The right time to release equity?

Is now the time to take advantage of equity release? Interest rates for such schemes have remained relatively unaffected in a credit squeeze that has racked up the cost of traditional home loans. Experts are arguing that equity release now provides an attractive option for asset rich, income poor third agers looking to release capital to fund desired lifestyles in retirement. But housing values and age longevity could conspire to produce, ultimately, a very bad deal with nothing left to pass on to dependants. In essence, the more your house is worth, the more capital you can release, subject to any age restrictions imposed by the scheme provider. However, the longer you live the bigger your estate's interest bill will be from an equity release scheme. The amount that can be borrowed also increases with age. A 65 year-old... [read full story]