At any one time, there are over many equity release plans available in the market offered by reputable equity release providers.
They can be broken down into 3 main types:
- Lifetime Mortgages
- Drawdown Plans
- Home Reversion Plans
Each of the above is simply a different method of releasing the equity locked up in your home. There are also other useful features available;
Some of these features include;
Protected equity – All equity release plans that we recommend come with a no-negative equity guarantee, however some plans allow you to go further and protect a fixed share of the value of your home.
For example, if you protected a 20% share in your home, you have a guarantee that a minimum of 20% of your property value is protected for you or as inheritance for your beneficiaries in the future.
Impaired Life – Some providers will allow you to release more capital if you suffer from one of a list of health conditions.
Flexible Drawdown – New plans are available with a pre-agreed ‘cash reserve’. Similar to an overdraft, it is a facility that allows you to draw-down cash whenever you wish, if you wish to. Ideal for boosting income when required or for ad hoc purchases when they’re needed such as a new car, replacement boiler and so on.
As interest is only added to the amount drawn out, they can work out much cheaper than other types of plans, depending on your needs.