Benefits and Risks of Equity Release

Equity release schemes are a popular type of mortgage for those that are old enough to qualify. If you are thinking about getting involved in this type of mortgage, there are a few things that you will need to consider first. Here are some of the benefits and risks of equity release mortgages.

Benefits

The big benefit with this type of plan is that you are going to be able to get money to do things that you would otherwise be unable to afford. You could potentially use the money anyway that you see fit.

Another benefit of most of these programs is that you are not going to have to make a mortgage payment. You will be able to get the mortgage and you will not have to repay it until you sell the property or pass away.

Risks

The biggest risk with this type of plan is that you are going to have to give up a good portion of your equity. If the house appreciates greatly in value, you could end up paying a lot more for this type of mortgage then you would have with a more traditional type of mortgage arrangement.

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