Mortgage or equity release?

ElisabethRay

I find myself in a situation where my partner of 35 years and I have split up (although we are still sharing the house) and I need to buy him out. We have no mortgage and own the property 50:50. I guess I’d describe it as an amicable split, although it has been painful.

I have some savings but not enough to cover 50% of the house value - would I be better getting a mortgage or releasing some equity from the house? I am 56 and employed though I don’t earn a high salary. I have no debts and no children.
Thank you

silvercar

Would the size of mortgage you can get be sufficient to cover 50% of the house value and leave you enough to live on? If so, I would do that. If it wouldn't be enough then look at releasing some equity. I don't know enough about equity release to know if you could get 50% of the value at your relatively young age. 

One option to look at would be that when you take your pension you could take a lump sum and use that to partly pay him off. So a mortgage before then, then a lump sum followed by a smaller mortgage. Or a lender may consider an interest only mortgage with your lump sum as the repayment vehicle, to keep the monthly repayments down.