Reverse Mortgage?

[piggynose]

Has anybody on here ever had one? .
Its something i am thinking about, but need a bit more info.
tia

[ToraToraTora]

You mean save up and buy a house?

[Ellipsis]

In the UK it's called equity release ...

[goodgoalie]

Equity release?

[barry1010]

If you fully understand all the aspects of it, have properly read all the terms and conditions and chosen the right company it can be good.
Depends very much on your circumstances and what you need the money for

[barry1010]

Equally many have regretted their decision to take on an equity release contract

[piggynose]

ttt, in a word, no

[ToraToraTora]

Well that is a reverse mortgage piggy. If you mean equity release then that is still a mortgage the right way round with some features attached. You borrow money then repay it somehow, the reverse of that is to save up and buy a house. QED.

[barry1010]

TTT, reverse mortgage is a proper, recognised term meaning equity release.

There is no mortgage involved in saving up to buy a house outright

[THECORBYLOON]

TORATORATORA,

https://shortest.link/hVxv

[ToraToraTora]

"TTT, reverse mortgage is a proper, recognised term meaning equity release." - is it really? first I've heard of it and it's wrong it is not the reverse of a mortgage it's a mortgage.

"There is no mortgage involved in saving up to buy a house outright " - yes it's like a reverse loan often prescribed for those with no credit, how much can you afford to pay each month? well save it until you have enough to buy what you want to buy. The reverse mortgage would be the same, ostensibly it is a loan and the opposite of a loan is saving, geddit?

[barry1010]

Just because you've never heard of it doesn't mean it doesn't exist. Google it

[douglas9401]

There will be many things that many people have yet to hear about , it doesn't mean that those things don't exist.

[douglas9401]

Ooh. :-)

[ToraToraTora]

barry: "Just because you've never heard of it doesn't mean it doesn't exist. Google it " - I have and I never said it didn't exist but I thought is sounded odd. I now see that the term does exist but it is not a reverse mortgage it's a mortgage. It's like life "insurance" there is no such thing yet it has erroneously emerged as a thing.

[THECORBYLOON]

TORATORATORA, if you have nothing constructive to add, why not just move along?

[piggynose]

QED, is that latin or cockney? : )

[ToraToraTora]

It's latin piggy. Better not trouble yourself with the meaning.

[bobbinwales]

yes, the difference from a normal morgage is they lend you the money to put toward's the purchase of the property where as a reverse mortgage/equity releas eis they lend you the money from your equity in a property for you to spend how you want.....but in both cases its a loan that has to be repaid by monthly payments or from the eventuall sale of your property. SO I see TTT's point.sale

[bobbinwales]

//Its something i am thinking about,//
whats your reason for considering it.? Would you repay it as you go along or on the sale after your death. A factor is if you have dependants who might end up with no house and the state owes a lot if you live say 25 more years so lot's of interest at a high rate will of built up

[ToraToraTora]

Advantages
- You get a lump sum for what you need now
- Nothing to repay
- You can live in the house until you die and not worry.
Disadvantages
- Interest is added on and compounded
- For a relatively small amount of equity you will in all probability exhaust all the equity on your house, fine if you are not bothered about legacy.