Thanks Susan, I thought that’s what you meant, but I didn’t know there was any interest charged.
I thought ER meant selling a % of your home, you continue to live there till you die, the place is sold , the ER people take their %, your inheritors take the rest. I’m sure it’s not quite that simple, and there are admin fees …
There are various ways of releasing the equity in your home, depending on what it is you wish to achieve. Your personal circumstances, whether or not you have family you might wish to leave an inheritance to, etc., etc.
I haven’t become involved in this and doubtful if I ever would. Basically though, other than the person who wishes to gain from using a scheme such as this to meet whatever their needs for this may be, there is only one ‘winner’, the company the arrangements are made with. That is what they are in it for, to make money, that is why they are in business.
As posted previously by myself, always take good advice and go into all this thoroughly if considering this is the way you wish to go.
There is lots of advice out there but obviously look for independent advice. The links below explain about equity release and are just two of many where advice can be found:
So … many different ‘plans’ on offer, some with different names. One plan with a dodgy company can give other plans and providers a bad name.
I guess two things are for sure …
The ER company never loses out.
You never lose out, coz you’re dead.
That is about the sum of it and possibly it’s like everything in life. It’s all ‘dodgy’ if used wrongly which is why it’s so important to look at what happens eventually, not to what is to be gained immediately. That is of course, if there is any interest in future events. For some there is not, that is their prerogative to do with their own assets what they will.
If going in for equity release of any kind the old maxim of ‘caveat emptor’ is a good one to bear in mind though. 
Thanks everyone food for thought?
I wonder what would happen to banks or rather, what will banks do, with these reverse mortgages if the Coronavirus does kill 1% of the population and house prices plummet?
It is mostly the elderly that take out these schemes and the mortality rates for them is higher than the general population.
It is not like those share portfolio margin loans where the bank can ask borrowers to pay them money if the value of the shares falls.
Spare a thought for those young people who have a massive mortgage if house prices dive and the house is worth less than the money they owe if such a disaster happens (let’s hope it doesn’t but it is interesting to consider)
They’ll take the hit and sack their actuaries.
Good move RS ,Good luck to you!!
Donkeyman!
equity
what about sell my house and rent a flat?
