Equity release is a way for homeowners to release cash from the equity that has built up in their home. Equity can be defined as the difference between the value of a property and the balance of the mortgage, or any other finance, that is secured on it.
There are several different methods of equity release available to homeowners. This can include releasing all or part of the equity they have built up in their properties either as a lump sum, a drawdown facility, or as a steady cash flow over time. There are two main types of equity release plans 0 lifetime mortgages and home reversion schemes. Both of these schemes are only available to home owners who have built up a sizable amount of equity in their properties.
A lifetime mortgage is a form of equity release whereby a mortgage is secured against a person0s home after redeeming all other finance secured on it. The equity release can occur as either a lump sum, a drawdown, or as a regular income over time.
With this form of equity release, no interest is payable during the term of the lifetime mortgage. The interest payments will instead roll up into the balance of […]

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