Equity Release Pitfall To Avoid
Equity release is considered as an apt solution for the retired and non-working individuals who need to have lumpsum cash with them for old age security. More so, when they don’t want to put their property as a security or simply sell it and move to a new one to realize that amount of money. However, while you are planning for equity release you should look into the potential pitfalls and risks it may have. Here are a few major points to take care of as per experts: 1. Mounting interest bills If the equity release deal you have picked is based on lifetime mortgage, you must have borrowed money keeping your home as security. This is generally a full-term plan of fixed nature which could exceed to higher limits, even more than the property value if you live for a longer period. You should always go reputed services that are known to offer options with no negative-equity guarantee and better if you can pay your sum in easy monthly installments. 2. Missing out on hous