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  • FIRST POST
    • AllenA
    • By AllenA 6th Dec 17, 2:19 PM
    • 9Posts
    • 0Thanks
    AllenA
    Lifetime mortgage
    • #1
    • 6th Dec 17, 2:19 PM
    Lifetime mortgage 6th Dec 17 at 2:19 PM
    I am 68 years old, I have a £70K interest only mortgage due in about 16 months time, the property being approximately valued at around £120K at present
    Having investigated the rules etc, I cannot get any form of equity release for one reason or another and there does not seem to be any other options open to me than to be forced to sell when the mortgage is due.

    I would like to stay here, keep this place but as with a great deal of others in a similar situation there does not seem to be any form of legislation or way this can happen.
    I have heard of what are termed lifetime mortgages but it seems that although they are supposed to be different from equity release, the advisors etc are apparently blurring the lines between this and equity release and applying the same rules and conditions as they do to equity release, the result being that I cannot get a resolution whereby I can keep my home.

    Does anyone know of a way I can resolve this so I can stay here ?
Page 1
    • marliepanda
    • By marliepanda 6th Dec 17, 2:30 PM
    • 4,860 Posts
    • 9,790 Thanks
    marliepanda
    • #2
    • 6th Dec 17, 2:30 PM
    • #2
    • 6th Dec 17, 2:30 PM
    I am 68 years old, I have a £70K interest only mortgage due in about 16 months time, the property being approximately valued at around £120K at present
    Having investigated the rules etc, I cannot get any form of equity release for one reason or another and there does not seem to be any other options open to me than to be forced to sell when the mortgage is due.

    I would like to stay here, keep this place but as with a great deal of others in a similar situation there does not seem to be any form of legislation or way this can happen.
    I have heard of what are termed lifetime mortgages but it seems that although they are supposed to be different from equity release, the advisors etc are apparently blurring the lines between this and equity release and applying the same rules and conditions as they do to equity release, the result being that I cannot get a resolution whereby I can keep my home.

    Does anyone know of a way I can resolve this so I can stay here ?
    Originally posted by AllenA
    What was your original plan to pay off the mortgage? Usually with interest only mortgages you put a vehicle in place to pay off the capital once it runs out.

    Without a vehicle to pay it off youve basically rented a house from the bank cheaply for a long time.
    Survey Earnings 2017 - £163
    • dunstonh
    • By dunstonh 6th Dec 17, 2:49 PM
    • 89,853 Posts
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    dunstonh
    • #3
    • 6th Dec 17, 2:49 PM
    • #3
    • 6th Dec 17, 2:49 PM
    Having investigated the rules etc, I cannot get any form of equity release for one reason or another
    What reason?

    I have heard of what are termed lifetime mortgages but it seems that although they are supposed to be different from equity release, the advisors etc are apparently blurring the lines between this and equity release and applying the same rules and conditions as they do to equity release, the result being that I cannot get a resolution whereby I can keep my home.
    The term equity release covers all methods of equity release, including lifetime mortgages. A lifetime mortgage is a type of equity release. Advisers are not blurring lines.

    Does anyone know of a way I can resolve this so I can stay here ?
    Speak to a local IFA who does equity release.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • AllenA
    • By AllenA 6th Dec 17, 3:01 PM
    • 9 Posts
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    AllenA
    • #4
    • 6th Dec 17, 3:01 PM
    • #4
    • 6th Dec 17, 3:01 PM
    I am aware of that .. the situation being that having moved here in 1988 my then wife decided in 1989 that she 'didn't want to be married anymore' .. her exact words ..

    I was left to bring up the children and re-mortgaged a couple of years later at the divorce to pay her off, the interest only option being best at the time due to other financial constraints. Since that time due to bringing up the kids on my own, ill health and other things I have not been in a position to do much, not looking for a quick simple answer, just a way to stay here.
    • AllenA
    • By AllenA 6th Dec 17, 3:05 PM
    • 9 Posts
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    AllenA
    • #5
    • 6th Dec 17, 3:05 PM
    • #5
    • 6th Dec 17, 3:05 PM
    They tell me I do not have enough equity, for one thing, income for another, it seems that even if I had double equity I still couldn't do it, I was told by one advisor that it was down to the Govt money men who set the rules and regulations re equity release ??

