Equity release

Jamesdeer001

Hi,

I've tried googling and looking for advise but was hoping I could ask here.

My dad is in his mid 80s and his interest only mortgage ends in 2018. Currently, his property is worth around 500k with the mortgage value of 200k. He doesn't want to move from the property (it's located in a nice part of London and the transport system is important to him).

His research suggests that an interest only equity release mortgage is his best way of going forward. His age allows for 44% of the property to be released so he could borrow enough to pay off the interest only mortgage. He also has a sizeable pension so wants to go down the interest only equity release (200k to pay off the mortgage). At approximately 6%, he would be paying 1k/month in interest. He is happy with this (and can easily afford it on his pension), partly because it allows him to stay where he is, and partly because he believes any interest he pays will be offset by property value increase (as I said, it's a nice part of London which has only gone up in value). The increase would need to be 2.4% pa to offset what he'd be paying in interest.

My question is, does anyone have experience in these types of mortgages, or know of anyone who offers free advise and comparison services (I couldn't see anything on the London and County website) or can anyone recommend any companies who offer these products.

My research suggests that as long as he goes with an option that includes paying the interest monthly (which as I say, he can easily afford), then the interest won't compound and he can stay in the property without losing any inheritance (assuming values don't decrease).

Thanks

Let_Us_See

I am a fully qualified Equity Release (Lifetime, lifetime-interest paid, and Home Reversion schemes) adviser and quite prepared to have a no fee chat with you providing generic information. I must point out by 2018 the market could be quite different.

I have tried to amend my listing and I certainly do not want to break any MSE rules and is probably best to send me a PM.

amnblog

Let_Us_See wrote: »

I certainly do not want to break any MSE rules and it is probably best to send me a PM.

I think you just have.

Let_Us_See

Have I?

Providing generic advice via PMs breaks rules? If there was a specific question then a simple reply would suffice, but generic advice could run to pages and pages!