Which?, the Consumer Association’s watchdog and champion for rights, has condemned equity release mortgages. Their damning report focuses on the cost of the loan, its inflexibility and the fact that it may leave homeowners with no money later in their lives.
Which? is an independent charity, and aims to inform the consumer accurately. The assessment has provoked a fierce retaliation from lenders and equity release providers, with strong claims that their products do not put their clients at risk, and that their customers are almost always satisfied.
An equity release scheme, sometimes termed a lifetime mortgage, allows homeowners to take money out of their property, by borrowing against the equity stored in their houses. They do not pay interest on it as they go. In theory, this allows homeowners to use the value of their home without having to downgrade house or start making payments. When the homeowner dies or moves into care the mortgage lender collects the debt, and the interest.
Which? have referred to the schemes as ‘high-risk.’ with the possibility to turn into a ‘financial nightmare which can stay with you the rest of your life.’ Which? instead claim that downsizing, or borrowing from alternative sources could be a more sensible idea.
Equity release mortgages condemned by watchdog
Mortgage Quote Line
0845 108 0505
Equity release mortgages condemned by watchdog
Fri, 06 Jan 2006
Recommended links
Information on equity release mortgagesGet a quote using our mortgage enquiry form
Mortgage protection insurance
Mixed results for equity release mortgages, figures show
Equity release mortgages may have bright future
Equity release mortgages popular, expert says
Equity release mortgages on the rise
Equity release mortgages help lifestyle choices, expert claims
Equity release mortgages need planning
Equity release mortgages to flourish in 2006, experts say
Equity release mortgages falling in popularity
Equity release market increasing year on year, expert states
Caution in the lifetime mortgages market
Shop around for lifetime mortgages, report says
More financial advisers specialising in lifetime mortgages, website claims
The Pru cut rates on flexible lifetime mortgages
Lifetime mortgages becoming more competitive
Demand for lifetime mortgages keeps growing
Lifetime mortgages a must say Prudential
Pru receive lifetime mortgages award
Mortgage lender expands lifetime mortgages
Lifetime mortgages results announced by FSA
Flexible drawdowns could save thousands on lifetime mortgages
Prudential to start lifetime mortgage calculator
Lifetime mortgage rates cut at Saga
Lifetime mortgages a must say Prudential
| mortgages news |
|---|
| Mortgage lending still low, figures reveal - Mon, 05 Jan 2009 |
| Mortgage lenders will follow Nationwide's lead, expert claims - Mon, 05 Jan 2009 |
| Nationwide to freeze tracker mortgages - Fri, 02 Jan 2009 |
| More News |
Mortgage Rates by Lender 
Worried about Mortgage Repayments?
- Join our petition to Government to bail out burdened individuals, not just banks.
Free Mortgage Quote
Mortgages in Scotland
Equity Release
Switching Mortgages
Home Reversion Plans
Commercial Mortgages Arrears & CCJs?
Remortgages- Sub prime mortgages
- Arrears, CCJs
- Self certification
- Debt consolidation
Protect Your Mortgage