Equity Release?

cmhbyandco

I owe £60,000 on an interest-only mortgage that needs to be settled next year. My husband died three years ago & he couldn't get life insurance!

Do I go for equity release or a repayment mortgage?  I will be coming into a considerable inheritance & would pay anything loaned back straight away.

I'm 63, work part-time & also receive a pension from my late husband.  

Any advice would be great, thanks.

DE_612183

how much is the house worth?

when will you get the inheritance?

Linton

For ER there will be an early redemption charge.  In our case it decreases from 5% of initial loan to zero over a period of 10 years. 

At your age I would expect ER to be restricted to perhaps 30% of the value of the house.

HUSKYPAL

It depends when the inheritance is expected, can you negotiate an extension to the interest only mortgage with your current lender?

I would personally not go for equity release, if you know you have a large inheritance (how large?) then just find a way to keep your mortgage costs down as low as possible until you get the inheritance. I would avoid long term fixed rates as you will then have to pay exit fees.

cmhbyandco

DE_612183 said:

how much is the house worth?

when will you get the inheritance?

House is worth £350,000 & inheritance will be about the same amount. As for getting the inheritance, time will tell!