Equity release

stematthews47

Hi,

My mum has an equity release charge against her property. I understand that it is a lifetime mortgage but can someone clear this up for me?

Is there a mortgage I can apply for to pay off the equity loan, and keep the house within our family?
Many thanks

Stephen

eddddy

Currently, the house doesn't belong to you, so you can't get a mortgage on it.

However, the equity release loan is really a type of mortgage. So your mum can probably sell the house and pay off the equity release loan.

So she can sell it to you, and use the money you pay her to pay off the equity release loan.

And you would get the money to pay your mum by taking out a mortgage (plus some savings).


But obviously, the mortgage lender would want to check your finances to make sure that you can afford to repay a mortgage.