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If it increases over many years, the initial lump sum might start to look like expensive borrowing considering the profit that the lender is making.
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Depending on the type of equity release you choose, the money can be released in a single sum, or in smaller amounts as and when you need it.
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There are a number of factors that will affect your final mortgage balance on the day the equity release loan is repaid.
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An interest-only mortgage requires payments just of the interest — the cost of borrowing money — during the first years of the loan.
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