Equity Release

[kendra20]

has anyone had equity release and was it a good idea

[ladydyer]

Our house wasn't selling fast enough and wanted to buy a bigger house so we rented the house out and used some of the equity in it to buy our second home. Was the best thing we ever did and was quite easy.

[ladybirder]

Not quite the same thing lady if I understand you correctly.
My son's MiL did it but her family took fright at the pace the debt was increasing so she downsized and paid off the debt. In the right circumstances it can be a good thing but make sure you borrow off someone who belongs to SHIPs (safe Homes Income Plans or something like that).

[kendra20]

thank you both for your input, I can understand relations being worried about the interest mounting up but we have been made aware of this and our kids aren't interested about the house when we are gone, and have told us to enjoy the money now and not leave it for them. and there would still be enough left for them anyway.

[Peter Pedant]

a debt doubles every seven years at 7% - or thereabouts

there are schemes whereby you pay off the interest and so the capital sum does not accumulate

I havent done equity release as it is such a terrible idea

[kendra20]

It doubles after 10yrs at 5.75%