Equity Release is the general term given to a variety of ways that a person can release equity in their property, if they are over the age of 55.
Most people who take out equity release use a Lifetime Mortgage, which is a mortgage secured on their property. Unlike an ordinary mortgage, the individual doesn’t normally make any repayments while they are alive and so instead interest is added to the loan and the loan amount and interest are paid back when the person either dies or moves out of the property permanently.
There’s a lot to be understood about Equity Release and it’s a decision that shouldn’t be taken lightly. There are many factors to consider and these are best done seeking financial advice from a qualified adviser.