An Equity Release is a type of loan secured on your home, which is not repayable until you die or sell. This would not be until the second person dies if the property is in joint names. As the Lenders have to wait for their money to be repaid the interest charged is normally on a compound interest basis which can rapidly increase.
Specialist advice
Specialist advice is needed before you commit to these types of mortgages to ensure you know and can comply with all the terms and the mortgage is suitable for you. Issues that need to be considered include would you have enough money to downsize at a later date once the mortgage is paid off and could it affect the receipt of any means tested benefits.
Further information is available at Equity Release Council and we can assist with these products.
