Considering equity release

Thanks for replies. It's made us think a lot more about it. It's not as straightforward as I thought it might be.

He could get a zero interest credit card for that amount. I put all my divorce fees on a credit card as I didn't have any funds at the time to finance it. I'm still paying them off at zero percent. As the deal comes to an end I transfer it to a different zero percent card. It's nearly paid off. I think equity release to add to your property makes sense but not for anything else.

Could you take out a small mortgage on your property it could be cheaper than a bank loan.

We’ve taken £20,000 equity release with Legal and General, we wanted to build an extra room on our bungalow, we pay £65 a month interest.

I doubt you could get equity release for as little as £10,000. There is usually a minimum amount of £20,000 or more.

I'd agree a bank loan makes more sense ,it can be secured on your home if necessary but for that amount I dont think they would ask for it to be secured .

A bank loan is your best bet, not equity release( don't even think about that ).

Well you could go down the equity release route Rosiebee but as you said you would need to thoroughly look into it. Key Retirement is a good reputable company who would be able to advise you with no pushy salesmen or obligation to go ahead with it if you felt it wasn't right for you.

It can work for some as of course house prices have rocketed over the years and most of us have got a fair bit of equity built up in our properties.

However as you are only talking about a fairly small amount of money, a bank loan may work out cheaper for you especially if you envisage being able to pay it back reasonably quickly.

Although you can pay the interest, or 10% of the loan p.a. with equity release, the idea is to let the debt build up and be settled at the end of the term, ie when you pass away or go into a care home. If you don't pay the interest each year it is compounded, although, again, you are talking about a small amount.

We have done it, mainly to avoid inheritance tax for our offspring, but everyone's situation is different.