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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

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