Types of Equity Release Schemes Return to all services
There is a range of equity release schemes available on the market offered by reputable equity release providers, and they fall into two main categories:
- Lifetime Mortgages
- Home Reversion Plans
Each type of equity release scheme facilitates a different method of releasing the equity in your home, and there are various other useful features available to create the ideal equity release scheme for you, including:
Many equity release schemes come with a no-negative equity guarantee, and in some cases there are plans which also enable you to protect a fixed share of the value of your home. For example, if you protected a 30% share in your home, you have a guarantee that a minimum of 30% of your property value is protected for you in later life or as inheritance for your beneficiaries.
Some providers will allow you to release more capital from the equity release scheme if you suffer from one of a list of health conditions.
Many equity release schemes allow you to release the equity in the form of an income, by releasing the capital in staged payments over your lifetime.
There are some equity release schemes available with a pre-agreed 'cash reserve'. Like an overdraft, this is a facility which allows you to draw-down cash whenever you wish, so it's ideal for generating funds when required for home improvements, maybe a new car, a special holiday, etc. Interest is only added to the amount drawn, so they can work out much cheaper than other types of equity release schemes, depending on your needs.
Flexible Drawdown is a complicated area with both advantages and disadvantages. Please review the dedicated section on this subject within the Equity Release area.
The initial advice it provided at our expense and without obligation to proceed. You will only incur a fee if you decide to go ahead and we do not ask for payment until the equity release completes. We can be paid by commission, a fee or a combination of both. Our typical fee is £995
EQUITY RELEASE PRODUCTS INVOLVE BORROWING AGAINST OR SELLING PART OF YOUR HOME. THERE MAY BE MORE SUITABLE METHODS OF RAISING THE FUNDS YOU NEED.
LIFETIME MORTGAGE CAN QUICKLY ERODE THE REMAINING EQUITY AND AS A RESULT THERE MAY BE NO VALUE LEFT TO PASS ON.
EQUITY RELEASE MAY REQUIRE A LIFETIME MORTGAGE OR HOME REVERSION PLAN. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.
For customers who are moving house or re-mortgaging we typically charge a fee of £295 in addition to any commission we receive from the lender.
Our fees range between £0 and £995 depending on your individual circumstances. We will let you know our fee before you agree to use our service. Some examples of where our fees vary from the typical charge are detailed below. These are in addition to any commission received:
- If you are buying a New Build property other than a shared ownership property, or with equity release we will not charge a fee.
- For Shared Ownership New Build purchases we charge a fee of £99.
- For Equity Release we charge a fee of £995