What are the different types of equity release?

Equity release plans have evolved to such an extent that today’s clients can choose from a number of different types of plans to meet their individual needs.

Here are the main types of equity release plans, all of which are available through Bower Partnerships:

• Lump sum lifetime mortgage: A conventional equity release plan enabling your client to unlock a single lump sum to spend in any way they choose.
• Drawdown lifetime mortgage: Allow clients to take an initial lump sum with access to further withdrawals from their ringfenced fund as and when required.
• Enhanced: Enables access to a higher loan-to-value if your client has one or more qualifying health or lifestyle conditions.
• Protected: If your client wishes to guarantee an inheritance for their loved ones, then they can select a fixed amount or a percentage of their home to be left to their beneficiaries when their plan comes to an end and their home is sold.
• Interest-only: Clients may choose to pay their interest off each month, with the option to switch to roll-up at any time.
• Capital repayment: These allow clients to pay off up to 15% of the total loan amount each year without incurring any Early Repayment Charges (ERCs).
• Home Reversion Plan: Allows your client to access all or part of the value of their property while retaining the right to remain in it, rent free, for the rest of their life (or until they move into long-term care).

As experts on all the different types of equity release plans, we are fully equipped to advise your clients on each of the equity release options available.