Comments on: The safe way to do Equity Release or The Lifetime Mortgage http://www.williamgeorgeifa.co.uk/2008/07/04/the-safe-way-to-do-equity-release-or-the-lifetime-mortgage/ Independent Financial Advice Wed, 09 Mar 2011 10:12:43 +0100 http://wordpress.org/?v=2.8.6 hourly 1 By: Commenter http://www.williamgeorgeifa.co.uk/2008/07/04/the-safe-way-to-do-equity-release-or-the-lifetime-mortgage/comment-page-1/#comment-37 Commenter Tue, 05 Aug 2008 14:27:12 +0000 http://www.williamgeorgeifa.co.uk/2008/07/04/the-safe-way-to-do-equity-release-or-the-lifetime-mortgage/#comment-37 It's not bad advice to free up some income now against your property. Since property values increase (always in the long term) the mortgage value you take out now becomes a smaller percentage of the future value of the property. For example, say your home is worth 250k today, you take a mortgage of 25k. In 10 years time even if you haven't made any capital payments your house will be worth more, probably 350k, however your mortgage is still 25k, a much smaller percentage of the value. Not to mention that the value of 25k in 10 years time is also inferior. It’s not bad advice to free up some income now against your property. Since property values increase (always in the long term) the mortgage value you take out now becomes a smaller percentage of the future value of the property.

For example, say your home is worth 250k today, you take a mortgage of 25k.

In 10 years time even if you haven’t made any capital payments your house will be worth more, probably 350k, however your mortgage is still 25k, a much smaller percentage of the value. Not to mention that the value of 25k in 10 years time is also inferior.

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