Remorgage or not?

needmoney

I wasn't sure where to put this and I'm sure in terms of replies it's not a good day as the site wil soon be down but.

I am retired and my savings are being eaten into to supplement living espenses. My daughter has mentioned remorgaing my house which I own.
I can't even understand the saying as i haven't got a morgage anyway and can't see how it would benefit me as i am not paying a morgae now and would be if I did that, plus I would be worried about the security of my house.

I like the idea of getting some money to give me a better quality of life at my age, it's not a very valuable house50 to 65K perhaps.

If anybody could give me some sound advice I would be really grateful maybe some replies before the site goes down:beer:

EdInvestor

I suspect she means "equity release."

This involves borrowing money against the value of your house.The interest then rolls up until you die at which point the house is sold and the loan repaid.There is a guarantee of no negative equity.

More details here:

https://www.ship-ltd.org.uk

dunstonh

Its called equity release and is generally considered a last move to release some of the equity in your property to help with your finances.

It has some advantages but also some disadvantages. It can impact on pension credit and personal allowance so it isnt something you should do without researching it and/or getting professional advice.

However, do a search for equity release on web and you should get a basic idea.

needmoney

Thanks both but I don't think she meant ' equity release' I don't think my house is expensive enough for that to be worthwhile.


Yes there's also the pension credit being affected angle, catch 22. You live carefully, save etc and are doomed to almost poverty in older age. Not that I feel OLD at 62 but the job angle ( providing you can get one ) throws up the same problems without a really good wage you can be no better off.

dunstonh

I doubt she acutally means re-mortgaging as that would involve monthly payments to a lender in the traditional mortgage sense. Equity release is the generic term used for releasing equity in your house. Lifetime mortgages are another term used for a version of it.

needmoney

Thanks for replies.