What is the difference between a Lifetime Mortgage and a Home Reversion Plan?
The main difference between a lifetime mortgage and a home reversion plan is when you take out a lifetime mortgage you retain ownership of your home. With home reversion plans, you sell a share of your home in exchange for a lump sum of money or a lifetime of regular income.
The other difference is that with a lifetime mortgage, a fixed interest rate is agreed at the time you take out the plan. This interest builds up as compound interest over the years. With home reversion plans, there is no interest to pay as it is technically not a loan. However, if your property increases in value, you will only benefit from the increase in value of the proportion you still own.
We do not provide advice on home reversion plans.