Lifetime Mortgage

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  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    TrickyDicky101 wrote: »
    I hadn't heard of the 'rule of 72' before - that's a nice simple yardstick :D

    it has limitation but for the normal rates(<10%) we deal with it is good broad brush approach.

    72 is handy as it has loads of factors(1,2,3,4,6,8,9,12).

    70/69 gives closer results rates below 6%

    (The need for these old rough rules and mental arithmetic have been lost with the advent of calculators and dumbing down in education)
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Onlooker wrote: »
    To switch will in our case cost 25% of the loan,i.e.11,250pounds and at whatever reduced rate would take 6/7 years to recoup.Not very viable.

    Why not? Presumably you plan on being in this house "forever" so unless you are in your eighties it would seem a worthwhile thing to do.
  • Onlooker
    Onlooker Posts: 145 Forumite
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    Thank you for your replies.Unfortunately they only add to my premise that someone trying to decide which option to take when considering Equity Release will be even more confused by your answers.
    The reasons behind our threads was to give just a simply guide to assist in making one of the biggest decisions in their lifetime.Again we say whatever amount they decide to release to get a forward quotation based on say 10/15 or even 25 years .As someone showed it can be provided in minutesDecide then before signing,it is yours and even your families future
  • Onlooker
    Onlooker Posts: 145 Forumite
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    Yet another full page advert re.Lifetime Mortgages.It states you will own your home.Yes less the legal charge against the amount released.No monthly payments.Yes but roll-up interest rates which will increase the amount owed during you lifetime,This could double or triple your debt .No negative equity guarantee.This does not mean that you will not finish up losing 30/40% of the value of your homeTake note of the risks.Despite everything you may be someone who wants to take your families inheritance into account.
  • comeandgo
    comeandgo Posts: 5,744 Forumite
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    If you were my parents I would rather you spend your money on whatever you want and don't worry about inheritance, nobody has a right to their parents money.
  • Onlooker
    Onlooker Posts: 145 Forumite
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    Lifetime Mortgage front page advert.Headline Retain 100% home ownership:
    Small print.You only continue to own your own homewith a lifetime mortgage
    which is secured against your property i.e.a Legal Charge.is placed on your home .
    From that date you will have to obviouly pay this charge off before the residue
    is yours or your estate which again obviously will not be 100% of your home but minus the
    borrowings plus compound interest charged over your lifetime.
    Therefore get that impact state ment on offer,consider options before sugning.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    You better start looking for TM's Magic Money Tree then, as that's what you appear to want.
  • Downsizer
    Downsizer Posts: 16 Forumite
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    Take notice of statement in a national newspaper today
    "Those with longer memeries will know that equity release is
    principally ot benefit to the lenders,who will eventually extract
    extremely punitive returns from the homeowners estate.
  • robatwork
    robatwork Posts: 7,094 Forumite
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    52474-einstein-quote-on-compound-interest.jpg


    (note he may well not have said it, but it's very true nevertheless)
  • Downsizer
    Downsizer Posts: 16 Forumite
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    BEWARE OF FALSE PROPHETS

    Matthew 7:15 KJV
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