Raising money

[seabrook]

My husband & I are pensioners ( 69 & 72). We have outstanding mortgage of �65,000. House is worth apprx. �160,000. What would be the best way to raise �20,000 which is needed mainly for house improvements (double glazing,new heating system) and would also clear a couple of credit card debts and give something to family.We have state pensions and I have private pension. 

[Mrs_Pegasus]

You really need to speak to an independant financial advisor.  Your options include taking an interest only 'loan' out which would mean paying on the interest with the assumption you would sell the house if and when anything happens to you.  Some people may advise taking the equity release route, where you dont have to make repayments but the interest if built up until such time as the house is sold.  The drawback is that there can be little or no value left in the house when sold.  Due to your ages and the fact you still have a mortgage may well mean you cant qualify for a further loan based on your income.

[seabrook]

Thanks for advice Mrs_ Pegasus. I had thought I would consult a financial advisor before doing anything else.I was wary of Equity release schemes knowing how quickly interest can mount up as you say. Was hoping perhaps there was some other avenue open to me.Thanks again anyway.