    In speaking to advisors, or at least the ones I have spoken to, the answers seem to be the same for a lifetime mortgage as they do for equity release ... ??

    As you can tell from both of my comments above I have spoken to financial advisors .. !!
    • TrickyDicky101
    • By TrickyDicky101 6th Dec 17, 3:06 PM
    • 2,824 Posts
    • 1,828 Thanks
    TrickyDicky101
    • #6
    • 6th Dec 17, 3:06 PM
    • #6
    • 6th Dec 17, 3:06 PM
    How old are your kids? Can they help you (financially)?

    A likely problem you will face is your age is too young and the loan-to-value too high for equity release to be a possible solution.
    • kingstreet
    • By kingstreet 6th Dec 17, 3:10 PM
    • 32,360 Posts
    • 17,371 Thanks
    kingstreet
    • #7
    • 6th Dec 17, 3:10 PM
    • #7
    • 6th Dec 17, 3:10 PM
    Look here;-

    http://www.equityreleasecouncil.com/consumer-information/what-is-equity-release/equity-release-plans/

    then contact an IFA or Mortgage Broker with extended permissions to advise on Lifetime Mortgages.

    There are products where the interest is paid, rather than allowed to roll-up; pretty much the interest-only mortgage you have now.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • AllenA
    • By AllenA 6th Dec 17, 3:11 PM
    • 9 Posts
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    AllenA
    • #8
    • 6th Dec 17, 3:11 PM
    • #8
    • 6th Dec 17, 3:11 PM
    As a layman, a normal sensible person with a good credit rating ... what I would like essentially is say an £85k loan on a lifetime mortgage, I could afford to pay approx £300 a month for however long it takes, and then when the time came for the need to sell, my estate would pay back the principle plus say 15% of the equity, the £300 a month being a bonus to it all ... but of course I'm dreaming aren't I ... it is never that simple is it ... ??
    • dunstonh
    • By dunstonh 6th Dec 17, 3:13 PM
    • 89,853 Posts
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    dunstonh
    • #9
    • 6th Dec 17, 3:13 PM
    • #9
    • 6th Dec 17, 3:13 PM
    In speaking to advisors, or at least the ones I have spoken to, the answers seem to be the same for a lifetime mortgage as they do for equity release ... ??
    As said above, equity release covers all types. Lifetime mortgages are a type of equity release.

    In theory, a normal mortgage could be considered a form of equity release in discussion terms. I think it is better for you to avoid looking for certain words and focus on the objective instead and let the IFA or mortgage broker handle the words.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • AllenA
    • By AllenA 6th Dec 17, 3:16 PM
    • 9 Posts
    • 0 Thanks
    AllenA
    Kingstreet .. thank you for that .. I have though been there, read all those things etc, however it is when I go to try and get them implemented that I get the negative replies ... I am either talking to the wrong people or perhaps the people am talking to are working to their own agendas as I cannot get to a positive solution...??
    • TrickyDicky101
    • By TrickyDicky101 6th Dec 17, 3:21 PM
    • 2,824 Posts
    • 1,828 Thanks
    TrickyDicky101
    It may also be given the amount of borrowing desired and the value of your property (and current income) you won't have an option that facilitates full repayment of your current mortgage as the risks don't stack up for a potential lender.

    Could your children help?
    • AllenA
    • By AllenA 6th Dec 17, 3:35 PM
    • 9 Posts
    • 0 Thanks
    AllenA
    Regretfully no, My children (37 and 35 now) are not in a position to help, I am sure they would if in a position to do so, they have their own lives to live.
    • djphig
    • By djphig 6th Dec 17, 8:32 PM
    • 12 Posts
    • 1 Thanks
    djphig
    Hi AllenA,

