Equity Release from Home, or Not?

by Dee

Hi

My name is Dee and I only joined the site a few minutes ago. I was looking for advice on Equity release from my home.

I retired from the NHS in September last year at the age of 66.

We own our own house and have no mortgage on it. I am wondering whether to release some equity from the house as I am finding the change in my finances a small struggle. (that could lead to a big struggle).

On enquiring about Equity Release from one of the well known companies. I was quite shocked to find that over a five year period the interest rate is almost double. I feel it is a bit of a rip off and wondered how other members feel.

Is there an alternative. I could downsize but I love my home and was thinking of running a small business from it that I would not be able to do if I moved to an apartment.

I would be grateful for any advice

Best wishes

Dee

Wendy: Dee, you didn't leave your location so I am unsure if you are in the USA or elsewhere. My guess is that you live outside the USA as the "equity release" term is not familiar to me.

Here, seniors can get a Reverse Mortgage on their home.

If you will add your location below, maybe someone can help you better! thanks!

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Reply to Glenda
by: Dee

Thanks Glendale

Sound advice there.

I finished paying my mortgage three years ago
and yes what a wonderful feeling.

I do think Equity release as we call it here in
the UK is an exploitation of senior citizens.

I will bear your advice in mind.

Thank you again for taking ghe time to reply.

Dee

i would not borrow
by: glenda

Think over your situation carefully and be grateful that your home is free and clear.. any bank would love to lend money on a nice home with no mortgage....

this is my own personal opinion - I would rather struggle a little bit and cut out any extras if there is any, maybe do something part time and not have to worry about my home being mortgaged again at your age.

I am a bit younger and have had my home paid for since I was 55 years of age. wow what a good feeling and yes I do struggle a little at times but at least I don't pay rent to anyone...

Reply
by: Dee

Thank you JCJ.

I will keep your advice on running a business
From my home in mind.

I would be interested in the alternatives in the USA to Equity release and downsizing?

Thanks again

Dee

Retired Credit Counselor
by: JCJ

Hi Dee,

The good news is that you have gone over your documents and decided that maybe there are some less expensive alternatives. Here in the USA, there are alternatives, some of which include downsizing as you have mentioned.

My comment is that you mentioned running a small business out of your home. Be aware that running a business is in some cases more that you might realze. Do not get yourself into a situation that might compound your problems.

I don't have the answer, but if you keep on asking, I'm sure you will feel better with whatever decision you make.

JCJ