Equity Release

[barney4444]

Hi. If we released £40.000 from our home but paid the interest every month, does anyone know ( round figures) how much it would cost per month.
Thank you in advance..

[dannyk13]

You don't pay anything.Interest is added on to the loan which only becomes due when you die.

[barney4444]

Thanks Danny but there is the option of paying the interest every month instead.

[davebro]

About £100 pm. ? Depends what best interest rate you can get.

[dannyk13]

OK, I didn't know that.

[davebro]

Rather than equity release I think I would call it an interest only mortgage - not easy to come by these days.

[Gizmonster]

According to:

https://www.moneyrelease.co.uk/Equity-Release/Interest-Rates/

The average interest rate is 3.95%.

If we assume 5%, the interest would be £2000 per year = approx £170 per month.
This is assuming there are no extra charges on top, etc .... it's just to give you a rough idea :)