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Pros and cons of Equity Release


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If you have no children, and getting older and looking to supplement your pension and enjoy your later years then go for it.

 

If not above - then I would not recommend it. I look at it this way - if it was a good idea and popular/safe then it would be more heavily advertised and the "big" financial institutions would get involve. Some "big" companies did get involved when it first started but quickly pulled out.

 

One solution could be to downsize if possible and use the equity left.

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Moving to a smaller house is a good idea, if appropriate. I don't think it matters if the OP has kids or not, its their money. I don't expect my parents or in-laws to pass their money to me/us. They have both worked hard all their life and put their kids first, its their money to spend.

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@adc0711 - your post is very brief and it might be helpful if you were to say why you are asking this question. You clearly want information and not rhetoric so could you say whether you are considering it for yourself and if so, what are your circumstances? I have a friend who has just done this and if you can describe your circumstances more clearly I can get some information from her. However, her situation might be different to yours so please post back if you want me to ask her. It is not the kind of question that can be answered in a couple of sentences and I really don't want to waste her time if it is not relevant to you.

 

Factors such as the following are important:

Age and health of applicant.

Property value.

How much equity is required.

Why the money is needed.

Whether there is a mortgage to clear.

Dependants.

Freedom to move house in the future.

Monthly payments (if any).

 

Age UK website might be a useful place to start. Failing that, do what my friend did and make two or three appointments with companies who offer this and make copious notes. It is complex and you have to determine what your needs are.

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