Equity Release

seashore22

MaryLou18 wrote: »

We have been speaking to a company called equityreleased2u and they have been great at telling us the pros and cons. Just trying to make our final decision and what to do next. Has anyone use equity release to release cash out of their home? Thanks

Aren't you very young? 28?

Personally I wouldn't recommend equity release to anyone, but I'm not even sure it's an option at your age.

kidmugsy

It seems to me that for some people equity release is such a promising answer to their problems/desires that the burden of proof should fall on those who oppose the idea.

What's the point of someone childless dying while still the owner of unencumbered property? God doesn't want it; he already has many mansions.

AnotherJoe

MaryLou18 wrote: »

We have been speaking to a company called equityreleased2u and they have been great at telling us the pros and cons. Just trying to make our final decision and what to do next. Has anyone use equity release to release cash out of their home? Thanks

That is ridiculous if you really are 28. and i cant believe they would be interested.

I suggest you start reading FIRE* blogs / articles.

Try "the escape artist"
"Early retirement extreme"
and the venerable "Mr Money Mustache"


* Financial Independence Retire Early

Alibert

This is a sensible alternative

https://www.telegraph.co.uk/personal-banking/mortgages/retired-homeowners-offered-mortgage-lifeline/

alastairs

Hi all. thought I would give my opinion on the matter. Equity release isn't for everyone and people should seek independent professional advice before doing anything. That said, it is as others have mentioned, a loan on your home. There are different types of equity release (such as a lifetime mortgage or a drawdown mortgage) that serve different purposes. The "typical" form of equity release is via a lifetime mortgage which is a loan on your home. There are pros and cons as with most things. The main con being compound interest. One can always choose to service the interest by making payments towards it, that way it will only be the loan amount that is outstanding when it comes time to sell. Of course you don't have to, however as mentioned the interest will compound over time. Make sure when selecting a lender that they are a member of the Equity Release Council. This means that their products will have a negative equity guarantee, meaning that you can never owe more than the value of the property.

mgdavid

I'm always wary of newbies who sign on just to comment on a 1 year old thread revived out of nowhere!