Release and Lifetime Mortgages

An equity release plan allows homeowners to release cash from their property in exchange for a percentage of the property’s value. This can be done either as a lump sum or as a series of regular payments. The homeowner retains ownership of the property, and the loan is usually repaid when the property is sold, typically after the homeowner has passed away or moved into long-term care.

A lifetime mortgage is a type of equity release plan that allows homeowners to borrow a lump sum or regular payments against the value of their property. Interest is charged on the loan, and the amount borrowed, plus the interest, is repaid when the property is sold. The homeowner retains ownership of the property, and the loan is usually repaid from the proceeds of the sale.