Home > Equity release schemes > What is an equity release scheme?

What is an equity release scheme?

An equity release scheme is simply a way for you to release cash from your home to spend as you wish.

You typically qualify for an equity release scheme if;

• You are aged 55-95 (both partners, if couple);
• You own your own home worth at least £50,000
• You live within the UK (including Northern Ireland).

There are currently three types of equity release schemes on the UK market, all which work in different ways. These three equity release schemes are called;

• Lifetime Mortgages,
• Drawdown Lifetime Mortgages,
• Home Reversion Plans.

If you are considering an equity release scheme it is important that you consider a provider that is SHIP (Safe Home Income Plans) approved. SHIP is a governing body set up to ensure that you;

• Never fall into negative equity. This means that you will never owe more than the value of your home, and no debt will be ever left to your estate.
• Remain in your property for life, provided that the property remains your main residence.
• Are able to move your scheme to another suitable property without any financial penalty (subject to criteria).

This is an equity release plan. To understand the features and risks ask for a personalised illustration.

There are so many great equity release offers on the UK market making it difficult for you to choose the right one to suit your individual needs and requirements. By speaking to our partner, you will receive tailor-made impartial advice that you can trust.