An Equity Release mortgage, is substantially different than remortgaging to release equity, where you achieve a lump sum in exchange for increased mortgage repayments.

An Equity Release mortgage does have a similar effect, in as much as it allows you to tap into the value of your home... the best of them allowing you to use some of the equity built up by the increasing house values, to augment your existing income or pension, whilst "rolling up" interest. Equity release schemes have become more popular, particularly if you are an asset rich/income poor home owner, who, perhaps, is no longer working and has a need to augment your income.

Apart from the boost to your spending power, by taking out chunks of equity, you "erode" the value of your estate. Probably no bad thing if your total assets are more than the inheritance tax threshold. You reduce your beneficiaries liability to the tax, in this way. You may even be able to erode the value of your estate, to the point where you render it below the inheritance tax threshold. In addition, if you take the equity in a cash lump sum, you pay no income tax. You must be cautious, however, of negative equity and our mortgage advisers will advise you of the implications of this and the precautions available with the different plans.

There are three main Equity Release Products that could be available to you. These are:

	Equity Release Mortgage Information
	Lifetime Mortgage
	This is probably the most popular form of Equity Release, mainly...
	Home Reversion Plan
	This involves you selling all or part of your home in return for ...
	Home Income Plan
	A type of reversion plan, but with the main difference being...

When considering an equity release mortgage, there are several issues that should be considered before taking the plunge and it is strongly recommended that you phone one of our mortgages advisers before deciding that this type of mortgage is the right choice for you.

For advice as to which equity release mortgage options are the right choice for you, please click this link.