The Retirement Home Plan is a really good alternative to an equity release scheme. It differs in that customers must still pay a small monthly contribution.

The plan is essentially an interest only lifetime mortgage and the repayments cover the interest. This is beneficial in the long-term as it means the balance owed does not grow, as it would with an equity release scheme. There is an element of manageability with the Retirement Home Plan.

Up to 75% of a property's value can be accessed using the plan. A good way to gauge how much you would be able to access is to use the Halifax affordability calculator. This device allows you to input the relevant data and gain an idea of both your eligibility and also the amount you could access. It is also possible to incorporate existing mortgages within the plan.

Before committing to any such scheme it is important to seek independent financial advice. Ask for a personalised illustration of your mortgage and any necessary repayments. Just because you can access a large amount does not mean it makes the most financial sense. Also make sure that you fully understand how much the contributions would be on a monthly basis and also what will happen in the event of either a drop in the housing market or alternatively a sizeable increase.

Also bear in mind that having such a charge against your property will affect how much you are able to leave as an inheritance to your family members.