EQUITY RELEASE

goodchap

My father took out an equity release in 1999. This is a compund interest of 7.5%. He passed away and now the debt is owed by my mother as the house is now hers. There is a penalty for early payment which is tied to guilts. They really new nothing about all of this when they took pit the lifetime mortguage, and now looking into paying it off it seems that as it was a life time mortguage there will be a sum retained by the lender (which has changed due to the original company being sold) till the death of my mother, she is 84. So even if she wanted to she cannot completly pay of the debt. Luckily the equity in the house they have owned since 1973 has increased and she could do this on its sale. she would like to do this as the compound interest has increased to frightening levels.Increaseing at more than 25000 per year now.   It seems unfair that one cannot completely clear a debt, only part of it if she sells the house, and will have to pay early payment    90k (variable on guilts)  penalty as well as still owe a partial debt at compound interest till she dies. I am not sure if there is any way out of this situation Any ideas?