Equity Release

What is Equity Release?

The best and easiest way to describe equity is the value of your home, minus any outstanding mortgage. The remaining amount is referred to as equity and many people choose to leave this equity tied up in their property throughout their lives. However, more and more people approaching retirement or in retirement and are now choosing to release equity from their property and convert it into cash. This can be used to fund one off purchases or to increase their standard of living in retirement. One of the most popular ways to release this equity is through an equity release plan as either a cash lump sum or regular monthly payments.

Equity release products available on the market place today have come a long way since their inception and have seen big improvements. All products now offered are fully regulated by the Financial Services Authority (FSA) and are more flexible than those on offer in the past.

There are two types of equity release available, "Lifetime Mortgages" or "Home Reversion Plans". Both schemes are regulated by the FSA.

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