equity release

ellens

I am 58 year old widow of 2 years.
I have a house worth about £230,000 with a £50,000 morgage.
Ialso have a £17.5000 loan.
I was interested in equity release to release some funds.
is this a good idea?
Which company gives the best deal?
Thank you

koexelek

If you can afford to keep making the payments on the mortgage and the loan , I would do so, as you will eventually clear them.

The potential advantage of an equity release is that you don't have to make payments any more, but the interest will roll up and up, and your equity will be eroded.
If you have no dependents, you might not be bothered about that, but they might.
Equity Release is not something that should be undertaken lightly

Mips

when you release money via equity release, you have to be able to pay off the mortgage and any secured loans.

At your age you can only release approx 26% ( off the top of my head)

EdInvestor

ellens wrote: »

I am 58 year old widow of 2 years.
I have a house worth about £230,000 with a £50,000 morgage.
Ialso have a £17.5000 loan.
I was interested in equity release to release some funds.
is this a good idea?
Which company gives the best deal?
Thank you

You would need to use the equity release to consolidate your existing mortgage and loan, anything on top of that you could take either as income (cheaper, as the interest does not roll up so quickly) or as a lump sum.

Check out the issues and providers here;

www.ship-ltd.org

Different providers will offer different amounts and have different approaches to age (there are no regulations on this).Valuation of your property may be an issue in a falling market.

Check for penalties if you want to move later to a better deal with another provider, certainly a possibility at your age. Over the past few years we have seen interest rates fall on these loans as more competition moved into the market.

If you have no dependents, you might not be bothered about that, but they might.

There may be a conflict of interest in some cases.Your solicitor will advice you of what's in your own best interest.