Equity Release

Rather than derail the downsize thread has any one looked into these equity release schemes,I'm/we're not looking at it but you do see adverts,I suspect like most things where's there's money there's a scam.

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There must be a catch somewhere .

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Why give your home to a company when you die instead of to friends or relatives? if you don't desperately need the money then stay well clear.

These companies are worse than vultures waiting to pick over the bones of the dead.

have you notices how many vultures are keen on you passing on? they are the funeral payment vultures- the money to dependants vultures- the lifetime payment vultures and loads more. The TV adverts are full of them
That is not even including the money lending sea swimming vultures called loan sharks up and down our high streets. Or even the get rich quick vultures with the gambling adverts

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Funnily enough there's just been an advert on the TV and I read the small print which said that the minimum fee was nearly £1,500. Equity release doesn't interest me at all as we worked too hard to pay the mortgage and pay it off when the endowment policy didn't meet expectations. The house is the only asset we have to leave to our children, so no money grabbing firm is going to get their hands on it.

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Leia

Well said

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We are the same.

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its my hard earned money so hands off

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Not to be advised, from all accounts. Talking to a friend only yesterday, who has done it . Now she's worried about when she dies as her house will have to be sold to cover the debts, which will leave her son without a roof over his head.
Compound Interest accrues.

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You can be very sensible about equity release and the products have changed signiicantly over the last 3 years. There are those in retirement age who still have an interest only mortgage and no way of paying it off when there offer ends in a couple of years time. The banks have now come to realise this and are offering a lifetime mortgage which is that they carry on paying the interest only and when they die they will only owe the original sum.

I have been looking into switching my straight repayment mortgage over or if not possible to switch to an interest only equity release. For example I can release enough equity in the house say any figure lets take £30,000 and agree to pay interest only on that sum until I die or port it to a new property if I want to. If I always pay the interest then my initial sum borrowed remains the same. My house may go up in value but I would still owe £30,000 so that when I die this sum only would come from my estate to pay back the lender.
Basically I would be a lot better off a month with this than the repayment mortgage which I will not pay off for another 7 years and by that time I won't have enough energy to do what I want!
The interest rates have also fallen so that if you google you can get as low as 3.9% fixed rate.
If you are considering it it is well worth looking into either retirement mortgage or lifetime mortgage whichever suits your requirements.

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I've got nobody to leave the house to anyone. So some may say take the money and go on the razzle, wine; women; and song. But i think i'd have to be really desparate for cash before i'd even think about one of those equity release schemes.