Mis-sold Equity Release. What Are The Downsides to Equity Release And Are You A Victim?
- Claimline Legal
- Dec 1, 2023
- 2 min read
WHAT ARE THE DOWNSIDES OF EQUITY RELEASE AND ARE YOU A VICTIM?
Equity release is a way of accessing the value of your home without selling it, but it has some drawbacks. Some of the pitfalls of equity release are:
You may end up paying more interest than you would on a regular mortgage, and the debt can grow quickly due to compound interest.
You may reduce the amount of inheritance you can leave to your family or friends, as the loan and interest will be deducted from the sale of your home when you die or move into long-term care.
You may lose your eligibility for some means-tested state benefits, such as pension credit or council tax support, as the money you receive from equity release may count as income or capital.
You may face expensive early repayment charges if you want to pay off the loan before the end of the term, or if you want to move to a different property.
You may limit your financial flexibility in the future, as you may not be able to borrow more money or switch to a different equity release provider.
You may incur various costs and fees when taking out an equity release plan, such as valuation fees, legal fees, application fees, and advice fees.
Equity release is not a decision to be taken lightly, and you should always seek independent financial advice before signing up for any scheme.
You should also consider other alternatives, such as downsizing, remortgaging, or borrowing from family or friends. Equity release may be a suitable option for some people, but it is not without risks or costs.
If you feel either you or a loved one has been mis-sold Equity Release contact Claimline Legal today on 0800 779 7457 for a free no obligation case review. Alternatively, you can go to our website at www.missoldequityrelease.co.uk and even start your mis-sold equity release claim online.
Comments