Interest on equity release when owner dies

L

legal33

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When someone dies who had availed of equity release on their house, does the interest stop compounding when the person dies or does the debt keep growing until the house has been sold and the bank repaid?

Thanks
 
You would have to check the terms and conditions of the product they signed up for. I can't imagine why the interest would stop but it will all depend on the terms of the loan.
 
What do you mean by "equity release"?

If it's a life loan with Bank of Ireland, yes the interest continues to accumulate.

Brendan
 
Hi,

By 'equity release' I mean the property owners were able to secure about €100k from the bank about 20 years ago on the agreement that when the owners died, the bank would be repaid through the sale of the property. The debt owed at date of death was about €300k due to compounded interest. Just wondering if the debt will keep growing towards €400k if the house is not sold for a few years.

Thanks
 
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