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The latter amount, the interest component of the current payment, is the interest rate r times the amount unpaid at the end of month N-1.
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They usually can continue living in the house; however, you must ensure that when you take out the mortgage it is written in joint names.
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Most providers have a minimum home value that they are prepared to allow people to remortgage to Equity Release, which tends to be £70,000.
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It's very important to discuss rates with a qualified financial advisor if you're considering taking out an equity release loan.
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