home equity loan

rahman1995

hi everyone

hope all is well

i was thinking of acquiring a home equity loan to build an extension on my home, i can't remortgage.

is this a good idea? i have no idea what the rates will be like for the repayment , and i have my current mortgage too. also, currently we have no idea if interests rates will rise significantly. i do not want to put myself under too much pressure, but i now really need the space and it would also increase the value of my house.

has anyone had any experience with home equity loans? can anyone give me some advice

cheers

Worried2

The taking out of Equity Release has many implications that should be considered.Firstly any mortgage you have will have to be paid off.Any loan you make will be subject to a Legal Charge against your property.Interest payable is usually though a Lifetime Mortgage.No payments need to be made but the interest is compounded meaning in effect at a interest rate of 5% your debt will double in about 15 years and triple in another 10 years..Get a written estimate if you must but bear in mind once you have signed you cannot leave without paying an early exit fee of about 25% of the original loan plus whatyou owe..Take time look at alternatives.