What is Equity Release?

Equity is the difference between the value of your house and any outstanding debts you have on it.

Once you have finished paying off your mortgage and any loans on your home, equity is the total market value of your house.

Equity Release schemes will unlock this capital to raise funds. This can be achieved by either selling all or part of your home, or by borrowing money which would be repaid on the sale of your home.

You have the option for a full reversion scheme, which allows the homeowners to sell their home for a cash sum whilst retaining undisputed legal possession for their lifetime, either singly or jointly.

Alternatively you could get a partial equity release reversion. This allows the homeowners to sell a portion of their home, leaving the unsold portion to their beneficiaries.

You may wish to retain ownership of your home, so go for a scheme whereby you borrow money using your home as security.

For more information on Equity Release please see http://www.mortgageguide.co.uk and check out the mortgage articles.


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