You are here: Home - Your Community - Top Comments -

‘Even borrowing £40,000 could be £320,000 some 35 years later’ – Star Letter 09/11/2018

by: Mortgage Solutions
  • 09/11/2018
  • 0
‘Even borrowing £40,000 could be £320,000 some 35 years later’ – Star Letter 09/11/2018
Each week, Mortgage Solutions and sister-title Specialist Lending Solutions choose the most honest, thought-provoking or opinionated letter or comment of the week posted under our stories or to the editorial team.



This week, it’s Andy Wilson commentating under the story FCA raises alarm over ‘younger’ equity release borrowers


As an active equity release adviser I do sometimes wonder if the minimum age on all plans that have the potential to roll-up the interest should be no earlier than 60.

A 55 year old taking out a plan could easily see rates at around six per cent given they cannot borrow a significant proportion of the property value and may tend to borrow the maximum allowable for their age.

This rate will double a debt in only 11½ years – so if they live to age 90, an initial debt will have doubled three times – thus even borrowing £40,000 could be £320,000 some 35 years later.

I do not see a lot of clients between the ages of 55 and 60 who desperately need equity release in such a way they cannot service at least part of the interest on the loan.

Those that do receive a very thorough warning [on] how the debt could increase and impact on later life.

Andy Wilson

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
Bob Hunt
FCA should leave mortgage market alone until Brexit uncertainty lifts – Hunt

Haven’t we got enough on our plate right now? I can’t help thinking this is a particularly pertinent question to put...