How Does It Work?

An equity release provider will value your property and calculate the amount you can release based on factors such as your age and life expectancy. It is also important to consider any mortgage or other debt which is held against the property you own.

There are two main types of equity release plans available – lifetime mortgages and home reversions. Both types of plan allow you to remain in your home and unlock cash to be used for whatever purpose you require.

Lifetime mortgage - summary

• You borrow a lump sum of money or take an income at an agreed interest rate, or in exchange for a fixed charge.
• You will not normally make repayments on the money borrowed.
• The interest on your loan accrues and is only repaid - along with the total loan amount - once you die or move permanently into care. With some products you may be able to make interest repayments. 
• You continue to own your home and to benefit from any increase in its value.

Home reversion - summary

• You sell a percentage share of your home in exchange for a lump sum or income.
• There is no interest to pay because it is not a loan
• If your property increases in value you will only benefit from the increase on the proportion you still hold.

Just Retirement offers lifetime mortgages but not home reversion schemes.