Property News · January 28, 2017

Is equity release a good way to pay off your home loan?


You’ve been paying interest only, but finding a large sum to cover the capital is a problem. We look at equity releaseThe number of people raiding the equity locked up in their home to pay off their interest-only mortgage is set to rocket. But is signing up for an equity release plan a good idea? And what are the other options for those who took out an interest-only deal perhaps 20-25 years ago who are now staring down the barrel of a hefty shortfall?The City watchdog has identified 2017-18 as the first of three “peak periods” when large numbers of interest-only mortgages will mature. It estimated that about 85,000 of these home loans are due for repayment this year, and then the same again next year. This has in turn prompted claims that the equity release market stands to benefit hugely. Continue reading…

Source : theguardian.com
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