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LanguedocFox wrote: »
In my opinion, anyone who takes out an Equity Release mortgage without paying the interest each year is a mug because, as you suggest, you end up paying interest on interest on interest.
However, interest rates aren't massively higher than for conventional mortgages. My wife and I are in our 70s, and we're in the process of buying a house in the UK having lived abroad since 2004, so getting a conventional mortgage is all-but impossible for us.
Accordingly, we've taken an Equity Release mortgage to help fund the purchase, at an interest rate of 3.83%, which on the £90K we are borrowing works out at £3600 a year. The rate is fixed for the life of the mortgage, and we intend to pay off the interest and part of the capital each year - we can pay up to £9000 without penalty.
I suspect that interest rates will increase, possibly substantially after Brexit hits home, but we will still be paying 3.83%.
bevjtaylor wrote: »
im heartbroken I have just found out my parents had equity release on their house around 18 yrs ago borrowed 60K on checking a lastest statement now owe 118K dont know what to do? anyone got advice?
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