Equity Release Schemes UK

Equity Release Schemes UK

Equity release schemes UK refers to mortgage products specialised for mature individuals currently living in the UK, looking to obtain a substantial amount of capital, or generate an income. The process works through individuals securing a loan onto the value of their property, in exchange for a cash sum or income. Individuals must be over 55 to be eligible for equity release schemes UK packages. Our expert advisers aim to find the most suitable and cost-effective equity release schemes UK for all our clients.

An equity release arrangement is terminated on the basis of the borrower’s death, or if the borrower has taken up residency at a care home without the intention of returning. Equity release schemes UK are available as two main products; lifetime mortgage equity release schemes UK and home reversion equity release schemes UK.

Lifetime mortgage equity release schemes UK deals entail the borrower paying off the mortgage when the contract ceases. The borrower collects a cash sum and sustains ownership of their house.

There are three separate lifetime mortgage equity release schemes UK options available, with interest only schemes being the first. The borrower makes mandatory monthly payments of interest to the provider, as the mortgage is repaid at the end of the arrangement. Interest rollover schemes enable the borrower to repay interest along with the mortgage at the end of the contract. However, if interest rates are variable, interest is still calculated on a month-to-month basis and added to the sum of the mortgage debt. Home income plans allow the borrower to purchase an annuity to provide a lifetime income, which allows them to repay monthly payments of the mortgage, as well as interest.

Benefits of lifetime mortgage equity release schemes in the UK include the borrower being able to sustain ownership of their own property. This serves advantages because the borrower can make future plans in regards to the property, allowing equity to remain in the property, which their beneficiaries can benefit from. However, equity may be drastically reduced as increasing interest rates may consequence in a rapid increase in debt. This will result in a smaller amount of equity for the inheritors of the borrower to profit from. With the support of our specialist advisers, our clients will build up the self-assurance to choose suitable equity release schemes UK products.

Home reversion equity release schemes UK packages ensure that the borrower does not need to issue monthly payments to the provider of equity release schemes UK. In addition, the borrower is promised lifetime residency to the property. Full home reversion equity release schemes UK products enable the provider to obtain a 100% share in the borrower’s property, whilst part home reversion equity release plans enable both parties to a proportion of the properties share.

Home reversion equity release schemes UK products may work to the borrower’s advantage, as the borrower is guaranteed a home for the remainder of their life. What is more, the borrower does not need to repay any monthly mortgage payments back to the provider, so the income can be used as the borrower wishes. However, the borrower will lose ownership of the property, preventing them from future planning in regards to the home.


The set up of equity release schemes UK may include a number or risks. Our specialist advisers make it their responsibility to dedicate themselves to each unique client and search for the most resourceful and cost effective scheme by determining the client’s current financial stature, along with what they hope to achieve from the arrangement of equity property release schemes UK packages.

Contact our advisers today if you have any equity release schemes UK.

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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.