Equity release is a way to access some of the money tied up in the value of your home without having to move house.
There are different plans that allow you to release this cash, either by taking out a loan secured against your home, or selling a part or all of your home.
With either plan you get to stay in your home until you die or move into permanent care.
Depending on the plan, you can release the money as a lump sum or in instalments, and it’s up to you how you spend it. So, if you find yourself with equity in your home but limited cash to live as you’d like, it can be a solution.
The money you release will need to pay off any outstanding mortgage first. The rest is yours to spend as you wish.
A Lifetime mortgage is a loan secured on your home so you can stay where you are and keep ownership of your property.
You don’t necessarily have to make monthly payments. Instead, when you pass away or move into permanent care, your home is sold – and the loan and interest are repaid from the proceeds.