Equity release
Equity release is about allowing you to release some of the value of a major asset to help you pay for your retirement or for a major expense. If you own an asset such as a home or other property, and you either can't or don't want to raise cash by actually selling it, some form of equity release may be a suitable way to make money available so you can use it for other things. This section looks at the different types of equity release, and helps you decide whether it's the best option for you.
In this section, you'll find the following information:
- Introducing equity release
Find out more about equity release and the Retirement Commissioner's views on such products. - Main types of equity release
Information about common equity release products, including reverse mortgage, rates deferral and reverse annuity mortgages. - Other types of equity release
An introduction to some other equity release products, including reversion plan, loan reinvestment, sale/leaseback and shared appreciation mortgage. - DIY options
If you don't like the sound of equity release, other options include renting, subdividing, trading down or selling to your family. - Is equity release for you?
Get help deciding whether equity release is for you and what type of equity release would best suit your situation. - Costs
Find out all about the costs involved with equity release, including those associated with buying and selling, interest rates and getting advice. - Impact on government benefits
Find out which government-provided benefits can be reduced if you have other income under equity release. - Other things to consider
You'll need to consider other factors, including the flexibility of the product, the security of the provider and the associated risks. - Checklists
Our handy checklists let you know what to expect from your adviser, and offer questions to ask providers when you're considering equity release.
An asset is a useful or valuable person or thing. In financial terms it's an item that can be converted into cash such as bank deposits, shares or property.
A type of investment where you pay a lump sum at the start, and receive regular payments (say monthly) for the rest of your life. Some annuities will continue for a minimum period, normally 10 years. You can also take out an annuity that is dependent on both your life and that of your partner's. Often the level of payment would reduce on the death of the first person. Normally the annuity payment is for a constant amount. It is possible to get an increasing amount to cover inflation, but it will cost more to purchase.
The amount of interest you pay on a loan or are paid for an investment, usually expressed in a percentage.
A company such as a bank, finance or insurance company that creates and provides insurance, mortgage, banking, savings or investment products.
A person who sells financial advice and/or products. They include financial advisers, insurance agents, planners, sharebrokers, mortgage brokers and bank managers or agents. They may be salaried, paid a commission or have an hourly rate.
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