There are two types of equity release scheme available in the market, with several variations on each. The lifetime mortgage involves taking out a new loan secured on your property, and the home reversion plan involves selling a share of ownership of your property.

Both types can work very well – but for most people one type is, on the whole, better than the other. Here are some of the things to take into consideration:

• How much money you can raise
• What will be left for your heirs
• The impact of dying earlier, or living longer, than expected
• The impact of inflation on your circumstances, including your income and the value of your property
• Whether or not you can move into a nursing home without having to sell your house
• How much more you can raise in the future, and at what cost  
• Whether or not you’ll be able to transfer the scheme to another house if you need to move at a later date, perhaps to be nearer to relatives