Hi Shakin Steve,
Thanks very much for your post. Prudence is always good and it's definitely sensible not to overstretch yourselves financially over something as important as a house but I did the same 30 years ago and never regretted it.
Yes, it is the length of the term that causes me the most concern. The percentage value method would definitely be more sensible of the two. Though a standard loan would be even better. But even then, given how much value we've already put on the property with the work already done even a percentage basis will see the lender handsomely compensated for the equity release loan. But you can't have your cake and eat it, of course. If you want the money you're gonna have to pay the price. Maybe it will be another cold winter after all.
Thanks very much for your input. Really appreciate it.
Don't you just want a small mortgage, with a payment holiday for a year or two? You're a bit young for equity release, besides which you'll want to repay the loan when your business takes off.