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I might as well take equitity release.

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clive0510
clive0510 Posts: 890 Forumite
Fifth Anniversary 500 Posts
in Mortgages & endowments
HI. I'm 59. live on my own now with no kids or dependants. so I'm thinking may as well get some equitity release against this place and use the money to have it completely painted and decorated, new carpets and curtains etc. 
I'm just wondering what are the pitfalls of equity release and also have any of you had experience of it- good or bad.

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  • MovingForwards
    MovingForwards Posts: 17,149 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    clive0510 said:
    HI. I'm 59. live on my own now with no kids or dependants. so I'm thinking may as well get some equitity release against this place and use the money to have it completely painted and decorated, new carpets and curtains etc. 
    I'm just wondering what are the pitfalls of equity release and also have any of you had experience of it- good or bad.

    Ask on the mortgage board.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • clive0510
    clive0510 Posts: 890 Forumite
    Fifth Anniversary 500 Posts
    MovingForwards said:
    clive0510 said:
    HI. I'm 59. live on my own now with no kids or dependants. so I'm thinking may as well get some equitity release against this place and use the money to have it completely painted and decorated, new carpets and curtains etc. 
    I'm just wondering what are the pitfalls of equity release and also have any of you had experience of it- good or bad.

    Ask on the mortgage board.
    I don't want a mortgage.
  • Browntoa
    Browntoa Posts: 49,604 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Equity release is a "lifetime mortgage" 

    Normally rolling the debt up until you move or die ( unless you choose to pay interest )


    Ex forum ambassador

    Long term forum member
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    1,000 Posts Second Anniversary Name Dropper
    If you want money out your property, want to stay in your home until death, and don't care about passing on an inheritance to anyone then there aren't any pitfalls to equity release. 
    Very little underwriting, very little income checks, they don't care what you use the money for.   Ultimately you die and they take the house

    If you want to leave something to someone then it will eat away at your equity quite quickly.

    You might have a house worth 200k now and release 80k from it.   Your house value might increase to a million but it won't matter as the equity will be taken by the firm who have you the money in the first place. 

    As long as you don't care about that then it's worth looking in to.  Otherwise take a normal mortgage over 10 years and pay it back and keep the property as 100% yours in retirement 
  • RobM99
    RobM99 Posts: 2,707 Forumite
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    May I suggest - ask a qualified financial adviser!
    Now a gainfully employed bassist again - WooHoo!
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