Disclaimer: Our website and publications aim to give you general information to help you make financial decisions. It is not advice, nor can it take account of your own particular circumstances. For advice with a view to making decisions about your own circumstances you should consult a financial or other professional adviser.

© The Financial Services Authority.

Types of equity release

There are two main types of equity release scheme:

  • lifetime mortgages; and
  • home reversions.

They work differently and are quite complicated, so you may want to get some professional financial advice.

If you do choose to get advice, always make sure that the firm you use is on our Register and is allowed to advise on these schemes before handing over your money. If they aren't regulated by us and things go wrong, you won't have access to complaints and compensation procedures. To find out if a firm is on our Register, see Check our Register.

What we expect firms to do

Firms selling equity release schemes must ensure that adverts, product brochures and other promotions are clear, fair and not misleading. So:

  • the advantages and disadvantages of particular features have to be equally stated;
  • with lifetime mortgages the firm must give the annual percentage rate (APR) whenever it provides any price information; and
  • if there's a fee for advising on or arranging your lifetime mortgage, the actual or typical fee must be quoted.

If you think an advert doesn't meet these standards, then we'd like to hear about it. You can report it to us at Report a misleading advert.

Firms will give you some documents marked with this sign Keyfacts logo that set out important information for you. The information is in a standard format so you can compare products and services from different firms quite easily. They are:

  • Keyfacts logoabout the firm's equity release services – which tells you:
    • about the service the firm can offer;
    • if it offers lifetime mortgages, home reversion plans, or both;
    • whether it offers advice or just information; and
    • how much you’ll have to pay for the service.
  • Keyfacts logoabout this lifetime mortgage or home reversion plan which will be tailored for you and will tell you:
    • how much you want to release;
    • the overall cost;
    • what you'll pay each month, if there are monthly repayments; and
    • what happens if you don’t want it any more.

Do read them and ask questions if anything is not clear to you. For more information about getting advice, see Getting help.