There are two types of equity release; Lifetime Mortgages and Home Reversion Plans. Both of these are regulated by the Financial Conduct Authority. By using an equity release product, a homeowner can draw a lump sum or regular smaller sums from the value of their home, while remaining in their home.
Equity release can play a crucial role in retirement funding, and the flexibility and safeguards which are built into plans that comply with the Equity Release Council product standards enable thousands of homeowners every year to tap safely into their housing wealth without having to worry about making monthly repayments.
If you are thinking of taking out an equity release plan, then you need to find out as much as you can about your options and weigh up the advantages and disadvantages thoroughly before you decide if equity release is right for you. A fully qualified financial advisor will help you to understand the steps involved and talk you through your options, the effects this might have on state benefits and tax and your obligations. And of course, they can also explain the full benefits of equity release. Done correctly, equity release should have no impact on an individual‘s tax position or their state benefits; however, each individual‘s circumstances need to be assessed.
Part of a customer‘s choice will be over the type of plan required. In the modern equity release market, there is a range of products to choose from, with new and innovative products being created regularly. This means that whatever your equity release needs, there is likely to be an equity release plan available to meet them.