Significant increases in house prices, coupled with changes in family attitudes, mean more and more people* are finding out just how Equity Release schemes can improve their lives by:

• Improving their Income
• Fulfilling life-long ambitions
• Making home improvements
• Repaying existing mortgage or credit
• Helping family/ friends financially

Equity release

A way of unlocking the equity in your home to provide a cash lump sum, a regular income or a mixture of the two.

Introduction to lifetime mortgages

Now you can really make the most of your retirement with vital cash to spend exactly as you wish. Do not forget that inflation will reduce what could be bought in the future.

If you (and your partner) are aged 55 or over, and you own your own home you could be eligible for a lifetime mortgage and borrow a cash lump sum. The amount you can borrow will depend upon your age and the value of your property. Age limits and minimum property values apply. With a lifetime mortgage the loan and interest are repaid by the sale of your property when you die or go into long-term care. The interest charged throughout the term is calculated on the total of the amount borrowed and the interest already added, which quickly increases the amount you owe.

A lifetime mortgage is a commitment for the rest of your life and should not be used to get cash in the short term. If you choose to repay the loan early you may have to pay a large early repayment charge.

Introduction to Home Reversion Plan

A Home Reversion gives you a cash lump sum in return for selling part or all of your property to a reversion provider.

With a Home Reversion Plan you sell part, or all, of your home to a reversion provider. They pay out a lump sum at the start of the plan. However, because the money is provided upfront and you continue to benefit from living in your home, you will get less than the full market valuation of the property. When you end the plan, die or go into long-term care, the reversion provider will sell the property, take their share of the money and pay the balance, if any, to you or your estate.

If you choose to take out a lifetime mortgage the value you have in your property will reduce over time possibly to nothing. With a reversion plan the proportion of the value of your property you keep will immediately be reduced. Therefore, in both cases, you will reduce the amount of any inheritance you leave. Your tax and welfare benefits may also be affected.

This may be a lifetime mortgage or a home reversion plan. To understand the features and risks of either, ask for a personalised illustration.