Lifetime mortgage or home reversion?

Keep on living in your home while releasing the equity in it

A home equity loan will either be a lifetime mortgage or a home reversion plan. There are variations within in these types of home equity release.

Home equity release involves getting cash by accessing the equity in your house.

Remember, your home may be repossessed if you do not keep up repayments on your mortgage.

Lifetime mortgage quick facts

• Borrow against the value of your home; the balance of the home equity loan will be paid off when the house is eventually sold

• Receive a cash lump sum

• Repay the mortgage while you are living in your home

• Continue to own your home and be responsible for maintaining its good condition

Click here to find out more about lifetime mortgages

Home reversion plan quick facts

• Your home is purchased by a home reversion company

• You continue to live in your home for the rest of your life or until you move out (into a care home for example)

• You are responsible for the maintenance of your home’s good condition

Click here to find out more about home reversion plans

Financial advice

Home equity

Home equity release is a complicated area of personal finance. It is highly advisable that you seek independent financial advice before entering into a home equity release scheme. Even then, it is vital to shop around to make sure you find the best type of home equity credit for you.