Equity Release

Promis22

My mum in her 80's has drawn down 2 lump sums of £30,000 to help her top up her pension. She is now telling me it's at a rate of 8%, if this continues, depending on how long she lives, may owe more than her house is worth. Do you know if she can get out of it? She wants to sell her house to down size, at this point could she pay it back? But then she wouldn't have the equity to buy the next house. Any advice welcome. She may have been mis sold? 

silvercar

These days equity release products have a restriction that you can’t owe more than the property value. 8% is not unheard of in equity release products.

there are ways of moving and taking the equity release onto your next property, depending on value etc. Try posting on the mortgage board.

DullGreyGuy

Promis22 said:
She may have been mis sold? 

What are your allegations of miss-selling based on? Buyers remorse doesnt mean something was miss-sold

robber2

sounds more like a case of mis spending followed by remorse and regret

fatbelly

Promis22 said:

My mum in her 80's has drawn down 2 lump sums of £30,000 to help her top up her pension. She is now telling me it's at a rate of 8%, if this continues, depending on how long she lives, may owe more than her house is worth. Do you know if she can get out of it? She wants to sell her house to down size, at this point could she pay it back? But then she wouldn't have the equity to buy the next house. Any advice welcome. She may have been mis sold? 

My impression (right or wrong) is that these products are well regulated now.

If she wants to make a complaint the process is here

https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/mortgages/equity-release