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5 Point Financial Planning
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Types of Equity Release

Equity release products involve borrowing against or selling part of your home. There may be more suitable methods of raising the funds you need.

A Lifetime Mortgage can quickly erode the remaining equity and as a result there may be no value left to pass on.

Equity Release is a lifetime mortgage or home reversion scheme. To understand the features and risks, ask for a personalised illustration.

Types of Equity Release Schemes

There is a range of equity release schemes available on the market offered by reputable equity release providers, and they fall into two main categories:

  1. Lifetime Mortgages
  2. Home Reversion Plans

Each type of equity release scheme facilitates a different method of releasing the equity in your home, and there are various other useful features available to create the ideal equity release scheme for you, including:

Protected Equity

Many equity release schemes come with a no-negative equity guarantee, and in some cases there are plans which also enable you to protect a fixed share of the value of your home. For example, if you protected a 30% share in your home, you have a guarantee that a minimum of 30% of your property value is protected for you in later life or as inheritance for your beneficiaries.

Impaired Life

Some providers will allow you to release more capital from the equity release scheme if you suffer from one of a list of health conditions.


Many equity release schemes allow you to release the equity in the form of an income, by releasing the capital in staged payments over your lifetime.

Flexible Drawdown

There are some equity release schemes available with a pre-agreed 'cash reserve'. Like an overdraft, this is a facility which allows you to draw-down cash whenever you wish, so it's ideal for generating funds when required for home improvements, maybe a new car, a special holiday, etc. Interest is only added to the amount drawn, so they can work out much cheaper than other types of equity release schemes, depending on your needs.

Flexible Drawdown is a complicated area with both advantages and disadvantages. Please review the dedicated section on this subject within the Equity Release area.

Mortgage/Equity Release Enquiry
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Company address:
5 Point Financial Planning Ltd, Suite S4, Moulton Park Business Centre, Redhouse Road, Moulton Park, Northamptonshire, NN3 6AQ
T: 01604 497566
F: 01604 497567


Registration address as company address
Registration number: 4962087
Registered in: England

5 Point Financial Planning Ltd is an appointed representative of Intrinsic Mortgage Planning Limited which is authorised and regulated by the Financial Conduct Authority. Intrinsic Mortgage Planning Limited is entered on the FCA register ( under reference 440718.

The information and content within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Telephone: 01604 497566 |

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