How is interest calculated on Equity Release?
How is interest calculated on Equity Release? Understanding how the interest is calculated on an Equity Release plan is crucial if you are going to seriously think about taking one out. By far, the most common type of Equity Release plan is a "Lifetime Mortgage", and the amount you will owe on an Equity Release Lifetime Mortgage plan is most commonly calculated by “rolling up” the interest. If you have ever used a savings account you will already be familiar with the principle of “rolling up” interest as it is the way interest is added to your balance to make your savings grow.…