Jargon Buster

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Health
Plan providers will normally offer you enhanced terms if you are in poor health, leading to reduced life expectancy. If you are in very poor health, an equity release plan may not be advisable, unless it is used to enable you to be cared for in your own home.

Home Income Plans (HIP)
This is a term used to describe a type of Equity Release product which provides an income via an annuity. See Mortgage Annuity.

Home Reversion
This is a method of releasing equity involving you selling part or all of your property (expressed as a %) for an income or cash sum. Ownership is 'reverted' to the plan provider with any remaining equity that is not to be released being written in favour of your estate through a Declaration of Trust. The Declaration of Trust specifies that your estate will receive the original % retained of the future net sale proceeds from the disposal of your property.

Homeowner Support
Plan providers can offer you different levels of support to after completion of an Equity Release plan. This may include personal visits to your home and/or telephone support, dealing with such matters as repairs advice, insurance claims, financial assistance with repairs and any issues surrounding moving house or into care.

This site is for UK residents only