required

  • You are guaranteed lifetime occupancy of your property

  • The equity that remains in your property after your loan is repaid, is available to you or your beneficiaries

  • Interest rates are usually fixed for life, which can give protection against economic fluctuations

  • You can benefit from future house price growth

  • The debt may roll up quickly and erode the equity in your property, which can affect the legacy left to beneficiaries

  • Increases in capital or income from a lifetime mortgage may affect your right to state benefits

  • Younger borrowers are likely to see a higher level of rolled-up interest over their lifetime

Home Reversions

Hover to see the drawbacks

Benefits

Drawbacks

  • You can use the cash raised as you wish

  • No monthly payments are required

  • You are guaranteed lifetime occupancy of your property

  • You can elect to sell part of your property thereby retaining some equity which is available to you or your beneficiaries

  • There is no rolled-up interest

  • You lose all ownership of the property

  • You lose the right to any future growth in the property

  • The cash or income raised will not represent the true value of the property sold

  • If you pass away soon after the arrangement, the deal will have been very expensive

  • Moving home may prove difficult in the future

  • Increases in capital or income from a lifetime mortgage may affect you right to state benefits

Equity Release Explained is a trading style of JNS Financial Ltd, which is a limited company registered in Wales at 16 Station Road, Llanrwst, Conwy, LL26 0EP, under company number 11931412. JNS Financial Ltd provides access to a range of retirement services from specialist providers. JNS Financial Ltd is not regulated by the Financial Conduct Authority (FCA) and is not authorised to give financial advice. However, we are proud to introduce you to a panel of qualified, specialist financial advisers who are regulated by the Financial Conduct Authority, for all of your Equity Release, Mortgage and Protection requirements. For any introductions to advisers on our panel, they agree not to charge any upfront fees and a fee is only charged on completion of a plan, which is typically £1,495. JNS Financial Ltd may receive a referral fee for any introduction made. All information published on www.equityreleaseexplained.com is intended for consumers based in the UK as general information only, and does not constitute financial advice. Please contact JNS Financial on 01492 818526 for further information.

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