If you are currently contemplating equity release schemes as a means by which to supplement your income during retirement, you will be aware by now that there is a lot of variation in this particular area of the market.

Indeed, equity release is something of an umbrella term, and there are several different types of policy included beneath it. However, while there are variations between each of these, there are also certain features that remain steadfast throughout.

Fundamentally, every equity release scheme allows you access to the capital that is locked up in your home, while at the same time ensuring that you can continue to live in the property as long as you need to. In addition, because the policy is designed to come to term at a time beyond your projected lifespan, you will not be required to make conventional monthly repayments.

However, if you choose, you can opt for an equity release scheme in which monthly repayments are made. There are several variations of these, and the most popular ensure that all of the interest accumulated on your loan is paid off before it comes to term. This precludes the possibility that the value of the loan exceeds the value of the property securing it.

In short, the decision to choose between an equity release policy in which repayments are required, and one in which these are not relies solely on what you can afford. Be sure to ground whatever decision you make in plenty of research and careful investigation.