MSE News Discussion: Should you equity release?

Thrugelmir

mike56 wrote: »

this opinion sounds so much like my dear old dad's philosophy that "a mortgage was just a millstone round your neck".

Property is not the pension pot many thought it would be. Debt is the issue, the attitude to it. Ever increasing amounts of debt are unsustainable. Asset prices will correlate as well.

sharon_daniel

I own my house outright and its valued at 360'000 .
I am thinking of trying to release 25'000 in order to pay off debt my credit score is very poor so i cant borrow , the reason for this is i have have been unwell . I am 56 years old . my worry is i have two children and dont want to affect their inheritance . Any Advice please ?

OnTheRun

sharon_daniel wrote: »

I own my house outright and its valued at 360'000 .
I am thinking of trying to release 25'000 in order to pay off debt my credit score is very poor so i cant borrow , the reason for this is i have have been unwell . I am 56 years old . my worry is i have two children and dont want to affect their inheritance . Any Advice please ?

Wow, how did you manage to dig this ancient thread up?

As the article this thread is for was written so long ago, with no indication of it ever being updated, it too could no longer be valid.

Anyway, what do you think equity release is if not borrowing?

I would suggest if you don't want to adversely affect your childrens inheritance, you find other ways to pay off the existing debts rather than "robbing Peter to pay Paul"

Have you considered rent-a room to possibly bring in some extra cash? If that's not possible, then there are other ways of saving. Take a look elsewhere on this site, particularly the Debt Free Wannabe board, for alternative suggestions.

NYDULV

Hi, 1st time on the forum, looking for advice,

I have in-laws with money issues, They are both n their early 70's and one is still working to pay an £1100 per month interest only mortgage. they both have full state pensions & they also have 1 small private pension paying 4k per year,

Property worth 340k
Mortgage 185K

They cant work forever paying an endless £1100 per month to keep them in their house that they are effectively renting for all intensive purposes

Any advice on how I can assist them.

Thanks

dunstonh

NYDULV wrote: »

Hi, 1st time on the forum, looking for advice,

I have in-laws with money issues, They are both n their early 70's and one is still working to pay an £1100 per month interest only mortgage. they both have full state pensions & they also have 1 small private pension paying 4k per year,

Property worth 340k
Mortgage 185K

They cant work forever paying an endless £1100 per month to keep them in their house that they are effectively renting for all intensive purposes

Any advice on how I can assist them.

Thanks

Get them to a local independent adviser that deals in equity release. Let the adviser do the rest.

Thrugelmir

NYDULV wrote: »

They cant work forever paying an endless £1100 per month to keep them in their house that they are effectively renting for all intensive purposes

That's a high interest rate to pay on £185k of borrowing. Are you sure it's correct?

brit1234

NYDULV wrote: »

Hi, 1st time on the forum, looking for advice,

I have in-laws with money issues, They are both n their early 70's and one is still working to pay an £1100 per month interest only mortgage. they both have full state pensions & they also have 1 small private pension paying 4k per year,

Property worth 340k
Mortgage 185K

They cant work forever paying an endless £1100 per month to keep them in their house that they are effectively renting for all intensive purposes

Any advice on how I can assist them.

Thanks

When your parents took out the interest only mortgage they had to have a means to repay the mortgage like a share portfolio. Are you saying they breached their interest only mortgage conditions?

silvercar

brit1234 wrote: »

When your parents took out the interest only mortgage they had to have a means to repay the mortgage like a share portfolio. Are you saying they breached their interest only mortgage conditions?

It wasn't always a condition that you had to have a way of paying back at the time of taking the mortgage and keeping it going. Remember when endowment mortgage became unassigned ie the endowment provider gave control back to the mortgagee.