Are you curious about what is equity release and whether it is a good idea? Equity release, a financial option worth considering, presents a range of advantages akin to refinancing.
what exactly is equity release?
It is securing a loan by leveraging your property as collateral. In this arrangement, the bank will present a payment schedule based on the chosen loan amount, typically accompanied by interest payments on the principal sum borrowed. This payment structure can extend up to 25 years and serves the purpose of repaying the mortgage or regaining ownership of the property.
It is crucial to bear in mind that failure to repay the loan within the specified timeframe may result in the bank or lender assuming possession of the property.