Are there any restrictions on what I can do with the money I raise? 

No, you can use it for anything you like, but think carefully about how much you need to borrow. The more you borrow, the more interest will build up. This will increase the sum that has to be paid back to the lender when the property is sold.

What are the risks involved with equity release? 

These depend on the type of product you choose. For example, with a rolled- up interest loan, the amount you owe continues to grow in size and will usually double after seven to 10 years depending on the interest rate. The worst outcome is that there will be no value left in your home to pass on to your family. With a reversion scheme, you do not get the full market value of your home at the time it is sold and do not benefit from rising house prices.

Will I still own my home? 

Yes, if you take out a lifetime mortgage. But with a reversion scheme, the reversion company will own all or part of the property, although you can live in it for the rest of your life.

Will I be able to move house? 

It depends on the type of loan you choose. Many can be transferred to a new home, as long as the new property provides acceptable security for the loan and permission is obtained from the lender or reversion company . But if you are moving to a cheaper property, you may have to repay some of the loan and pay a charge to the lender.

What happens when I die? 

Your home will be sold once you and your partner have died. If you have a lifetime mortgage, the proceeds will be used to repay the amount left and any money left goes to your estate. If you have a reversion scheme, the reversion company will then own all or part of your property.

What costs are involved in taking out an equity release scheme? 

All financial advisers will give you two key facts documents. These one set out the service offered, its costs and the product range offered.

In addition they will provide you with a key facts document (often referred to as a KFI – Key Features Illustration) prepared specifically for you, summarising the important risks, features and costs involved.

What happens if I die soon after taking out the loan? 

That depends on the terms and conditions of your loan. Some lenders and reversion companies make charges if the loan is paid off too early, so check the details carefully and ask questions. Some reversion schemes offer a partial refund if you die within the first few years of signing up to them.

What happens to my partner if I die?

As long as the plan is in both names, the arrangements will continue with your surviving partner. 

What happens if my partner or I need long-term care?  

If one of you needs care in your home, this is not likely to affect the terms of your plan. Similarly, if one of you leaves to go into a care home, the other can continue to live in your property and your plan is not normally affected. However, the plan will normally end if both of you leave to go into a care home. You or your doctor may need to give medical information to the lender or reversion company in these circumstances.

What will happen to my home in these circumstances? 

If both of you go into permanent care, the house will normally be sold. For Lifetime mortgages any money left over after paying off the loan and interest would belong to you. If you have a reversion scheme, the reversion company will then own all or part of the property.

What happens if the value of my home falls? 

Nothing. The lender or reversion company takes this risk, as long as you have kept to the terms and conditions of the mortgage.

Can I lose my home?

Not normally, but you should ask the lender or reversion company if there are any circumstances in which they can take your home. If you have a lifetime mortgage, the lender should say clearly in the key facts illustration if there is any risk of losing your home.

If you have a lifetime mortgage where interest is rolled up, you cannot lose your home due to arrears (missed payments) as you are not making repayments. This would also apply even if the amount you owe is more than the value of the property.

Some lenders guarantee that your home will not be taken if you take out an interest-only loan. That means you can still live in your home even if you cannot continue to make the payments.

All mortgages have terms and conditions that must be followed carefully. If your loan involves you making regular payments, and you find it difficult to keep paying these, your lender will treat you sympathetically and positively. Lenders will always want to discuss any problems with you first to work out how they can best be solved.

All this depends on appropriate lender as per previous correspondence.

What about repairs and maintenance?

You will be responsible for all repairs and maintenance unless the lender or reversion company has a scheme with a repair and maintenance contract. Some lenders and reversion companies have lists of approved local suppliers who carry out repairs and maintenance to your property.

All this depends on the appropriate lender

What happens if I don’t want the equity release plan any more?

With a lifetime mortgage you can usually repay the amount you owe at any time but the lender may make an early-repayment charge. But if you sell all or part of your home to a reversion company, you cannot change your mind.

Will I be able to raise more cash from my home in the future?

Possibly, depending on the type of loan you have and whether there is still enough equity in your home. You would need to speak to the lender or reversion company.

Is there anyone else I can talk to?

Apart from lenders and financial advisers, you can also get advice from your local home improvement agency, a Citizen’s Advice Bureau or a local housing advice centre. You can also speak to a solicitor and should think about discussing your plans with your family.

What happens if I receive poor advice or choose a product that does not suit me? What rights do I have to compensation?

Firms selling all forms of equity release schemes are now regulated by the FSA which means they have to meet certain standards which they monitor.

You will have access to the Financial Ombudsman Service and the Financial Service Compensation Scheme if things do go wrong.