Equity release Interest - help needed

[Deleted User]

magpiecottage wrote: »

I suspect that it might fall foul of a no negative equity guarantee.

But was such a guarantee available thirty years ago when the Equity Scheme was first entered into?

antrobus

chrissy777 wrote: »

my solicitor originally said they freeze the interest upon death, as long as house is seen to being put on the market.....

Well, your solicitor simply got that one wrong.

I asked the question, just in case it was the bank that had said they would freeze interest. Which I suppose is something someone could complain about.

magpiecottage wrote: »

I suspect that it might fall foul of a no negative equity guarantee.

What negative equity? On the facts stated by the OP there is £44k of equity. Even with interest accruing at £600 a month and zero HPI that prospect is a little way off.

magpiecottage

What negative equity? On the facts stated by the OP there is £44k of equity. Even with interest accruing at £600 a month and zero HPI that prospect is a little way off.

I agree. In general terms, a SHIP (Safe Home Income Plans) Lifetime Mortgage would have a no negative equity guarantee and so I think the lender would be hard pressed to argue that funds should be set off.

In this instance that would not be applicable because the loan predates SHIP and if Santander is on the ball, it will deny FOS jurisdiction as the Building Societies Ombudsman scheme (of which Abbey National was a member) did not start until 1987.

Even if it was, a complaint of "my parents spent my inheritance" seems unlikely to be looked on sympathetically by FOS anyway - it was their money, after all.

However, given that there is equity available, I think the personal legal representatives of the deceased have grounds for complaint that the cash is not being released to them.