    Have you considered a normal mortgage? There are specialist lenders who will consider applications up to 85 years old with more flexibility with income than the normal high street lenders
    • AllenA
    • By AllenA 8th Dec 17, 2:27 PM
    • 9 Posts
    • 0 Thanks
    AllenA
    Interestingly I have done all the things that are open to me... gone to financial advisors, online and on the high street, contacted various agencies and outlets that offer help and advice, even my bank .... nothing ... they all say there is nothing they can do ... so .. as I say either it is all hype, or the relevant advisors, companies etc etc are working to their own agendas, manipulating the rules/guidelines to suit themselves or picking and choosing those whose income and property will benefit them the most.
    Disillusioned is an understatement ... distrust of them all is a fact ... !!
    • dunstonh
    • By dunstonh 8th Dec 17, 2:41 PM
    • 89,853 Posts
    • 56,511 Thanks
    dunstonh
    gone to financial advisors, online and on the high street, contacted various agencies and outlets that offer help and advice, even my bank .... nothing .
    Most of those places do not do what you need. You need either a whole of market mortgage adviser that does equity release of an independent financial adviser that does equity release.

    so .. as I say either it is all hype, or the relevant advisors, companies etc etc are working to their own agendas, manipulating the rules/guidelines to suit themselves or picking and choosing those whose income and property will benefit them the most.
    If you showed that sort of attitude with them, then they would probably look for ways to not deal with you.

    distrust of them all is a fact ..
    If I went to a butcher and asked for a loaf of bread he would say he cant help me. I could repeat and repeast as much as I like but there is nothing he can do. So, do I now distrust the butcher and rant on the internet or do I go to the right place I should have gone to?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • AllenA
    • By AllenA 8th Dec 17, 9:55 PM
    • 9 Posts
    • 0 Thanks
    AllenA
    According to all the hype ... what I see hear and read ... finacial advisors are supposed to know all this too .. arent they .. ??

    I didn't start to have the attitude until I realised I was being given the run around by the people I am told should be able to help me... truth hurts as they say .. let me guess, you are in the industry ?

    ps: I wouldn't go to a butcher for a loaf of bread .. If I went to him for meat and he kept saying he didn't have any .. well that's enough for anyone to have attitude .. isnt it .. ??

    I would have to wonder at the advice from someone who would go to a butcher for bread .. !!
    • AnotherJoe
    • By AnotherJoe 8th Dec 17, 10:09 PM
    • 7,670 Posts
    • 8,279 Thanks
    AnotherJoe
    It may be that at your age, income combined with the equity in the property there is no equity release financially possibilite. That’s always going to be the case for some values of all those things. That doesn’t mean there is a conspiracy against you.
    • dunstonh
    • By dunstonh 8th Dec 17, 10:27 PM
    • 89,853 Posts
    • 56,511 Thanks
    dunstonh
    According to all the hype ... what I see hear and read ... finacial advisors are supposed to know all this too .. arent they .. ??
    An FA would not know all this. FAs are restricted advisers. The most common type of FA can only advise on the products and services of their employer or tied insurance company. Most of whom do not offer equity release. So, they neither retail meat, bread or equity release.

    You need to see an IFA. Spot the I. It stands for independent. However, it has to be an IFA that also deals in equity release. Most firms with multiple advisers will have someone in-house who can do equity release. Typically a mortgage broker rather than one of the actual IFAs. OR you can go to a mortgage broker that does equity release. You wont get meat or bread though.

    ps: I wouldn't go to a butcher for a loaf of bread .. If I went to him for meat and he kept saying he didn't have any .. well that's enough for anyone to have attitude .. isnt it .. ??

    I would have to wonder at the advice from someone who would go to a butcher for bread .. !!
    So, why dont you go to the right place for equity release then?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • AllenA
    • By AllenA 9th Dec 17, 12:13 AM
    • 9 Posts
    • 0 Thanks
    AllenA
    Well you see ... I thought I was ...... according to what I had been told, I was ....
    About the one (and only) thing I have gained from this forum is the 'I' ... for Independent ... and I will (try to anyway) act on that ... watch this space ... !!
    • dimbo61
    • By dimbo61 10th Dec 17, 1:14 AM
    • 9,585 Posts
    • 5,181 Thanks
    dimbo61
    Time to start looking for a new home !
    My Dad at the age of 70 could no longer afford to maintain his house so he sold it and moved into an over 55,s one bedroom apartment.
    He has loved living in this complex for the last 13 years.
    He has rent to pay each month but the money from the sale of his home has provided him with a good income and lots of nice holidays ��
    He is chairman of the residents community and spends many hours working in the communal gardens.
    If you have the income then overpay the Mortgage each month and consider doing any jobs which will make the house more sellable.
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