Advice on releasing equity from house

[dgs]

Hi I would like any advice on releasing equity without going down the major company equity release schemes which seem to cost an arm and a leg, eg borrow £75k give back £75k + another £75k in interest = £150k.
The house is worth £300k with an outstanding amount of mortgage overdraft and mortgage of about £35k.
I am 62 and my wife is 68, we are looking for an amount of about £75k to pay off the owing amount and to make some improvements to the house eg gutters fascias sofits. new boiler. turf the back garden etc etc.
In an ideal world some entrepreneur would stump up the £75k and at a later date would receive the £75k back + 40% interest
(30k) = £105k and the 25% of the property value would be linked to the value of the house if the value rose over a period of 10,20 or 30 years. But there is no facility for that is there?? What other options do i have without having to pay a monthly fee to some major company? Any advice is appreciated. Thankyou.

[nemesis45]

Re: Advice on releasing equity from house

Hi I would like any advice on releasing equity without going down the major company equity release schemes which seem to cost an arm and a leg, eg borrow £75k give back £75k + another £75k in interest = £150k.
The house is worth £300k with an outstanding amount of mortgage overdraft and mortgage of about £35k.
I am 62 and my wife is 68, we are looking for an amount of about £75k to pay off the owing amount and to make some improvements to the house eg gutters fascias sofits. new boiler. turf the back garden etc etc.
In an ideal world some entrepreneur would stump up the £75k and at a later date would receive the £75k back + 40% interest
(30k) = £105k and the 25% of the property value would be linked to the value of the house if the value rose over a period of 10,20 or 30 years. But there is no facility for that is there?? What other options do i have without having to pay a monthly fee to some major company? Any advice is appreciated. Thankyou.

Good evening, welcome to LB,

This is not my area of expertise apart from knowing one has to be extremely careful with whom you deal.

Hopefully someone with more knowledge than I will be along to help.

nem

[dgs]

Re: Advice on releasing equity from house

Thankyou

[Snoopy1948]

Re: Advice on releasing equity from house

Hi dgs .....

I have worked in financial services over the years and have this objection to equity release schemes that apart from supplying you with capital ( or the purchase of an annuity ), they are just another vehicle for someone to make money out of you. That's the bit I don't like but you have already seen that very point.

You don't talk about making any repayment from income so is that something you actively wanted to consider or were you looking for a plan to roll up interest to be paid from the eventual sale of the property?

One option is Lifetime Mortgages that may suit you better but frankly I would pay an IFA an agreed upfront fee to have your options explained with recommendations to suitable products. Aviva have a link to this very product that outline the procedure in some detail.

http://www.aviva.co.uk/equity-releas...-mortgage.html

[alan56]

Re: Advice on releasing equity from house

A home equity loan is a good alternative when you need to make repairs to your home. In this kind of loan, you have a maximum you can take pout but you don’t need to take out all the money available to you. You take money out as the need arises. You pay interest on the money you have take out.

A reverse mortgage can be very similar to a home line of credit in the sense that you can use a line of credit as a form of getting paid. You can also choose a lump sum or monthly payments. It differs in the fact that you don’t need to pay the money back. Instead, it reduces the amount of equity that you have left in your home.


Many retired people take a reverse mortgage to supplement their income, for emergencies or to make improvements in the house. This is the chosen alternative when you don’t want to have to pay back any money back to the bank.

http://hecmloan.xyz/home-equity-conversion-mortgage/