babybee Posted September 1, 2006 Share Posted September 1, 2006 Just wondering what people's views on equity release are. My Mum is in her early 60s and is a homeowner with no mortgage. She only gets the basic state pension, so doesn't have a lot of spare cash. The house is 30 odd years old now and is getting to the stage where work needs to be done. She would also like some money to be able to enjoy life a bit more. Does anybody know anything/have any experience of equity release? Good thing/Bad thing? Thanks in advance. Link to comment Share on other sites More sharing options...
Danny_Boy Posted September 1, 2006 Share Posted September 1, 2006 Depends on what the money is for whether she could afford the re-payments how much she wants to borrow against how much the home is worth and whether she would be better trying to get a low interest unsecured loan. Link to comment Share on other sites More sharing options...
Cyclone Posted September 1, 2006 Share Posted September 1, 2006 Equity release is just another phrase for borrowing money. Link to comment Share on other sites More sharing options...
Danny_Boy Posted September 1, 2006 Share Posted September 1, 2006 Equity release is just another phrase for borrowing money. With her home as security incase of loan payment default. Link to comment Share on other sites More sharing options...
El-Mariachi Posted September 1, 2006 Share Posted September 1, 2006 As Danny said, its really taking a loan. So it comes down to whether she can make the repayments. There are other schemes available, where you get cash and get to stay in your property until you die, after which the company "inherits" the place. Link to comment Share on other sites More sharing options...
natasha77 Posted September 1, 2006 Share Posted September 1, 2006 tell not to do it the best thing would be to down grade to a smaller home which is cheaper then she would get money back and still own her home outright Link to comment Share on other sites More sharing options...
matsalleh Posted September 1, 2006 Share Posted September 1, 2006 tell not to do it the best thing would be to down grade to a smaller home which is cheaper then she would get money back and still own her home outright Apart from this post (if this is an option) tell her to ignore the rest of these ill informed posts and to seek professional advice. Age concern (website) are very helpful and will provide her with many options that are available.They do not try to sell any plans they just state what is available.They will also put her in touch with a financial advisor if needed. This advice is all free but a solicitor who specialises in this is a must if deciding to proceed. Cheers. Link to comment Share on other sites More sharing options...
prioryx Posted September 1, 2006 Share Posted September 1, 2006 The secret is not to live too long. The interest mounts up every year, the loan never gets repaid and someone I know has ended up with nothing even though the house he had increased in value. If interest rates rise then you end up with nothing. Link to comment Share on other sites More sharing options...
matsalleh Posted September 1, 2006 Share Posted September 1, 2006 Just wondering what people's views on equity release are. My Mum is in her early 60s and is a homeowner with no mortgage. She only gets the basic state pension, so doesn't have a lot of spare cash. The house is 30 odd years old now and is getting to the stage where work needs to be done. She would also like some money to be able to enjoy life a bit more. Does anybody know anything/have any experience of equity release? Good thing/Bad thing? Thanks in advance. Is she claiming every thing she is entitled to? Pension Credit (can be done in your home and all forms are filled in for you) Council Tax Relief (is automatic if pension credit applies). Free Cavity Wall ands loft insulaton,will save a bit. Link to comment Share on other sites More sharing options...
Cyclone Posted September 1, 2006 Share Posted September 1, 2006 Apart from this post (if this is an option) tell her to ignore the rest of these ill informed posts and to seek professional advice. Age concern (website) are very helpful and will provide her with many options that are available.They do not try to sell any plans they just state what is available.They will also put her in touch with a financial advisor if needed. This advice is all free but a solicitor who specialises in this is a must if deciding to proceed. Cheers. what qualifies you to hand out advice on one hand whilst calling everyone else ill informed and advising that they be ignored? Link to comment Share on other sites More sharing options...
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