If you are currently sourcing a good equity release plan, you would do well to consider plenty of advice for first time buyers. While a lifetime mortgage or home reversion scheme might appear a fantastic way to supplement your pension fund, you will invariably find that not every policy suits your needs.

Equity release is not without its pitfalls and conditions. To begin with, you will find that there are myriad criteria that must be met before taking on a new policy. Age is perhaps the most substantial of these.

Because this kind of scheme is designed to run beyond the lifetime of the borrower, you will need to be over a certain age in order to qualify for equity release. Usually the minimum limit is around about 60 years, however, in certain situations, many companies will allow their clients to hold a policy from the age of 55.

In addition, you will want to remember that the amount of capital you will be able to receive is based on the value of your home. This is determined according to the property itself, but prices of other, recently sold properties in your area are also taken into account. If these are not looking strong during the time in which you take out your policy, you will find that you are able to release less capital from your home than you may have thought.

In short, while equity release is an excellent means by which to supplement your income, it is not without its pitfalls. Make sure that you pay special attention to research when sourcing your policy; it might save you a significant amount of money in the long run.