Equity Release and benefits.

MWT · 29 March at 11:00AM

https://forums.moneysavingexpert.com/discussion/comment/81941646#Comment_81941646

The interest on the loan does not begin until it is drawn-down, so there is a cost to access the loan even if it is approved, not really the same as deferred income where you have reduced your available capital to obtain the income, but not yet taken it.

Altior · 29 March at 11:12AM

https://forums.moneysavingexpert.com/discussion/comment/81941721#Comment_81941721

As I indicated it would most likely come down to a DM's interpretation (and the finer detail, which I don't have here).

The way you are outlining it makes it sound like it's no different to having not finalised the equity release and drawdown in the first place. If someone is that short of money they need PC, and still don't access the equity released, why finalise releasing it? I'm assuming there is a cost implication in setting up this accessible equity pot. I however I realise that's a rhetorical question, really for the OP.

MWT · 29 March at 3:33PM

https://forums.moneysavingexpert.com/discussion/comment/81941736#Comment_81941736

I'm struggling to see where there is any element of discretion involved, the rules for PC disregard the home as an asset or investment, and equity release is nothing more than a loan secured against the property just like any other loan that might be used to pay for furniture. white goods etc.it is not income and if they are a tax payer, it is not taxed as income either…

To answer your question though, yes, there is a cost involved in setting up the equity release drawdown facility and it has the benefit of locking the interest rate for life.

weleasewoger · 30 March at 8:53PM

As I mentioned earlier I have now received a response from The Equity Release Council who, as expected tell me to refer to the lender -AKA they pass the buck.