Q. What is equity release?
A. This is a general phrase for a loan of money taken out against a mortgage on a house to release to the owners a lump sum.

Q. What kinds of equity release are there?
A. There are several kinds of equity release. These include home reversion schemes, interest only mortgages, home income plans, shared appreciation mortgages and lifetime mortgages.

Q. Will this impact on my estate on my death?
A. Yes. The loan taken against your house, is a debt owed by your estate upon your death.  The different kinds of equity release have different consequences and some can affect your estate greater than others.

Thus, if you are contemplating releasing money from the value of your property, it is very important that you understand the likely consequences that may follow, and that you take independent advice, before proceeding.

Q. What is SHIP?
A. You should look for plans carrying the SHIP logo, which stands for Safe Home Income Plans. SHIP is a lending industry body set up to promote safe equity release schemes. Companies that are members provide a number of important guarantees.

Not all independent financial advisers (IFAs) or mortgage brokers are qualified by the FSA (Financial Services Authority) to advise on equity release schemes!

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