A lifetime mortgage gives you the freedom to access funds in a single lump sum, or over a period of time. The amount you can borrow will be agreed with the scheme provider beforehand. With a lifetime mortgage, you will still remain the owner of your home, but it will carry interest. You may choose to either make repayments or have the interest accumulate. The loan and additional interest will only be paid back when you pass away or move into long-term care.
With a home reversion plan you will be able to access financial help within a secure environment. You can decide how much of your home you want to sell, whether it's all or just part of it. Once the agreement is made, you'll receive either a lump sum or regular payments as specified by the company. You will still have full ownership of your home, and can continue living there until the end of your life, with no rent being payable. It's important to make sure you go through all the details thoroughly before entering into an agreement - and if necessary seek independent advice - so you know exactly what you are getting into in terms of commitments and responsibilities.
Equity release is a big decision and should not be taken lightly. Before going ahead with an equity release scheme, it's important to think about the implications this could have on your financial position now and in future years. In addition to potential changes in any benefits you receive, equity release can also impact inheritance tax, as any money received will generally be taken into account when calculating your estate's worth at the time of passing. You may also need to take into consideration how access to cash today could impact on your ability to fund long-term care costs later in life if required, or even just the lifestyle you hope to lead.
