Equity release schemes can be a boon for many people who want to make their retired lives more comfortable and financially secure, while keeping all their assets in their possession. Equity release schemes allow you to release or free some of the value of your property while continuing to live in it.

There are two main types of equity release schemes, and within these schemes there are a number of different policies and options designed to suit different people. The two main types of equity release are lifetime mortgage plans and home reversion plans.

The basic difference between lifetime mortgage and home reversion is that in one the payment received is a loan and a mortgage is set up against it and in the other, the payment goes towards purchasing a part of the home.

In lifetime mortgage schemes, the home is mortgaged and interest is built up on the loan amount. In home reversion equity release schemes, part of the property is sold in exchange for a lump sum. This percentage of the value of the property goes to the equity provider after the house is sold.

In a sense, home reversion schemes tend to be better for those who wish to make sure that their inheritance iS protected and something is left for beneficiaries. Since there is no loan, there is no danger of repossession of the house.