Releasing Equity for home Improvements.

gorgeousgoldens

Hi
We have lived in our house for 25 years, we're mortgage free and both retired.

Our house cost £150,000 and is now 'worth' £500,00. When we moved in the house hadn't been updated since it was built in the 1950's, so during the first few years we added a brick garage with a 4th bedroom and ensuite, as well as a conservatory, new kitchen, double glazing etc.

The house is starting to look a little worn and could do with some TLC.

 Is there any way of releasing/ using that equity to help with home improvements?
Thank you

Browntoa

Equity release is an incredibly expensive way of accessing money 

Just saying 

kingstreet

A retirement interest-only mortgage? Affordability is usually based solely on retirement income with the capital being repaid on death/sale of property.

It would be sensible to get advice from a suitably qualified and authorised later life lending specialist who can cover all the options.

Keep_pedalling

Browntoa said:

Equity release is an incredibly expensive way of accessing money 

Just saying 

Only for your beneficiaries after you die.

MWT

Browntoa said:

Equity release is an incredibly expensive way of accessing money 

Just saying 

It depends what you have and hence what options are available...

If you each have enough guaranteed income to service a RIO mortgage on your own then that can be a great way to release some of the equity, with no obligation to repay more than the interest during your lifetime.

If you don't have that sort of income but you do have a large chunk of equity in the property and no other mortgage then equity release may be the best route, especially if you are not concerned about the value of your estate when you die...

Cash_Cow

Out of curiosity what type of compounded interest rates do these equity release schemes use?  I'm looking at a 4% fixed for 2 years with Lloyds currently and wondered  if they were comparable?

MWT

Cash_Cow said:

Out of curiosity what type of compounded interest rates do these equity release schemes use?  I'm looking at a 4% fixed for 2 years with Lloyds currently and wondered  if they were comparable?

They are usually higher than the sort of deal you are looking at, but they are fixed for life. 

You can see some examples here: https://www.equityreleasesupermarket.com/compare-deals

Timing is both important and often a matter of luck.

An equity release mortgage taken out 5 years ago could be cheaper than your 2 year product is now...

Linton

MWT said:

Cash_Cow said:

Out of curiosity what type of compounded interest rates do these equity release schemes use?  I'm looking at a 4% fixed for 2 years with Lloyds currently and wondered  if they were comparable?

They are usually higher than the sort of deal you are looking at, but they are fixed for life. 

You can see some examples here: https://www.equityreleasesupermarket.com/compare-deals

Timing is both important and often a matter of luck.

An equity release mortgage taken out 5 years ago could be cheaper than your 2 year product is now...

I got 3% fixed for life 5 years ago.

MWT

Linton said:

MWT said:

Cash_Cow said:

Out of curiosity what type of compounded interest rates do these equity release schemes use?  I'm looking at a 4% fixed for 2 years with Lloyds currently and wondered  if they were comparable?

They are usually higher than the sort of deal you are looking at, but they are fixed for life. 

You can see some examples here: https://www.equityreleasesupermarket.com/compare-deals

Timing is both important and often a matter of luck.

An equity release mortgage taken out 5 years ago could be cheaper than your 2 year product is now...

I got 3% fixed for life 5 years ago.

... and shorter term fixed rates were available for well under 3% back then as well.

Right now though it is a different market.