Like a traditional mortgage, an Equity Release Mortgage is a loan secured against the value of your home. It can be very flexible, with the most popular schemes enabling you to draw down funds only when needed and giving you the option of making voluntary or partial repayments towards your loan when you can.
Interest is charged on what you have borrowed, and this can either be repaid through monthly/ad-hoc payments or rolled up and added onto the loan. When you die or move into long-term care, your home is sold, and the money made from the sale is used to pay off the loan with the remaining amount forming part of your assets or your estate.
It is crucial for you to ensure the rights to your property are not compromised by the scheme you are considering and that the scheme is appropriate to your circumstances. If not, your home could be at risk, or you could end up owing more than you are able to pay back.