I thought this was interesting

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15 years 5 months

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Paul

Good of you to post that with some much personal information. I found it very interesting.

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Average equity release rates are 6.5% so there will be many areas of the country where you will end up on the wrong side of the equation when the house is sold.

And this will trouble you greatly in the afterlife from where you will be watching?

Moggy

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For many it will be funding their care as they live longer into greater old age. And for some, not me, they are concerned about leaving something for their heirs. Although increasingly that will be irrelevant for all but the very wealthy.

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I have the impression that equity release mortgaging is not fully understood by some...

Me for one; I've no experience with these products but isn't it still a form of borrowing?

My guiding principal with financial products is that they are all intended to make the organisation offering them end-up with more of your money than they had before you signed-up! Yes, the product is possibly a necessity but I never forget that guiding principal (even though it isn't always directly your money they're after).

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So since taking that out 2 years ago the mortgage is now £56k something and the house is now valued at £325-£350k...

When was your house valued at £250k?

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Mrs Waco and I have no kids.....only our cat.

So......such a scheme may allow us to travel the world and still make a profit !

Anything left to the Salvation Army, Cats protection league and the British Red Cross !

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...and publishing that book! ;)

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Me for one; I've no experience with these products but isn't it still a form of borrowing?

.

Pure and simple, CD. But some seem not to comprehend that is what it is. It is a mortgage, but one on which the interest and capital are paid back by the borrower at the end of the term and/or when the house is sold.

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CD you cannot pay back money when you are dead as Moggy clearly put it also my house was valued in 2011 November.
Since then I have had double glazing done the garden landscaped and new central heating free courtesy of the now defunct Government Warm Front scheme. I think the house was also slightly undervalued as all I needed was the amount I asked for in my previous post.
Yes it is borrowing but money that will never be paid back by me or my wife,just the sale of the property when we are brown bread.
waco got it in one!

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But, correct me if I am wrong, Paul, but the term is fixed and you might not be brown bread - just old, sick, unable to look after yourselves etc etc.....

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But, correct me if I am wrong, Paul, but the term is fixed and you might not be brown bread - just old, sick, unable to look after yourselves etc etc.....

Most equity release schemes are in effect a life time mortgage, the variance is, some rely on the property sale to clear the mortgage, there are also schemes where the owner pays interest only on the mortgage, but they are both as it says on the tin, life time not fixed term.

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So in a possibly not so atypical example of a couple in their mid 60s on a 6% mortgage with house price inflation in their area averaging 4% pa over 20 years a point might be reached where they have no equity in their property. What then? Do they live on rent free?

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On this scheme yes

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But, correct me if I am wrong, Paul, but the term is fixed and you might not be brown bread - just old, sick, unable to look after yourselves etc etc.....

Then if you have any equity left you can sell the house and go into care. If no equity left I assume the Local Authority will have to pick up the bill or probably euthanase you!

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On this scheme yes

Intriguing - I must check it out.

And of course it is precisely because of the dread of local authority care and the totally unlikihood of state euthanasia that people want to use the equity in their property to pay for their old age care.

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Mortgage or not the Local Authority will have your house off you to pay for your care in a home.

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Over my dead body!

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Pop round CD and I will see what I can do!

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Mortgage or not the Local Authority will have your house off you to pay for your care in a home.

But if you have no equity in it it belongs to your lender not to you.

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But if you have no equity in it it belongs to your lender not to you.

When we downsized on retirement, our daughters "bought" the new property and we have a free secure tenure for as long as we need/wish, rather different tactic than the usual sign the house over etc, etc.