Equity Release Products – Aimed at Elderly.

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.

 

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One Response to Equity Release Products – Aimed at Elderly.

  1. patrick joseph mc January 18, 2016 at 9:43 am #

    Some things never change only the advertising. We never had so many, so called experts but they all seem to have knowledge after the event. This product was widely endorsed at the time it was put on the market. Many years ago in school as a 13 year old, the teacher impressed on us the dangers of hire purchase. His advice was never for pleasure only and for work reasons only when it generated an income far greater than repayments and a saving towards a replacement of the item. A few years ago I met a business man who left school at 14 and was not effected by the recession. His motto was the same as the wise teacher. This is nothing new as farms, family homes, businesses have been lost over the years as money was advanced against an asset could NOT be repaid with compound interest and legal fees. For some the fall in property prices, pensions,increased taxation and the cost of nursing homes made this product unworkable with two competing demands on the original asset

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