Lifetime Mortgage

Onlooker

The latest full page advert. describes understanding the complications and consequences of raising movies with a Lifetime Mortgage as way as ABC.This won't be the case for many people lacking financial understanding. XYZ good be a better guide. X Xtra interest added on annually B Beware of mounting loss of equity in your own home. C Can reach a position of having nothing left..If this is not possible why the do the providers guarantee that you will not owe more beyond this point.Consider

Onlooker

Questions Does a butcher eat meat?Does a baker eat bread?Does a candlestick maker ever see the light?
Does a Lifetime Mortgage rep.sign up for his own product?
We have asked this question before without receiving a reply.
Another query is where does the £3million + come from when a provider gives it annually to

a leading equity release advertiser or rewards another with a £250.00 reward for each new

enquiry they receive.Consider'

ACG

1) Questions Does a butcher eat meat? - Probably
2) Does a baker eat bread? - Probably
3) Does a candlestick maker ever see the light? - What has a candlestick maker and religion got to do with one another?
4) Does a Lifetime Mortgage rep.sign up for his own product? - Most reps will be too young to take out their own products.

We have asked this question before without receiving a reply. - I dont recall seeing the question previously otherwise I would have answered.

5) Another query is where does the £3million + come from - Pension funds usually.

It is not uncommon for finance providers to pay people who introduce business to them. The alternative is they spend more money on advertising or hire a sales team/bigger sales team.

Hopefully I have cleared up some of your questions. 4 of the 5 questions are completely unrelated to the thread and I would expect from a 3 year old, but I am always happy to help.

kingstreet

As I've said before, interest roll-up isn't the only option. There are interest-only mortgage products for the retired and I wish Onlooker would actually acknowledge this, instead of the regular bump to his anti-roll up thread.

FWIW I don't sell interest roll-up products Onlooker, before you accuse me of bias.

Onlooker

We wonder how far the Lifetime Mortgage providers are going to go to entice people into being trapped in a future of increasing debt.Anyone who gets misled that their future will be full of singing and dancing
as per the latest advert without taking full notice of the financial consequences will be mistaken.
It is not a decision to be taken in such a sort of light hearted manner.Consider.

Onlooker

The latest Lifetime Mortgage advert.states that you can have more income in retirement.The money released is your own and the cost of doing so will lead to a much less asset in your property in your future.
A typical house price at the moment is £250,000.You may borrow say£50,000 from your equity at a compounding interest rate of about 5%

In about 20 years from now your debt will have increased to £132,664.89.
To keep your £250,000 property wealth after payment of this debt house inflation would have to be over 2.2% per annum over this same period which cannot or will not be guaranteed.Get your own comparison from your anticipated or other advisor.Consider

Onlooker

One of the tabloid newspapers the other day contained 4 advertisments from 4 different providers.Why?
Do they know more than the man in the street?The financial implications of the future are of a unknown quality at the moment and people should but aside thoughts of getting involved with long term arrangments such as Equity Release and Lifetime Mortgages until we are all aware of the final outcome.If there is deflation in the housing market then the biggest losers will be those who are already in debt though taking out equity.
A 9 to 12 month wait will give a proper picture of the future and in most cases will cost nothing but could save you loss of inheritance in that future.Consider.

Onlooker

With regard to the latest multitude of adverts.trying to attract attention towards Equity Release /Lifetime Mortgages but still re-iterate that you that you will covered by the guarantee that you will never owe more that the value of your home plus accrued interest.Taking a £250,000 property wtth say a future inflation rate in property of 2% and a £50,000 lifetime mortgage @ say 5% the said guarantee would not be relevant for about 35 years.
Should properties not achieve that growth and the lifetime mortgage,which will accumulate anyhow, then the two figures are guaranteed to meet a lot sooner.Consider

missile

Onlooker wrote: »

ramble ……....Consider

I "consider" reading your posts to be a waste of my time. You made a mistake, you did not "consider" the consequences of your own !!!!less borrowing, get over it.

Onlooker

In todays paper yet another new provider jumps on the Lifetime Mortgage wagon.Why?ls there lots of profits to be made .Enough to filter over £3million per annum to a third party with attractive name enough to induce people without enough financil skills to understand the full affect it will have on their future.
We doubt that we are the only ones to feel a great deal of anquish about our decision of falling into the trap that is a lifetime of rising debt and knowing it will not end until.,who knows when.

Another question ,has any of the repliers jumping on our posts have actually sold their product to their own parents or kin.Consider