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On the face of it, it seems a no-brainier. Your house is worth lots, you need a regular income for an undetermined, but finite period.
But on what terms? Whoever takes on the lending risk will want their money back, and more on top. You can end up with this rapacious bullshit:
https://www.bbc.co.uk/news/uk-england-nottinghamshire-67122324
kl-
"You can end up with ... " is not an argument. You can find awful precedents for most things.
Terms would be for gov to establish.
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But on what terms? Whoever takes on the lending risk will want their money back, and more on top
Well yes. And I don't see anything wrong with that. Why shouldn't a lender make a fair return? Much like a residential mortgage.
Although I do find the idea of a state provider attractive.
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Borrowed £19.5k for 26 years, paid back £208k - equivalent to ~9% interest. Doesn’t seem too bad…
Bearing in mind that gain was from completely unearned asset appreciation.Edit:
I just scrolled down a bit - the lender ‘typically’ taking 75% of appreciation is wild.
🅑🅐🅣🅣
hugo7
Dramatic_Hammer
Equity Release feels very much like a product that should be dominated by building societies and/or cooperatives.
On the face of it, it seems a no-brainier. Your house is worth lots, you need a regular income for an undetermined, but finite period.
It's supprising that there isn't a commonly used, straight forward and fairly priced product from a reputable organisation.