Lifetime Mortgage

getmore4less

lozthomas wrote: »

My parents are considering ER/Lifetime mortgage. From what I'm reading its not a great solution for them or my siblings and I. Instead, can I buy a % of their home from them?

It might be the perfect solution for them if they may be wanting to raise money on their property so the kids don't get to spend it.

IF they need money and you have it why not just lend it to them?

Mortgage_Adviser

The lifetime mortgage is good if:


You can not get a mainstream mortgage because your income is too low


You can not get a mainstream mortgage because of a poor credit history


The lifetime mortgage is not good for you if:


You want to leave the property for you children etc to inherit.

robatwork

Mortgage_Adviser wrote: »

The lifetime mortgage is not good for you if:


You want to leave the property for you children etc to inherit.

OR if you really didn't or don't understand exactly how they work, blow your windfall on a new car you don't really need or want, then wonder who is going to pay for it later.

Blackbeard_of_Perranporth

lozthomas wrote: »

My parents are considering ER/Lifetime mortgage. From what I'm reading its not a great solution for them or my siblings and I. Instead, can I buy a % of their home from them?

I you could raise the mortgage and pay this without difficulty, this is the route to take. be sure to seek professional advice.

Onlooker

Following a ruling by he Financial Conduct Authority providers can offer Retirement Interest Only mortgage to home owners aged from 60 to 90 years of age.The providers must obtain evidence that the borrowers can repay the loans on a monthly basis with their income
Example if someone borrows £25,000 over 15 years the monthly payments would be just over £80.00 .Over the 15 years they will have paid back £15,000 add to that the £25,000 the total cost would be £40,000.
Borrowing £25000 with a Lifetime Mortgage the total cost will be £50.000 and rising unless the borrower opts out by paying the large Early Repayment Charge involved with these loans.
It would appear that there will be plenty of competion for buyers .The example offered is just one of many that can be made to suit any hoiuse holder in this age group.Consider.

poppy10_2

Onlooker why did you take out a lifetime mortgage to pay for a new car and a holiday, without reading the terms and conditions for what you were signing up for?

Onlooker

Consider the fact that this industry has now entered the realms of a so-called free raffle for tens of thousands of pounds .Free yes apart from the fact that to enter you must face up to one of their advisors who job is to ensure that they get the winnings back and much more from anyone who gets involved.Not thousands of pounds but a large proportion of your own paid for property..
There will maybe omny only one winner, apart from the industry itself ,but thousands of losers if they decided to enter this new fangled lottery with their own inheritance at stake.Consider

poppy10_2

Onlooker why did you take out a lifetime mortgage to pay for a new car and a holiday, without reading the terms and conditions for what you were signing up for?

Onlooker

Some time ago we mentioned the fact that a Finance Bill set along side the F.C.A w.as to be introduced in Parliament to protect people who faced significent challenges when it came to managing their monies etc.We also asked how badly had charities incomes been hit by people whose wealth had been lessened leaving them short of funds to gift to said charities due taking out Lifetime Mortgages.
We also asked where did the monies come from to promote a free large five figure sum to one lucky winner.by one of the providers agents,and why did they do it..
Now it has gone into reverse whereby the agent is paying commission to a particular well known charity to earn commission by advising people etc,.some who will be like the afore mentioned, to look at their Lifetime Mortgage product.Consider

poppy10_2

Onlooker why did you take out a lifetime mortgage to pay for a new car and a holiday, without reading the terms and conditions for what you were signing up for?