Lump sum or payments with equity release
January 18th, 2009
The advantage of equity release is that you don’t need to pay the interest while you are living in the home. When you die or move into a care home then the loan plus the interest amount is taken by the company through the proceeds of the transaction. One thing to note about is that the interest which is added monthly or yearly updates the principle amount for calculating the next interest. Thus the amount that you owe grows quickly and thus it could happen that you have spent the full worth of your home even before it is sold. This thing should be thought for before if you are taking the equity release loan in lump sum amount.
Entry Filed under: Home
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