Is an equity release an option if my mortgage fix ends or I’m too young?

Q. Should I consider releasing equity after my 2 year fixed rate contract (15 year repayment mortgage) ends? I’m 60 next year and plan to work until I’m 67. I have some decent local government and private pensions, as well as his £40,000 additional voluntary contribution to cover my retirement mortgage payments.

My property on the market is about £300,000 and my outstanding mortgage is £150,000 (but probably £130,000 when the fixed rate expires). I bought it last year at its peak.

I have no children and no one wants to leave an estate after my death. As such, he has little ambition to pay off the mortgage (although he uses AVC for that).

What matters to me is the low monthly payments. Should you consider an equity release or are you too young?

a No, the minimum age is usually 55, so you are not too young to consider releasing equity, but too young to raise the £130,000 you need to clear your current mortgage. The maximum equity that can be released at age 60 is his 39.2% of the property value. money release 55+ years of age specializing in finance. If you wait until you are 62, your maximum release will be slightly higher by £123,900.

The main advantage of the Equity Release is zero monthly payments rather than less monthly payments. This is because interest on the loan is added to the amount originally borrowed. So the amount you owe increases each year, and so does the interest charged. This is not really a problem for those who want their heirs to inherit as much of the property’s value as possible, as they do not want to pass on their property to anyone.

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