Many of us who have lived through downturns in the property market will know and fear the phrase 'getting into negative equity'.
In housing market terms, this is when you are in the unenviable position that your home is worth less than the outstanding mortgage on it.
All the equity release plans we recommend have a no negative equity guarantee. This means you can't get into negative equity.
In the unlikely event that the amount required to repay your mortgage ends up being more than the eventual value of your property upon sale, your provider will cover the loss and will have absolutely no claim upon any other assets in your estate.
This ensures that you will never leave a debt to your estate from taking out equity release.
Providers who are members of Safe Home Income Plans (SHIP) are required to offer the same no negative equity guarantee.
Useful links
Types of equity release
Frequently asked questions