Equity release is a tax-free mortgage loan that you can take out against the current value of your home. It is a lump sum paid to you at once or as installments.
- Lifetime mortgages are calculated against the value of your home.- Home reversion is when a part of the home is sold to a lender in exchange for a tax-free lump sum.
Only 1% of the market turns to home reversion as a lending option. So it’s safe to say it’s being superseded by plans such as drawdown lifetime mortgages.
Are Home Reversion Plans Being Superseded By More Flexible Mortgages?