Equity Release mortgages may have had a bad reputation in the past and rightly so. In the late 80’s when residential mortgage rates hit 15.4% it was typical to see equity release mortgage providers quoting 2% above the cost of the standard variable rate mortgage, i.e. a whopping 17.4%!

However things have changed and today the UK equity release market is fully regulated. Both lifetime mortgage and home reversion plans now fall under the remit of the Financial Services Authority (FSA). So unlike products of the past the rates are fixed so the proposed debt is known at outset.

The equity release mortgage allows you to release a cash sum from your home without having to sell the property. This money can be used for your own purposes or to help children or grandchildren it also reduces the amount of inheritance paid by your estate and the amount the local authority can take to fund future care home costs!