best equity release with intrest paid montly

phoneguru1

hi iam looking for the best company for equity release paying back the monthly interest  i have £20,000 intrest only mortgage to pay off next year my house is worth around the £470,000 mark i only want £45,000 outto pay off existing mortgage and the rest for new kitchen bathroom etc . but i would like to pay off the interest monthly iam retired but have over £1800 coming in a month , iam looking for the best broker and any pitfalls to look for many thanks in advance 

Brie

Do you have any income related benefits being paid?  If so equity release may not be a good idea even if you do pay out on things immediately. 

Have you considered alternatives to pay for the new kitchen etc?  Do you know if the excess above paying off the mortgage will be sufficient for a new kitchen and a new bathroom?  Our kitchen last year was nearly £20k on it's own.  Not overly fancy or large, but all new appliances.  But being paid off over 4 years at 0% having used a national DIY firm.  

dreaming

I can only give you a personal view on my recent experience of equity release. I used Responsible Life Ltd initially and was happy with their financial adviser who was very thorough and understood what I wanted to achieve. He explained things very carefully and answered my questions. From his list of recommended options I chose Canada Life as the provider and was approved for £50k (this was the maximum I wanted so not sure if I could have had more and my house was valued at £260k) but so far have only drawn down £30k, choosing the leave the balance in case of something major in the next few years. I chose to pay the interest monthly (which is only on the drawn down amount of £30k) and also have the option to repay up to 10% annually, which I may begin to do in a year or so. The whole process was very smooth from start to finish and took about 7 weeks from the first meeting with the financial adviser to receiving the cash. I'm not affiliated to the companies and as I said previously, this is just what happened from my point of view. I had enquired with one of the "bigger" firms who advertise about equity release but got bombarded by emails and letters despite me saying it was just initial investigations at that stage which kind of put me off.

phoneguru1

Brie said:

Do you have any income related benefits being paid?  If so equity release may not be a good idea even if you do pay out on things immediately. 

Have you considered alternatives to pay for the new kitchen etc?  Do you know if the excess above paying off the mortgage will be sufficient for a new kitchen and a new bathroom?  Our kitchen last year was nearly £20k on it's own.  Not overly fancy or large, but all new appliances.  But being paid off over 4 years at 0% having used a national DIY firm.  

yes i have pip  but its not means tested , and 25% council tax rebate for being sole occupier ! iam aware that money in the bank changes my rebates on the rest of the drawdown but it will be going straight into billding work on my house 

phoneguru1

phoneguru1 said:

Brie said:

Do you have any income related benefits being paid?  If so equity release may not be a good idea even if you do pay out on things immediately. 

Have you considered alternatives to pay for the new kitchen etc?  Do you know if the excess above paying off the mortgage will be sufficient for a new kitchen and a new bathroom?  Our kitchen last year was nearly £20k on it's own.  Not overly fancy or large, but all new appliances.  But being paid off over 4 years at 0% having used a national DIY firm.  

yes i have pip  but its not means tested , and 25% council tax rebate for being sole occupier ! iam aware that money in the bank changes my rebates on the rest of the drawdown but it will be going straight into billding work on my house 

sorry building work  , i also need some new reading specs ;-)

poseidon1

phoneguru1 said:

hi iam looking for the best company for equity release paying back the monthly interest  i have £20,000 intrest only mortgage to pay off next year my house is worth around the £470,000 mark i only want £45,000 outto pay off existing mortgage and the rest for new kitchen bathroom etc . but i would like to pay off the interest monthly iam retired but have over £1800 coming in a month , iam looking for the best broker and any pitfalls to look for many thanks in advance 

Worth exploring the 2 major insurance companies ( L & G and Royal Life) mentioned in the following thread - 

https://forums.moneysavingexpert.com/discussion/comment/81575560#Comment_81575560

Frankly given your house equity and level of monthly income, can't see you having any problems getting what you want, so just a question of getting the best fixed  ( for life) interest deal with flexibility to part redeem with no penalties should you so wish.

As for pitfalls the following blog seems to cover keypoints to be aware of - 

https://www.protaxaccountant.co.uk/post/equity-release#:~:text=Legal Fees: A solicitor handles the conveyancing,expertise, but fees vary, so compare quotes