The UK’s Financial Conduct Authority has declared that although seen historically as “dirty”, equity release loans are likely to become a “normal” component in the financial planning of the over 55s.
In many cases where property is owned (or at least mortgaged), the over 55s can have a significant asset (their home) but be cash poor. Equity release loans might be appealing to this demographic as the amount borrowed is only repaid when they die. Of course this places a burden to those left behind and as with all loans the amount borrowed is far lower than the amount eventually repaid, which in this case comes from the borrower’s estate.
Find out more about equity release loans.