According to a report from the consumer lobby group Which?, equity release loans, also called lifetime mortgages, are risky and expensive. Such loans help elderly people raise capital against their house. After the death of the borrower, his house is repossessed by the lender.

The equity release loans are very risky because if the amount of the loan becomes much bigger than the value of the house, the house may be repossessed by the lender. The amount of a loandepends upon the age of the borrower. The older the borrower, the larger is the amount he can take out.

Equity release loans are the most beneficial to those who are in their 60s or 70s. If you live for a short period of time after taking out an equity release loan, you would receive less benefit. After your death, your property will be sold off and your family will not inherit the property.