Whether you are nearing retirement or planning for the future, it can't have escaped your attention that pensions have fallen short of satisfying the financial needs of the UK's retired population in recent years. While property values are no longer racing ahead as they did, most people find their home is worth considerably more than they paid for it. The result of these circumstances is that we have a nation of pensioners who may not have much cash, but a lot of money tied up in their property.

If this applies to you, or a member of your family, you may be frustrated that you appear to be financial comfortable on paper, but don't have much money in your pocket.

This is where equity release comes in. If you are aged 55 or over, some lenders will lend you a sum of money against the equity in your home. You can receive this either as a lump sum or a regular income, and remain living in your home as long as you like. Also, you don't have to worry about making repayments on the loan for the rest of your life.

Equity release could improve your quality of life during your later years, but it can be complicated and it is vital that you understand exactly what is involved. There are lots of providers in the UK, so it's important not to miss out on the best equity release deals. You can contact an adviser through this website for FREE no obligation advice. 

A specialist equity release broker will research the whole market to find the most appropriate plan for you. Due to the sheer number of different products available, this is the only way you can be sure you're getting the best deal and best rates for your individual needs.

Types of equity release

There are two main types equity release scheme: lifetime mortgages and home reversions. The most popular is a lifetime mortgage, which is like an ordinary mortgage except that you don't have to make repayments every month. Instead the loan and interest is deducted in one go when you die or sell your home.

You can often borrow up to 30 to 40 per cent of the value of your home with a lifetime mortgage and the typical age of people doing so is 65 to 75. With a home reversion you actually sell your home or part of it to a specialist company, which then allows you to live there until you die or go into care.

You can generally sell up to 100 per cent of your home and people aged 75 or older can raise more cash, as their life expectancy is shorter. However, there are reversion plans around available to people aged as young as 50.

You should seek expert advice. There are many independent financial advisers who specialise in equity release, and they will be able to take a look at your individual circumstances and explain what the best options are for you. Don't be tempted to make a decision in your own. Many people have regretted taking out an equity release plan because they can be very inflexible, which can cause problems if your circumstances change.

One size definitely does not fit all with equity release - it all depends on your individual needs and circumstances.

Safeguarding your interests

Safe Home Income Plans (SHIP) is the industry body representing the vast majority of providers. SHIP's code of conduct means the market now conforms to standard principles that protect customers and encourage best practice across the field.

Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.