Home reversion plans
Home reversion plans offer consumers the chance to access some of the value of their homes by selling some or all of their property to a third party.
They are sometimes known as equity release schemes.
The homeowner can remain in their property until they die or move into permanent care without having to make any payments.
The percentage of the property sold reverts to the finance provider on death.
The money released can be taken in a lump sum, or used to buy an annuity, which would provide an income for life.
Home Reversion plans differ from lifetime mortgages, which also offer older homeowners the chance to release some of the equity from their home.
With a lifetime mortgage, homeowners are effectively borrowing against the value of their home, with the interest payments deferred until they die or move into care and their home is sold.
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