Equity is the difference
between any mortgage you
may have and the value
of your home. Equity
release or lifetime
mortgage is a way of
unlocking the value of
your property, without
having to move or sell
your home. It is used
mainly by older
homeowners who either
have paid off their
mortgage altogether or
have only a small amount
left to pay.
You can release part of the value of your home to give yourself a lump sum or a regular income (or both). If you live in the property until you die, the money from its sale is used to pay the equity release ender before anything left over is paid to your beneficiaries. If you sell the property before you die, you repay the money you borrowed from the equity release mortgage lender. With some types of loan you might also have to make regular interest payments.
Equity release can also affect the amount you are able to leave to your family or other beneficiaries after you die, so you may also want to talk through your plans with them.
You can release part of the value of your home to give yourself a lump sum or a regular income (or both). If you live in the property until you die, the money from its sale is used to pay the equity release ender before anything left over is paid to your beneficiaries. If you sell the property before you die, you repay the money you borrowed from the equity release mortgage lender. With some types of loan you might also have to make regular interest payments.
Equity release can also affect the amount you are able to leave to your family or other beneficiaries after you die, so you may also want to talk through your plans with them.
