Lifetime Mortgage

veesharp

Interested to know... did YOU “consider” at all??

John_G_Jones

veesharp wrote: »

Interested to know... did YOU “consider” at all??

To summarise what he’s posted before, no. He took out a lifetime mortgage to buy a shiny new car and, I think, have a nice holiday and simply did not bother reading or understanding the terms that he as signing.

Everyone tends to know families like that, I think, whomout getting what they want now ahead of any thought for the future, irrespective of the disparity in the cost and benefit.

I’ll admit, though, his is the most extreme example I’ve heard of, and you can sadly feel the bitterness about what he did to himself coming through his posts.

Onlooker, please do answer the question, was it a car that was worth what it’s cost you?

I’m mulling over buying something completely over the top before I’m too old enough to drive it without looking ridiculous, was this your thinking?

Onlooker

Compound Interest is the eighth wonder of the world.He who understands it earns it,he who doe,nt pays it Albert Einstein 1647.
The difference now is the industry calls it either rolled up or added on,it still means the same as it always had,Whatever you borrow at whatever interest rate your loan while double and later in life treble.
Apply for figures in advance for your your debt will be in 10,15,20 year time .These figures will be guaranteed and in any future will continue.Consider

AnotherJoe

Albert Einstein 1647 ??????????????

ACG

Onlooker wrote: »

Compound Interest is the eighth wonder of the world.He who understands it earns it,he who doe,nt pays it Albert Einstein 1647.
The difference now is the industry calls it either rolled up or added on,it still means the same as it always had,Whatever you borrow at whatever interest rate your loan while double and later in life treble (if you do not make any payments to the initial loan).
Apply for figures in advance for your your debt will be in 10,15,20 year time .These figures will be guaranteed and in any future will continue.Consider

They are automatically provided on your illustration prior to application and your mortgage offer post application.... As I have said a few times on this thread already but you seem to ignore.

dwsjarcmcd

I haven't read all the posts but I thought (maybe wrongly) that with Lifetime mortgage, the borrowers always needed to have independent legal advice, so the lender could be sure that the borrower (and their families) were aware of what the long-term implications were and to ensure they were comfortable with these.

Did the OP get legal advice before proceeding and if not, why not?

robatwork

Onlooker wrote: »

Compound Interest is the eighth wonder of the world.He who understands it earns it,he who doe,nt pays it Albert Einstein 1647.

I guess this was a different Einstein working in the middle ages, but if you took out a mortgage of £50,000 at a tiny interest of 1.4% in 1647, you'd owe £9,248,275.68 now.

Now that's worth considering.

AnotherJoe

robatwork wrote: »

I guess this was a different Einstein working in the middle ages, but if you took out a mortgage of £50,000 at a tiny interest of 1.4% in 1647, you'd owe £9,248,275.68 now.

Now that's worth considering.

Except, £50k in the mid 1600's was worth around (after a few quick googles) £5M in todays value, so actually not too bad considering.

Onlooker

Update using 2018 figures.Average borrowings £76,500.00.Using this figure at say 5% compounding interest rate in the 1st.10 years the added on interest would be £48110;00 In the next 10 years it would be a plus of £78366.82 The total debt would now be £126477.27 and continue to rise through the lifetime of said mortgage.Figures such a these will have been supplied by the providers in writing.In 2018 almost 40% of potential customers opted not to take up a Lifetime Mortgage but maybe decided on an other option on the market.Consider

kingstreet

Yes.

Interest roll-up is potentially bad. No-one is disputing that.

However you seem unable to grasp that for SOME PEOPLE it is a solution to a problem.