secured or unsecured loan/

Legacy_user

my mother has agreed to take out a loan to help myself and my sister get ourselfs out of money trouble.she lives in a house where the mortgage has long been payed off, but a few years ago she released some cash from an equity release company.i presume they have a say in if she can secure a loan on the house.?. if she goes ahead with a secured loan(obviously cheaper then an unsecured loan),can the equity release company stop her,or will they even know shes doing it?

jonesMUFCforever

Equity release company will have a first charge on the property. Their money will be safe as a subsequent charge will come second in line.

regularsaver1

The subsequent charge company will seek permission from the 1st charge company

lynzpower

Your point about secured loans "obviously being cheaper than unsecured" I expect is incorrect. the amount of admin fees an the high cost of other charges, make secured loans very poor value for money indeed