Equity Release Types
Equity Release can be split into two primary categories: a House Reversion scheme, where you essentially sell a percentage of your home in exchange for a lump sum of money; or a lifetime mortgage, where you keep ownership of your home. Whichever scheme you decide to use to release equity, rest assured you can continue to reside in your property for the remainder of your life.
Here at Bright Retirement, you can expect expert equity release guidance on a full number of equity release schemes. Our experienced financial advisers can take you through the different plans which allow you to release equity from your home and will only recommend the scheme which is best suited to your individual needs. Contact us now to arrange your FREE, no obligation initial consultation!
Comparing Equity Release Plans
If you’re unsure which one may be right for you see the table below which details both lifetime mortgages and home reversion plans.
|Feature||Lifetime mortgage||Home reversion|
|You own your home||Yes||–|
|Receive a tax-free lump sum||Yes||Yes|
|You sell a share of your home||–||Yes|
|Drawdown the cash in smaller amounts as and when you need it||Yes||Yes|
|Advised on by Bright Retirement||Yes||Yes|
|Protect a percentage of your property/guarantee an inheritance||Yes||Yes|
|Specialist independent advice should be sought||Yes||Yes|
|Regulated by the Financial Conduct Authority||Yes||Yes|
|Entitlement to state benefits may be affected||Yes||Yes|
|The value of your estate is reduced||Yes||Yes|
|Interest accrues on the loan||Yes||–|
|Move and take the plan with you (subject to provider criteria)||Yes||Yes|
|Stay in your home for life||Yes||Yes|
|“No negative equity” guarantee||Yes||Yes|
|No monthly repayments to make||Yes||Yes|
|Option to make monthly interest payments||Yes||–|