80,000 couples took out ‘equity release loans’ more than one decade ago
But compound interest charges mean their debt has more than doubled
They are also hit with early-redemption charges if they have to sell house
Experts calling for Financial Ombudsman Service to launch probe after hundreds of complaints.
Thousands of pensioners who took cash out of their home for a more comfortable retirement face crippling charges and early-repayment fines if they have to sell their home, it has emerged.
More than 80,000 couples who took out so-called equity release loans more than a decade ago have found that compound interest charges mean their debt has more than doubled.
In addition, if they have to sell the house because one spouse dies, or has to go into residential care – or if they simply want to downsize – they are hit with early-redemption charges of up to 25 per cent of the original loan.
Read more: http://www.dailymail.co.uk/news/article-3193011/Thousands-OAPs-trapped-crippling-equity-debts-Pensioners-facing-crippling-charges-early-repayment-fine-sell-home.html#ixzz3iXFVYvgX
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