Anything like the Halifax Retirement Home plan?

yelf

Halifax have this where older people can take out mortgages up to 95% of value, with a term going beyond age 100. Its a form of equity release which needs the monthly payments servicing.

Does anyone know of any simialr products?

Comyface

Sorry, I don't know the answer to your question but, just to say, the maximum LTV for the Halifax scheme is 75%.

yelf

Comyface wrote: »

Sorry, I don't know the answer to your question but, just to say, the maximum LTV for the Halifax scheme is 75%.

No, its 95% - there are a number of offfers with varing LTVs and rates.

thanks

EdInvestor

In what way is this an Equity Release plan?

yelf

EdInvestor wrote: »

In what way is this an Equity Release plan?

if you,own your property out right you can take out a mortgage on it to release upto 95% of its value. But the payments have to be serviced and there is no negative equity clause.

opinions4u

Fairly sure Halifax pulled the Retirement Homeplan mortgage for new customers a few years ago.

Age 55 minimum.

LTV was capped at 75%.

Comyface

opinions4u wrote: »

Fairly sure Halifax pulled the Retirement Homeplan mortgage for new customers a few years ago.

Age 55 minimum.

LTV was capped at 75%.

Yes, they stopped offering it to new customers through branches a while ago. Although they let brokers specialising in equity release still offer it after that, not sure if they still can though.

Defo 75% max LTV anyhoo.

EdInvestor

yelf wrote: »

if you,own your property out right you can take out a mortgage on it to release upto 95% of its value. But the payments have to be serviced and there is no negative equity clause.

In that case it's hardly an ER product. Modern equity release mortgages specify no negative equity and the loan/interest does not have to be repaid until death or entry into residential care.

yelf

To confirm (and this is 100% accurate as of today) you can still get the Home retirement Plan uoto 95% LTV - and you have to have a relevant Equity Release qualification to advise on it because the FSA deem it to be a form of litetime mortgage.

although it does appear to be for existing customers only

yelf

Broker - retirement home plan - 3 year fixed reverting to term tracker - annual interest

Product code: FRH221
Description: 3 year Fixed LTV amount: 90 - 95% Features and benefits

Product rate: 5.59% (APR 4.2%) fixed until 31/07/2012

2.49% (APR 4.20%) tracker until term
(BOE Rate currently 0.50%)

Latest completion by: 31/12/2009 Loan band: £0 - £7.5m Commitments

Product fee: £999 Early repayment charge: 3% to 31/07/2010

2% to 31/07/2012

Additional info

AvailabilityAvailable to Halifax mortgage customers where their mortgage deal is coming to an end, also available for additional lending where applicable.

Please note the loan availability is based on the total mortgage debt.

There is an additional £99 further advance fee. This can be added to the loan or paid up front. Risks

Your client's home may be repossessed if they do not keep up repayments on their loan. Whilst a fixed rate mortgage can give your client certainty around monthly payments, the Bank of England base rate may go down as well as up. The value of your client's home may alter with market conditions so that the amount of the loan may exceed the value of the home.

yelf

Also, non exisiting Halifax customers can take out a FTB or HMV product on a Retirement Home Plan basis