18 May

Equity release debt is growing – can I apply for mortgage holiday?

Reader thwarted by lockdown from selling mother’s home to pay for her care home costsQ My mother took out a lifetime mortgage for equity release in 2011. The amount borrowed was nearly £100,000 (about half the value of her home at that time) at a rate of interest of 7.54%. Following a stroke, she moved into a nursing home in December 2019 so I am now in the process of selling her house to fund the care home fees.By lockdown in March, I had a buyer in place but activity has been frozen for the last three months. Meanwhile the debt repayable to the equity release firm is apparently increasing at £230 a week, which would reduce the equity available at the end of the lockdown period by over £3,000. Continue reading…

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