The four different types of regulated equity release plans are:
- Lump sum lifetime mortgages
- Lifetime mortgage with flexible ‘drawdown’ cash release
- Interest-only lifetime mortgages
- Home reversion plans
A Lifetime Mortgage allows you to unlock your equity in a single lump sum, or in smaller amounts over time up (drawdown) to the maximum limit agreed with the plan lender. You retain full ownership of your home and interest on the loan can be rolled up or repaid over the life of your plan.
It’s worth noting that some plans allow you to repay up to 10% of the outstanding loan each year. Or you can pay the interest monthly over the life of your plan thereby only ever owing what you initially borrowed.
A Home Reversion Plan also allows you to access all or part of the value of your property while retaining the right to remain in it, rent free, for the rest of your life (or until you move into long-term care).
You can find out more about these plans here on our website, in our free equity release guide or by arranging a free, no-obligation consultation with your local Bower specialist.
IMPORTANT TO KNOW
At Bower Home Finance, we will understand your unique circumstances and advise you to ensure you are receiving the best plan to meet your objectives. There are plans that allow you to make voluntary repayments and move home, subject to lender criteria. However, early repayment charges may apply in certain circumstances.
Bower Home Finance provides independent, impartial whole of market equity release advice with an award-winning customer service experience. Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed and your plan completes, would a typical advice and administration fee of £1,695 be payable.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care. Equity release will reduce the value of your estate and your entitlement to means-tested benefits now or in the future, and impact long-term care funding. If you are considering equity release, we strongly recommend that you read our Equity Release page carefully and talk to one of our specialists before deciding if you wish to proceed.
To find out more about any of the products and the service we provide, please call us on freephone 0800 411 8668, request a call back, email us, or use our live chat on our website.
Please be aware that equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. All features and risks are thoroughly explained in your free personalised illustration.