Considering the wide range of equity release schemes, we have created a complete A to Z list of all the equity release schemes and also the related information. The list is going to help you take an informed buying decision with an objective of getting a peaceful post retired life. Home reversion schemes and lifetime mortgage schemes are the two broad categories covering all the equity release schemes.
Home reversion scheme lets you sell only a part of your property without losing your right to live in your house. After your death or after you move to a long term health care home, the lender sells your property and distributes the money received from the sale deed according to the share held by the lenders themselves and your beneficiaries. In order to be eligible for home reversion schemes, you must be at least 65 years of age.
Next in the list is lifetime mortgage under which you borrow money on the complete valuation of your house. You retain the rights to live in your home as in home reversion scheme but the lender holds full rights on your home instead of only a part as in home reversion schemes. Drawdown equity release, enhanced lifetime mortgage, interest repayment and lump sum equity release are the different sub categories of lifetime mortgage schemes listed in alphabetical ascending order.
Drawdown equity release is best for someone who want to create a cash reserve facility but want to withdraw money in parts as per their requirements. The scheme is beneficial because you don’t need to pay any interest on the cash reserve but interest is charged only on the amount withdrawn and used from the cash reserve. Enhanced lifetime mortgage scheme is best for someone who is suffering from any of the listed health issues because it lets you release more money on account of your reduced life expectancy.
Interest repayment schemes are helpful for those who want to leave some inheritance to their beneficiaries after their death. It allows the borrowers to make partial or full payment interest during the complete tenure of the mortgage. More2life and Stonehaven have interest repayment equity release schemes in the market. Lump sum loan scheme is best for someone who want to release the equity in one go to meet some one time big financial expenses.