Reverse Mortgage

[wellywood]

Anyone any experience of Reverse Mortgages?

 

[Bod]

Never heard of them. How do they work?

Bod

 

[Glynne]

Glad it's not just me, I just had to Google it.
At a very cursory glance it looks complicated and like a lot of schemes to release cash from your property, I'm guessing it might be swayed in favour of the provider?

 

[Phil Pascoe]

It's 2014. Everything is swayed in favour of the provider .

 

[finneyb]

Pete,

Known as Equity Release in UK.
Last week the BBC Moneybox prog did a piece on them listen at http://www.bbc.co.uk/programmes/b04lp5c0
Legislation will probably be different NZ to UK so bear that in mind, but it does cover some of the pitfalls .

HTH

Brian

 

[Flynnwood]

4 words;

Be VERY, VERY careful.

All financial products are aligned to profit optimisation only (for the lender).

A friend of mine lost his hotel due to an interest rate swap product that he was "sold" just before the recession kicked in.

He has zero chance of any recourse.

Side note: The "financial experts" I had entrusted my work pension to, managed to lose 34% of it in 2008.