Lifetime Mortgage

Onlooker

Notice. The Single Finance Guidance Body (SFGB) opens for business tomorrow 1st.June.It will be known now as Money and Pensions Service(MAPS) and will work with the Financial Conduct Authority (FCA) to aid the public to manage their personal finances,debt advice plus money and pension guidance
As afore said many people face significant challenges when it comes to managing money.Consider

Kentish_Dave

Onlooker wrote: »

Notice. The Single Finance Guidance Body (SFGB) opens for business tomorrow 1st.June.It will be known now as Money and Pensions Service(MAPS) and will work with the Financial Conduct Authority (FCA) to aid the public to manage their personal finances,debt advice plus money and pension guidance
As afore said many people face significant challenges when it comes to managing money.Consider

It’s not many people, it’s only the rare family like yours who will borrow on their mortgage for a car and not even bother to read the paperwork.

It was a chavved up Corsa, wasn’t it, and a week in Marbella?

Hilsbart

Hi, just joined this forum and not sure if I’m going around it the correct way! I’m about to sign up via broker with more2life at 3.39% and approx £2500 set up fees. I can pay back interest of 10% of capital including interest yearly. The fact is I’m 66 this year and just had two ops and treatment for breast cancer. I don’t want to move but have no money to do stuff while I can. It seems a fair deal to me but of course, lots of people are horrified!

Any response? Hope I can find if anyone replies as not sure how it works

HilsQUOTE=ACG;72741584]I really do not mean this to come across badly, but I can not think of any other way to ask... Did you think someone was going to give you £45k for an unknown number of years and the debt would not increase?

I do not do equity release mortgages, primarily because I always thought they were a bit dodgy (for want of a better phrase), however my understanding is the industry has become a lot more regulated over the last 5 years and is not dodgy now.

Could you remortgage to a new lifetime mrotgage? Maybe at a better rate or with a provider who will allow you to make overpayments/pay the interest or put in a guarantee that will allow you to keep some of the equity to pass on to your family?[/QUOTE]

Hilsbart

Hi, just joined this forum and not sure if I’m going around it the correct way! I’m about to sign up via broker with more2life at 3.39% and approx £2500 set up fees. I can pay back interest of 10% of capital including interest yearly. The fact is I’m 66 this year and just had two ops and treatment for breast cancer. I don’t want to move but have no money to do stuff while I can. It seems a fair deal to me but of course, lots of people are horrified!

Any response? Hope I can find if anyone replies as not sure how it works
Hils

poppy10_2

Hilsbart wrote: »

Hi, just joined this forum and not sure if I’m going around it the correct way! I’m about to sign up via broker with more2life at 3.39% and approx £2500 set up fees. I can pay back interest of 10% of capital including interest yearly. The fact is I’m 66 this year and just had two ops and treatment for breast cancer. I don’t want to move but have no money to do stuff while I can. It seems a fair deal to me but of course, lots of people are horrified!

Any response? Hope I can find if anyone replies as not sure how it works
Hils

Do you have any family or dependents that might be hoping/expecting to inherit from you?

Harryo

Hi Hills.

Sorry to hear you have had which must have been a very tough time recently. Wishing you a speedy recovery and ongoing good health.

I am about your age and have just signed all paperwork and am waiting for the money. I have been looking at Lifetime Mortgages for over six months and studied them quite extensively. My conclusion having looked at all options of sorting out my situations was that a Lifetime Mortgage was the only suitable and sensible option for me.

Your interest rate is a bit lower than mine but your fees are higher. Overall though I would consider those two figures are a good deal and I don't think you could have done much, if any, better.

If you manage to pay back 10% a year then you will pay the whole amount back in about 15 years, if the provider allows that without penalty. That way really there is absolutely no disadvantage compared to an ordinary mortgage. That is also what I plan to do. The absolute great plus for me is that if I for any reason cannot or do not want to pay the 10% you I not have to and nobody will take my home away, unlike an ordinary mortgage. The only downside is compound interest which does escalate the loan amount if annual payments are not made. You presumably have the table which indicates exactly what happens if no repayments are made. From that you have the facts and you can decide if it is the right way forward for you. Another plus for me is that the interest rate is fixed for life and therefore there will be no unexpected increases.

I love my kids to bits (and also the grand children) but I take the view that my needs are greater than theirs as far as sorting out a reasonable life for myself. If there is money left over for them when I depart (which there should be) then fine. But if not then that is just the way it is for them. I know anyway that they will not be bitter if they don’t get much. If they are then I would be ashamed of them and also myself for failing to teach them values in life!!!!
Go for it if you think it is right for you.

Hilsbart

Hi Harry

Thanks for that. I’m getting so many conflicting views but think I’ve looked deeply enough into it. I’m not having a huge amount, hence the lower rate. The drawdown will probably be a higher rate if I use it. There will be plenty left when I peg it and I can move the plan with me as long as they approve what I’m buying. Im just going to have another look at these retirement interest only mortgages before I sign on the dotted line! Also, bought a lottery ticket today - that would solve all my problems!

Many thanks

Hils

Hilsbart

No, only me and the dog!

Hils

Onlooker

The no negative equity guarantee states you will never have to repay more than your house is worth,thats 100%.Should all with a Lifetime Mortgage be concerned when as the compounding interest on their borrowings has gone up by at least 4 figures in the last twelve months when at the same time the average increase in property prices in that period has been reported as £628.00.
A yearly rise of at least 2% will be required for the duration off the next ten years to impact on the interest charged on many loans .Will it increase the risk of this guarantee be needed,hopefully not.Consider

Onlooker

Switched home insurance,saved money,no charge.Changed fuel providers,saved money,no charge.Changed insurance on our car,saved money,no charge.
Is it then only the Equity Release providers that charge anyone who wants to break away from their costs?.An early repayment charge is made almost from day one and can be as much as 25% of any loan.Alternative ways to use your property as collateral are available without any such charge.Consider