According to Which? problems could arise if the circumstances of the borrower changes. Which? have also stated that taking out an equity release plan could affect means tested benefits. They highlight the fact that these type of mortgages, should only be used as a last resort.

Equity release plans allow borrowers to lend money on their home without having to move out. Borrowers receive a lump sum payment that is paid back to the lender on the death of the property owner(s).

Age Concern have a great information leaflet on home reversion plans/equity release which can be found here.