Equity release too expensive and inflexible,

harrybird

I am looking to release £40/£50k from my property worth £160k, I am 70, wife is 66, this precludes a remortgage or a secured loan.
I want the option to pay the interest and repay the capital without costly redemption charges (Pru quote up to 25% for early repayment),
I would have no difficulty paying up to about 7% and expect the loan to be repaid within 10 yrs from other sources, probably by downsizing.
Any ideas or suggestions would be appreciated.

lisyloo

I ahve looked into this before for parents and I think your only options are downsizing or equity release.
The only other possibility is a loan from children who then get a lot more when you die e.g. kind of like private equity release.
However you need to make sure everyone is protected in this case e.g. you don't want your home to be sold for long term care and for your kids to get nothing if they've made a loan. So a lot of care is required for private arrangements e.g. what happens if one of the children dies first?

Could you downsize now?
What do you need the money for?
Not being nosey, but it might help with the advice and options if people knew what it was for.