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    • Sea Shell
    • By Sea Shell 16th Oct 16, 7:42 AM
    • 151Posts
    • 93Thanks
    Sea Shell
    How flexible can Equity Release be?
    • #1
    • 16th Oct 16, 7:42 AM
    How flexible can Equity Release be? 16th Oct 16 at 7:42 AM
    Not old enough just yet for this, but was wondering what is the most flexible solution on the market at the moment, and do you think there will be pressure in the future for even more flexible solutions to become available?

    Does such a scheme exist where you can set up to release a relatively small monthly "income" rather than a lump sum, just to make up any shortfall between Pension/Saving income, and preferred income level.

    e.g. you already have monthly income of say 1000 but you really fancy an extra 500-1000 for "a fun retirement" (no kids to worry about leaving anything to)

    Also would a scheme like this (if it exists) allow you to make re-payments, if you did come into a bit of cash in the future??

    I have had a bit of a Google, and not found much, but wondered if anyone had any personal experience.

    If nothing like this currently exists, i'm hoping that it might in the future. I'm sure they'd be a market for it. Sort of a Secured Credit Card that you don't have to pay back!!

Page 1
    • Thrugelmir
    • By Thrugelmir 16th Oct 16, 11:20 AM
    • 50,491 Posts
    • 42,231 Thanks
    • #2
    • 16th Oct 16, 11:20 AM
    • #2
    • 16th Oct 16, 11:20 AM
    Be an expensive product to administer if it were available. Given the money is not repaid paying unnecessary fees. Would be detrimental to the outcome. Better to release a lump sum and use this to guarantee a regular income.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
    • WillowCat
    • By WillowCat 16th Oct 16, 11:51 AM
    • 616 Posts
    • 697 Thanks
    • #3
    • 16th Oct 16, 11:51 AM
    • #3
    • 16th Oct 16, 11:51 AM
    I have also been wondering about this. I don't see why it would be expensive to administer - something along the lines of an offset mortgage so although you would apply for a particular sum at the beginning, you would only take the amounts you want, and have the flexibility of repaying when you want.

    Personally I would like the option to pay interest only rather than having interest roll up.

    Perhaps also being able at intervals - say 3 or 5 years having the option of reviewing the maximum sum to take account of increasing age and/or property price movements.

    I haven't found anything currently on the market either, hopefully by the time I would be looking at it (about 10 or 15 years away) something will be available.
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