Equity Release Types

2 Equity Release Types to Help You Find the Perfect Way to Release Cash

Looking to Unlock the Key to Your Retirement Dreams? Look No Further! We've Got the Secret to the Best Equity Release Types Available in Dec 2021.

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Equity Release Plans

Our SovereignBoss readers often ask us which type of equity release plan would be right for them

With huge market expansion seen over the past few years, there’s more competition than ever, and in today’s world of equity release presents you with some serious options. Many of these features can be mixed and matched, giving you a custom, tailored, equity release experience.

We’ve broken down each option as simply as possible, to help you make the best decision for yourself and your family.

Let’s start with the later-life lending plans available on the UK market in Dec 2021.

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lifetime mortgage options

Lifetime Mortgage Plans

The most popular form of equity release is a lifetime mortgage, and as years go by, the industry keeps adding more flexible features

The most popular form of equity release is a lifetime mortgage, and as years go by, the industry keeps adding more flexible features.

Simply put, if you’re 55 or older and you select this option, you’ll have the opportunity to unlock cash tied into your home, while retaining 100% ownership of the property.

The loan, plus compound interest, is then repaid from the sale of your home when you die or move into long-term care.

There are a few options for lifetime mortgages. Let’s take a look!

What types of equity release plans are available and which one is right for me?

Interest-only lifetime mortgages

You’ll have the option to pay back the monthly interest that’s incurred on the loan, preventing the amount from compounding. This will drastically reduce what is owed on your final loan.
If you’re dreaming of growing your property portfolio, you can use the equity tied into your home. Investing in a buy-to-let property could be the answer you’ve been looking for.
You can unlock a once-off, large amount of tax-free income to be used in any way you wish. What’s more, you won’t have to make any loan or interest repayments in your lifetime.
Did you know that your poor health could positively impact your interest rates and the amount of cash you could unlock from your house? This is where an enhanced lifetime mortgage comes into play. It’s a fairly simple process.
Do you think that an interest-only lifetime mortgage might be the key to your retirement dreams? We’ll help you discover who you should turn to, to unlock one of these fantastic equity release plans.
You can use the cash tied into your first home to purchase a second home or holiday home for you to enjoy during your retirement years.
Payback up to 10% of the loan amount yearly, without incurring any early repayment charges. You’ll reduce the final loan amount, but not feel the pressure of necessary loan repayments.
You can reduce the total interest you’ll incur with a drawdown lifetime mortgage. Your funds will remain in a drawdown facility, and you’ll only pay interest on the increments you release.
If you need a regular income during your retirement, this could be the answer you’ve been looking for. You can use your home equity to receive a monthly, tax-free salary.

Other Ways to Borrow

While lifetime mortgages are the most popular, they aren’t the only answer. Here’s everything you need to know about other forms of later-life borrowing available in Dec 2021. 

Your financial adviser will be able to guide you on which plan could be best suited to your personal needs.

Home reversion scheme

You get the opportunity to unlock the equity tied into your home in exchange for selling all, or a portion of your estate. The lender will get their cut from the final sale of your home when you die or go to permanent care.

Retirement interest-only mortgage

You can release the equity tied into your home, only repaying the interest that incurs. The loan amount will be repaid from the sale of your home, once again, when you pass away or move to a care facility.

Later life mortgages

An umbrella term for various retirement mortgage options, otherwise known as later-life mortgages. There are myriad plans to consider in Dec 2021.

How Much Can You Release?

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Are You Considering Equity Release?

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HOW MUCH EQUITY CAN YOU RELEASE?

Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.

Use our free equity release calculator & see how much you can release today.

How Much Can You Release?

Use the FREE Calculator Below 👇

 

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As Featured In
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Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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As Featured In
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