Equity Release

paul2468

Hope i have posted this in the right pace....My mother who is 75 and owns her house ..aprox value 60k she owes nothing on the house and would like to take out 20k to be repaid when she dies.....My question is what is the best way for her to go about this as we have searched on google and there seems to be so many firms willing to help.
Could anyone please point us in the right direction as we want to make sure we get the best for her........many thanks.

Rafter

Paul,

Not a particularly big loan and not a particularly valuable house might be a problem for your mum.

You might find www.ship-ltd.org a useful link. It is the industry body for equity release and shows you the different products, product providers and brokers.

The issue with equity release is that the lender is taking the risk that your mother lives a very long time or that her house is worth less in the future than it is today. As such, the rate of interest charges might be a lot higher than a conventional mortgage.

If your mum lives for a very long time, it could be that 100% of the house is owned by the equity release lender.

Good luck to you both.

R.

dunstonh

on google and there seems to be so many firms willing to help.

Many IFAs will give advice in this area (and the main source for dealing with purchasing). However, the number of actual providers of equity release is actually quite small.

You can find a local IFA at https://www.unbiased.co.uk and post code search and use the filter for equity release (as not all IFAs do it and this will show the ones that do).