Things to consider with Equity Release

Don't Over Borrow

One of the most important things to consider with equity release is not taking more money than you need.

With lifetime mortgages, you are charged interest on the money you borrow, even if you are not making monthly repayments. This means that if you take more money out of your property, you will be paying more, than you will earn interest on it in a savings account.

Also, the interest rate charged generally increases as you borrow more money from your home.

The positive effect of equity release is that it can release money for a comfortable retirement whilst being aware that the interest builds up over the lifetime of the plan and is added to both the loan and the interest added to it known as ‘compound interest’.