What Is the Difference Between an Equity Release, a Lifetime Mortgage and a Home Reversion? 

When it comes to making the decision about how to release equity from your home, there are a few options available. You can take out an equity release, lifetime mortgage or home reversion. But what’s the difference between these products? Here we take a look at the key differences. 

What is an Equity Release? 

An equity release is a loan that is secured against your home. The loan is repaid when you die or move into long-term care. You can take out an equity release at any age as long as you own your own home and have some equity tied up in it. 

What is a Lifetime Mortgage? 

A lifetime mortgage is a type of equity release. The loan is secured against your home and is only repaid when you die or move into long-term care. This is a form of mortgage that can be taken out. There is no fixed term and no monthly repayments to make. But most plans allow you to make partial repayments if you want to. 

What is a Home Reversion? 

A home reversion is another type of equity release. With this product, you sell a percentage of your home to a home reversion provider in exchange for a lump sum of cash or a regular income. There’s no interest to pay on the money you receive, and the loan is only repaid when you die or move into long-term care. 

So, what’s the difference? 

The key difference between an equity release, lifetime mortgage and home reversion is how they are structured and repaid. With an equity release, the loan is secured against your home and is only repaid when you die or move into long-term care. A lifetime mortgage is a type of equity release, but with this product, you have the flexibility to make partial repayments if you want to. A home reversion is another type of equity release where you sell a percentage of your home in exchange for cash. 

When it comes to deciding which product is right for you, it’s important to consider your personal circumstances and needs. Speak to a financial advisor to get expert advice on which equity release product is right for you. 

Equity Release, Lifetime Mortgage or Home Reversion: Which Is Right for You? 

The right mortgage for you will depend on your personal circumstances. If you’re looking to release equity from your home, you have a few options available to you, including an equity release, lifetime mortgage or home reversion. 

Each product has its own advantages and disadvantages, so it’s important to consider your needs before making a decision. 

Frequently Asked Questions 

What are the key differences between an equity release, lifetime mortgage and home reversion? 

The key difference between an equity release, lifetime mortgage and home reversion is how they are structured and repaid. With an equity release, the loan is secured against your home and is only repaid when you die or move into long-term care. A lifetime mortgage is a type of equity release, but with this product, you have the flexibility to make partial repayments if you want to. A home reversion is another type of equity release where you sell a percentage of your home in exchange for cash. 

How do I decide which product is right for me? 

When deciding which product is right for you, it’s important to consider your personal circumstances and needs. Speak to a financial advisor to get expert advice on which equity release product is right for you. 

What are the advantages and disadvantages of each product? 

Each product has its own advantages and disadvantages. An equity release may be right for you if you’re looking for a lump sum of cash that can be used for any purpose. A lifetime mortgage could be a good option if you want the flexibility to make partial repayments, and a home reversion may suit you if you’re looking for a regular income. 

We Can Help 

Our team of expert advisors are on hand to help you find the right mortgage for your needs. We’ll take into account your personal circumstances and needs, and provide you with impartial advice on which product is right for you. We provide free quotes with no obligation to proceed. Get in touch today to find out more.