House equity downpayment?

Cassius14

Hi there,



My mum has paid off her mortgage but is looking to take some money out to renovate her house, roughly £20-25k. She has seen an offer in a paper from Stonehaven offering an equity release loan with an interest only (5.89%) payment scheme. What concerns me is that the loan duration is 24 years and the loan amount will quadrouple if the payments can't be made. I am sure the repayments won't ever be an issue, I'm just concerned that, although my mum is healthy 64 year old, that anything could happen over the next 24 years.



As loans are tricky to get an her age I'm wondering if there were any other options available to her of getting cash out of her home? Any advice would be warmly welcomed, thank you.


Chris

[Deleted User]

Better to post on the mortgages board.

£24k is very risky to take out on credit cards.

AnotherJoe

Loans arent tricky to get age 64 as long as you can cover the repayments.
What spare income does she have?

Have you looked at say a 15 year mortgage? Might have to go to £30k thats often a minimum limit.

MallyGirl

Would you like this moved to Mortgages?

Cassius14

Thanks for the advice so far guys!


Yes would be best to move it to the mortgage forum, thanks MallyGirl.

MallyGirl

moved to a better location

Timor

Loans are not difficult at 64.

25 years on equity release is a long time for things to go wrong.

Has your Mum considered phasing the overhaul? Takes a loan, do first project, pay it down? It would give her a feel for repayments without a 25 year long term commitment.

Good luck!