Do you understand equity release?...

Interested to know how many people know what equity release is (without looking at the information and finding out about it!)

Re : Do you understand equity release?

I think you have to be quite careful when it comes to equity release.

It can seem like a little bit too much of a good thing to be able to release money from the house and then not have to pay a penny until you die, which of course you won't then pay, but it will affect how much money your relatives get.

I suppose if you have no next of kin or anyone that close there is much more incentive to release equity than if you do!

Re : Do you understand equity release?

Yes equity release can be a real double edged sword.

I always think that it is good for the person who takes it out as they get little of the bad effects, but for those who are left afterwards and see a chunk of value of the house they would inherit having gone for less than its market value can be a little galling.

Saying that as Geoffrey says if there is no-one you are close to and therefore you don't really care about the value of the house as there is no-one to pass it onto then you may as well release as much equity in the property as you can and enjoy the money

Re : Do you understand equity release?

No I don't really understand what equity release is.

Is there any way of getting a clear and simple explanation of financial terms such as this?

I generally find it quite confusing when these terms are bandied about in the media and I am sure that most people don't really understand all the financial jargon.

From my understanding equity is something to do with money like stocks and shares but maybe I'm wrong?!