Equity release mortgages, sometimes referred to as 'reverse mortgages', are becoming a popular way for homeowners to tap into the biggest investment that they've made throughout their lives.

That investment is your home. For fifteen, twenty or even thirty years, you've made a monthly payment on your mortgage, adding to your equity in your home. You may have been lucky enough to have bought at a time when home prices were low - and you've seen your investment grow 2 and 3 and 4 fold. The house you bought for £40,000 in 1975 may be worth £150,000 or even £200,000 now.

If you're looking for a way to use the value in your home to enhance your life now, there are a number of ways that you can access the equity you've built up through years of paying your mortgage payment. You can sell your home, of course, and invest the money as you please. But that requires leaving the home you've lived in for years. You can refinance, and remain in your home, using the money as you please - but that saddles you with a new monthly payment to make.

The newest option is what's called an equity release mortgage. In essence, a financial institution makes cash advances to you on the promise that when you leave your home, either you or your heirs will pay back all the cash advances through the sale of your home. You remain in your home for as long as you wish, and continue to own it. You will continue to be responsible for any property taxes, homeowner insurance and any other fees. When the loan is over, you or your heirs must repay all cash advances plus interest.

The amount of your loan depends on the specific mortgage plan or program that you choose. It also depends on the kind of cash advances that you choose. Generally, the older you are, the more cash you can get. The more your house is worth, the more cash you can get. In most cases, the holder of the reverse mortgage will insist on being the primary mortgage holder. That means that they will want you to own your home free and clear of other mortgages. Occasionally, some lenders will accept a mortgaged home if the primary lender will agree to wait on repayment till after the reverse mortgage holder is paid.

An equity release mortgage is generally due when the last surviving borrower dies, sells the home or permanently moves out of the home. There are some common 'default' events that may call the loan into repayment. These include failure to pay property taxes, failure to maintain the home, failure to keep the home insured, declaration of bankruptcy, abandonment of your home or condemnation of your home.

You've put money into your home every month, taken good care of it and kept it in good shape. Now that you're older and ready to live - isn't it time that your home did something nice for you? An equity release mortgage can make it happen.