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Financial Services > Mortgages > Questions > Equity release schemes

Equity release schemes

An equity release scheme allows someone who has paid off their mortgage in full to access some of the capital value of their house through receiving a lump-sum payment in exchange for the finance company taking a percentage of the value of the house. Although this has a number of advantages for people looking to raise extra cash, should the house and go up in value, equity release schemes can prove to be extremely costly.

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