Equity Release

JOJE

Hi,
Need some advice as both of us are retired receiving a small pension.
The house has a small mortgage.
We have used up our savings and are are thinking of taking out an Equity Release.
This will give us a money to pay the debt and then receive a monthly sum to help us live, with a roof over our head while alive.
We want to put money to our funerals so as not to leave debt for our children.
We would like to stay in our house.
Any ideas as we want to make the right decision. 

jonesMUFCforever

Maybe the mortgage board would be better as they have people on there who know more than the personal loans discussed on here.

fatbelly

One of the things you have to accept with equity release is that there will be less for anyone to inherit.

Brynsam

Have you read the very helpful MSE article on this topic: https://www.moneysavingexpert.com/mortgages/equity-release/

Browntoa

As much as you don't want to , downsizing is a much better way of releasing enquity. There's no interest rolling up like with equity realease , a big chunk of the value of your property will end up with the equity realease company and not your children

203846930

There may be more advice available on the over 50s board, there is an ongoing thread there about equity release and some knowledgeable folk post on it.

MWT

JOJE said:

Hi,
Need some advice as both of us are retired receiving a small pension.
The house has a small mortgage.
We have used up our savings and are are thinking of taking out an Equity Release.
This will give us a money to pay the debt and then receive a monthly sum to help us live, with a roof over our head while alive.
We want to put money to our funerals so as not to leave debt for our children.
We would like to stay in our house.
Any ideas as we want to make the right decision. 

I would suggest that you have a chat with an equity release advisor at 'StepChange', they will help you consider all your alternatives including downsizing and if they feel your needs are a good match they will recommend an equity release solution, but only after they have been through all the details of your situation with you.

You will have to take advice if you do decide to go with an equity release product and most people qualified to give that advice will charge a significant amount for it, StepChange are a charity and do not change for the advice.

One unavoidable fact is you will have to payoff the mortgage as part of the release, but it sounds like you already intended to do that anyway.

meadow2018

My parents neighbours took out equity release on their property.  After the husband died because of the equity realise his widow was not entitled to certain benefits, because she was on a low pension she had to keep increasing the equity release to pay her bill's.  When she died after paying back the equity release company there was barely enough left to pay for her funeral and other outstanding expenses. 

Onlooker2

It is our opinion that the time at the moment is not right to get into a mortgage for your lifetime with equity release.To many unknown factors in the financial futures of everyone.Wait.Get all the information you can at least.
Go to forum Mortgages & Endowments.Scroll down to Lifetime Mortgages and read.You do not have to log in unless you would like to comment.Consider