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Equity Release

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barney4444 | 11:25 Sat 11th Sep 2021 | Business & Finance
6 Answers
Hi. If we released £40.000 from our home but paid the interest every month, does anyone know ( round figures) how much it would cost per month.
Thank you in advance..









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Gizmonster
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According to: https://www.moneyrelease.co.uk/Equity-Release/Interest-Rates/ The average interest rate is 3.95%. If we assume 5%, the interest would be £2000 per year = approx £170 per month. This is assuming there are no extra charges on top, etc .... it's just to give you a rough idea :)
11:46 Sat 11th Sep 2021
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Avatar Image dannyk13
You don't pay anything.Interest is added on to the loan which only becomes due when you die.
11:31 Sat 11th Sep 2021
Avatar Image barney4444
Question Author
Thanks Danny but there is the option of paying the interest every month instead.
11:37 Sat 11th Sep 2021
Avatar Image davebro
About £100 pm. ? Depends what best interest rate you can get.
11:43 Sat 11th Sep 2021
Avatar Image dannyk13
OK, I didn't know that.
11:43 Sat 11th Sep 2021
Avatar Image davebro
Rather than equity release I think I would call it an interest only mortgage - not easy to come by these days.
11:44 Sat 11th Sep 2021
Avatar Image Gizmonster
According to:

https://www.moneyrelease.co.uk/Equity-Release/Interest-Rates/

The average interest rate is 3.95%.

If we assume 5%, the interest would be £2000 per year = approx £170 per month.
This is assuming there are no extra charges on top, etc .... it's just to give you a rough idea :)
11:46 Sat 11th Sep 2021

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