Equity release lets homeowners access the value of the equity in their homes on a tax-free basis. Equity can be taken out in a lump sum or in smaller amounts over time, or a combination of both.
There are two main options of equity release, which is either through a lifetime mortgage (securing a loan against your property) or through a home reversion plan (selling a share of your home).
Whichever option you choose, you retain the right to keep living in your home.
The money taken out of your home must be repaid to the lender. This usually happens if you move into long-term residential care or after you have died.
As equity release involves securing a loan against your property or selling a share of your home, it should be considered carefully.
You should get professional advice and consult an independent financial adviser before making a decision.