What is the difference between a reverse mortgage and equity release?

If you have ever been across the pond to the UK, you might have heard of the latest industry popping up known as equity release.What is equity release and what relevance does it have to reverse mortgages?

Well for those not in the know, a reverse mortgage is exactly the same concept as a lifetime mortgage, the mainstay of the equity release market.

The term ‘reverse’ comes from the fact that anyone seeking this kind of mortgage is a property owner already so is not looking to buy. Instead they are seeking to release the tied up equity in their home, effectively going back down the equity ladder. For more information check out equity release TV

Comments are closed.