Equity Release Plan

Equity Release Plan

EQUITY RELEASE PLAN

An equity release plan is a solution sought by mature individuals looking to secure their long term financial future by securing a loan against their property. An individual must be over the age of 55 to be eligible to seek an equity release plan. Our advisers are specialised in devising an equity release plan, suited to the client’s personal and financial hopes and aspirations.

An Equity release plan is typically used to assist an individual’s financial income, in order for the individual to pursue lifelong fulfilments through travel, or as assistance to contribute to costs for care. Alternatively, an equity release plan may be used to support family member during periods of financial difficulty.

In terms of an equity release plan, there are two main forms; lifetime mortgage and home reversion equity release plan products. A lifetime mortgage equity release plan may come in one of three forms:

Interest only – The plan holder does not have to pay the full mortgage debt until the death of the plan holder occurs, however, interest rates are paid every month. Interest rates may either be fixed or variable.

Interest rollover – The plan holder is guaranteed lifetime occupancy without charge, although the interest accumulates on a monthly basis and this fee is added to the total sum of the mortgage debt.

Home income plan – The plan holder makes use of the income generated by the mortgage to purchase an annuity, providing a fixed income until they die or admitted to residential care indefinitely. The income from the annuity is used to pay off the mortgage and interest on a monthly basis. If the client requites further assistance in selecting between the three forms of lifetime mortgage equity plan release, our specialist advisers are experienced in evaluating which scheme best suits the clients needs.

An alternative equity release plan is known as the home reversion equity release plan. These schemes may be a suitable & affordable substitute for individuals looking to achieve increased equity, without detrimental effect to their financial future.  Home reversion equity release plans enable the plan holder to generate a large lump sum of money, along with guaranteed lifetime occupancy, in exchange for shares in their property. A full home reversion equity release plan entitles the provider to 100% worth of shares in the property, whilst a part home reversion equity release plan enables the plan holder to retain a percentage of the shares in their current property. The house is sold at a market price by the equity release plan provider, after the event of the plan holder’s death.

Obtaining an equity release plan does bring about a number of advantages on the plan holders behalf, such as the guarantee of lifetime occupancy for the plan holder. However, there are many limitations associated with equity release plan products, such as the potential debt which may accumulate from equity release plan products. In addition, individuals who are currently entitled for state benefits may be restricted to the amount they receive, due to increasing incomes in the form of annuities.


The prospect of arranging an equity release plan may seem demanding with many risks associated with this type of mortgage. That is why our specialist advice team are of assistance to those who are uncertain of which financial option to partake in.

If you are interested in obtaining an equity release plan, call our specialist advisers today.

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This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.