Equity release, lifetime mortgages and home reversion plans

Equity release schemes are a way for homeowners to generate a lump sum by re-mortgaging if they have enough equity in their property. It is particularly common among older property owners who wish to free up some cash to help them in their retirement.

There are two types of equity release schemes. Firstly through a lifetime mortgage which allows homeowners to borrow against their property and defer the interest payments until they die or sell their home. The second type of equity release scheme is called a home reversion plan which allows homeowners to sell some of their property to a third party.

	LV= cuts rates on lifetime mortgages An interest rate cut has been announced for the lifetime mortgages offered by equity specialist LV=.
	LV= cuts rate on its lifetime and flexible lifetime mortgages LV= has announced that it will cut the rates on their lifetime and flexible lifetime mortgages for the second time this year as a result in a fall in the wholesale rates.
	The Co-operative Bank launches lifetime tracker mortgages The Co-operative Bank is set to introduce a new range of lifetime tracker mortgages tomorrow, in addition to reducing rates across its wider home loan range.
	Lifetime mortgages: Don't bank on equity release Homeowners pinning their hopes on investment in their property to fund their retirement may face disappointment, new analysis shows.
	Nationwide culls interest-only mortgages unless you have 50% equity The Nationwide Building Society will only advance interest-only mortgages to borrowers if they have 50 per cent equity in their homes.