Charlie Weston, writing in the Irish Independent – states the high cost of specialised mortgages are forcing the sale of homes and wiping-out inheritances. No repayments are made on “Equity Release” products by older people, which means huge debts are built-up. The money is due when the owner dies or house is sold.
Equity Release for older people – is a way of retaining use of a house while also getting a lump sum, using the value of the house. The catch with the versions aimed at older people is that they must be repaid at a later stage, usually at death. No repayment are made during the term of the equity release mortgage. But, crucially, this mean compounded interest is added to the capital through the term of the loan.
Read Irish Independent Elderly Facing Massive Debt Time-Bomb.