My equity release hell

IF YOu are tempted to release equity from your home, I would like to tell you about my experience. It caused me severe anxiety, a sense of shame and considerable financial loss.

In 2001, I was newly widowed with a loan of £15,000 to pay off and no savings. I decided to inquire about equity release against my property, which I owned outright.

Friends advised me to be cautious and one agreed to attend the second meeting with the insurance company agent. However, the agent arrived an hour early and persuaded me to sign up for equity release then and there.

The fixed compound interest was 6.4 per cent and the loan £54,000 — far more than the £15,000 I needed.

I realise standards in the industry have improved since then and people are now told that the debt doubles in 15 years, but I did not realise then

that this rate of repayment would consume the whole value of my property over 15 to 20 years. With statements piling up outlining my debt to the insurance company, I became increasingly anxious about the future.

At no point had the insurance agent clarified I could not be evicted from my home or that the debt could never exceed the value of the house at my death or requirement for long-term care. I went to the ombudsman, who judged I had been sold much too high a loan at high interest.

My advice to anyone considering equity release against their property is to obtain several estimates, scrutinise the repayment plan and ensure the equity released is only what is required. MARION HACKNEY,

Torbay, Devon.