10 things you might not know about equity release

Equity release plans have transformed in recent years. You may be surprised at what they can now offer you!

1. Advice – you cannot take out an equity release plan without speaking to a qualified adviser.
2. Equity – you will never have to pay back more than your house is sold for when your plan comes to an end.
3. Repayments – You can make repayments and stop if you can no longer afford them or don’t want to pay them, without penalty.
4. Inheritance – you can guarantee an inheritance by ringfencing a percentage of your property value.
5. Moving house – you can move house and either take your plan with you (providing your new home meets lender’s criteria) or repay the money owed.
6. Whole of market – not all advisers compare plans from all lenders, so you need to check they are whole of market
7. Stay in your home – you can live in your home for life (or until you go into long-term residential care) and if you’re in a couple this applies to both of you provided you are both on the deeds of the property.
8. Rates – most rates are fixed for the life of your plan which means you will always know how much you owe.
9. Early repayment charges – these usually stop after 8, 10 or 15 years (depending on plan) so you can then repay your loan with no penalty.
10. Ownership – with a lifetime mortgage you still own your own home.