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What are the pros and cons of the schemes?

Advantages and disadvantages of a lifetime mortgage

You retain full ownership of your property.
You may be able to release further sums in the future.
The choice of a cash lump sum or income.
There are typically no monthly repayments to meet.
The plans are eligible for homeowners aged 55-95, with little or no outstanding mortgage.
There is the option to guarantee an inheritance with some plans.
There is a no negative equity guarantee with plans approved by SHIP (Safe Home Income Plans) This simply means the amount to be repaid on the loan can never exceed the value of your home.

The amount you owe can rise quickly with compound interest.
The younger you are, the amount you are allowed to release is reduced.
The amount you leave as an inheritance will be reduced and cannot always be guaranteed.
You may face early repayment charges if you wish to repay the loan early.
The loan company has first legal charge against your property.
Your entitlement to state benefits may be affected.

You only accrue interest on the amounts drawn down. Therefore the interest amount overall will be reduced.
You retain full ownership of your property.
This plan is very flexible allowing you to make withdrawals at different times.
There are no monthly repayments to meet.
The plans are eligible for homeowners aged 55-95, with little or no outstanding mortgage.
There is the option to guarantee an inheritance with some plans.
There is a no negative equity guarantee with plans approved by SHIP (Safe Home Income Plans) This simply means the amount to be repaid on the loan can never exceed the value of your home.

A limit is set by the equity release company on the maximum amount that you can withdraw.
You may be restricted as to the minimum amounts you can withdraw.
With subsequent drawdown amounts the interest rates can differ, as they are usually higher than on a standard lifetime mortgage.
The amount you leave as an inheritance will be reduced and cannot always be guaranteed.
You may face early repayment charges if you wish to repay the loan early.
The loan company has first legal charge against your property.
Your entitlement to state benefits may be affected.

You will receive a cash lump sum with no monthly repayments to make.
The cash amount available is likely to be higher than what is on offer from a lifetime mortgage, especially at younger ages.
You can retain a share of your property to leave as an inheritance for your loved ones.
Your heirs will benefit from house-price inflation on whatever proportion of the property you do not sell.
The older you get the more cash you could potentially release.
You are allowed to move house if you wish, subject to conditions.

You will not receive full market value of the proportion of the property you sell. This is down to the fact that there are no monthly repayments to meet, allowing you to live rent free for the rest of your lives. The reversion company has to wait many years before they are repaid.
Reversion plans cannot be reversed as you are effectively selling all or part of your home. You may be able to buy back the equity you have released, but only at market rates.
Your entitlement to state benefits may be affected.
The amount you leave as an inheritance will be reduced and cannot always be guaranteed.

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

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