Equity release when buying a house

74109910

Apologies if this has been asked before.  I want to buy a house for which I do not have all the funds.  Can I use equity release to help fund the purchase.  Example:  I'm retired, aged 62 with a modest pension from the Civil Service.  Once my current property is sold along with some savings, I will have around 250k for my next house.  My next house will cost around 300k and am prepared to give up about 30% of the new property.  So, I want about 50k to help buy the house and 50k on top for myself.  Can anyone advise if this is a possibility please?  

zagfles

No. You probably wouldn't get £100k even for 100% of your new property. Have a read of What is equity release? | MoneyHelper

whizzywoo

You could try getting a Lifetime Mortgage for the additional £100,000 that you need.

Get a Financial Advisor.

With a Lifetime Mortgage you don't give up a percentage of your house.
You can get them where you just pay the interest and you can pay some of the capital off as well if you want.  If you don't pay off the interest each month then the interest charge just rolls up and there is compound interest on it.

I doubt you'll get £100,000 though but £50,000 should be doable.  The interest charges each month would be approximately £275 per month if the interest rate was 6.61%.  Standard Life charge this rate on Lifetime mortgages if you agree to pay the interest.

A good independent Financial Advisor will be able to help you.

Albermarle

A good independent Financial Advisor will be able to help you.

Normally IFAs do not get involved in mortgages AFAIK. 
A mortgage broker would probably be a better bet.

kingstreet

You could consider a standard interest-only mortgage if you can manage some monthly payments and then move that onto an interest roll-up product when you're older.

You need advice from a specialist with later life lending permissions who can take you through all the options.