o/t House equity release

BFCPaul

BFCPaul

Well-known member
Quick question for the financial boffins. Me and the Missus both 55 this year, paid off mortgage, house worth about £350,000 and we have no kids. Pros and cons of house equity release?
 
I’d remortgage on mega low interest rate myself.Im no expert but equity release arnt doing it for your benefit ? but more for the desperate ones who can’t remortgage ! Only my opinion I’m no financial expert
 
BFCPaul said:
Quick question for the financial boffins. Me and the Missus both 55 this year, paid off mortgage, house worth about £350,000 and we have no kids. Pros and cons of house equity release?
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I’d be very carful & read the small print. It’s things like what happens if one of you die in the future of course. Have you considered downsizing as an alternative.
 
I agree, a part re-mortgage on low interest rates is more cost effective overall. Equity release does suit some people though who may not want to make repayments whilst they are still alive.
 
It’s much more expensive than re-mortgaging (Rates currently around 4-5%). Because you’re young in terms of equity release, they’ll only offer you a relatively small amount of your property value in order to protect their investment long-term.

Additionally, there’ll be a rather ‘grey’ clause in the agreement which will state that you have to maintain the property to a satisfactory standard. This means they can periodically inspect your property & effectively force you to carry out work to maintain the property to what they deem to be ‘a satisfactory standard’.

I’d avoid if you possibly can - it’s certainly not the ‘easy money’ the adverts would have you believe.

Good article by Martin Lewis here:
www.moneysavingexpert.com

Should you equity-release?

Release money from your home while still living there
www.moneysavingexpert.com www.moneysavingexpert.com
 
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