Equity Release with Key Mortgage Solutions?

chattycathyuk

Mother in law has paid off her mortgage but owes £18000 in loans and credit cards.

She is a bit sick of having no money each month and is considering equity release and has found a company called key mortgage solution centre.

Her idea is to borrow about £50k pay off her debts and have some left over. She is going down the route of not paying interest and handing the house over at the end.

Any ideas on this guys, she has tried a remortgage but being 60 she's to old.

Do you think bankruptcy is a good idea or any reviews on key mortgage solutions?

thanks..

Ian_W

chattycathyuk wrote: »

Do you think bankruptcy is a good idea or any reviews on key mortgage solutions?

Can't think that bankruptcy is ever "a good idea"!! Best of a bad job or lesser of several evils would be a more appropriate way of thinking about it, I would have thought.

Equity release has had a very bad press over the years and is now more heavily regulated as a result. Have a look at SHIP website (stands for safe home income plans) and members must abide by a code of conduct including a no negative equity clause - the better quality side of ER if you like. I can't see the firm you mention on the members list so I would treat them with caution - as with everything she should shop around.

At 60 your MIL ain't going to get the best deal going as she's too young and the lenders, statistically at least, will have quite a long wait before the grim reaper allows them to collect. Some products now, I believe, allow drawdown with a sum to be agreed at the outset but then paid as a regular income which means the debt builds up slower.

One word of warning though, if your MIL finds herself in debt again 10yrs hence she may have shot her bolt as far as using her home as an ATM is concerned.