home equity loans for retired people

Last post Tue, May 26 2009, 12:31 PM by kiwi fruit. 0 replies.
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  •  Tue, May 26 2009, 12:31 PM

    home equity loans for retired people

    My parents have one of these with Norwich Union.

    We did not know they had taken it out.

    My parents are now concerned that there will be v little inheritance for us as the interest on the loan grows & house values drop.

    Are these loans reversible - if money could be sourced to pay NU back now - can the loan be terminated? Or are they fixed until sale of the house or death?

    I have looked on NU website & it implies that loans such as these should be discussed with children /inheritors of family estates before embarking on them & that they wil discuss issues with those who may be affected.

    We had no knowledge of the loan etc ( although understand my paretnts may not have wanted us to know about it)

    If we had known about their intentions then we would have strongly disagreed & would have tried to find another way of sourcing money for them.

    Think the equity release has been in place about 6 years.

    Any suggestions/comments?

    • Post Points: 5