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These are two terms we’ll mention a lot here. They’re similar but not quite the same. Equity release is when you take cash out of the home you own without having to move. A lifetime mortgage is the most common type of equity release, and the kind we offer.
And if you’re unfamiliar with the language of equity release, look up any terms you don’t understand in our equity release glossary.
It’s a long-term loan secured against the value of your home, which you can apply for any time after you turn 55. You’d borrow a cash lump sum, but there are no monthly payments. Instead, interest builds up for as long as you have the mortgage and is charged on the total amount borrowed and the interest already added. This quickly increases the amount you owe.
When you (and your partner, if you’ve taken it out jointly) pass away or need to go into long-term care, subject to our terms and conditions, the loan and any interest that’s built up is paid back – normally using money from selling your home.
You need to know that taking out any type of equity release means you will leave a lower amount behind to loved ones. It may also have a tax impact and affect whether you can still claim certain welfare benefits.
Our free guide has more details that will walk you through the benefits and risks of the lifetime mortgage we offer.
