Equity release

[Scarlett]

My Mum is thinking about buying a more expensive house and releasing the equity in her property to live on. Does anyone know if these equity release plans are safe? What do they really involve? ie- what does the lender take back when the customer dies? The amount they borrowed? Loads of interest? a percentage?

[Ethel]

I am confused - if she buys a more expensive house there will be less equity.

The house will be worth more, but your mum will have to pay more for it.

A good explanation here:

http://www.thisismoney.co.uk/mortgages/mortgag es/article.html?in_article_id=406142&in_page_i d=58