Lifetime Mortgages Explained: Equity Release
| Money : Mortgages The most popular form of equity release as a mechanism to release cash that is stored up in the value of your property is a so-called lifetime mortgage. This is where you borrow a sum from a lender against the value of your property. You then continue to live in the property almost as normal, but unlike with a standard mortgage, you will not end up paying interest during your lifetime. And therein lies the rub - because the interest gets, as it were, 'added up' and tacked on to the end of the loan, which is then paid off from the proceeds once the house gets sold, which will usually be the end result when either you can no longer live in the property and thus move to a care home or similar, or die.
 Questions about equity release:
|
|
Tweet this!
