What does the term 'Equity Release' mean?

Equity Release' is a term that describes the release of some of the value of your property for your own personal use.

There are two very distinct types of Equity Release:

1. A remortgage to release cash using the value of your home.

2. A scheme designed for retired people so that they can either access a cash lump sum or receive a regular monthly income using the value of their home

If you are considering an equity release scheme - check first that the equity release company is a member of SHIP (Safe Home Equity Plans). SHIP protects your rights, ensuring that your right and the right of your spouse to live in the property for the remainder of your lives is protected. This is protection in case the equity release scheme fails for any reason.

Before either remortgaging to release cash, or joining an equity release scheme - seek independent financial advice because the process can be complicated. It may not be the best option for you.