Lifetime Mortgage

Onlooker

We recently pointed to our worries with regard to losses to revenue to charities who relied on gifting from peoples last wills to themselves and asked what the effect on the reduction in value to their properties by being involved in Litetime Mortgageshd on their gifting..We also found that a leading charity was accepting commission from a provider to entice people to get involved in this multi billion pound business .The same charity is now angry at the BBC for robbing maybe the same people of a free TV licence.Maybe they should look to paying for them out of their commission.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

Everybody borrows monies at some time.Be it for holidays ,cars etc.Many save and get and pay for a mortgage to buy their own home.In all of these and many more cases they will know how much it will cost an when they will finally own what they worked towards.
Entering into the field of lifetime mortgages is different.You can borrow monies against your properties but the end date cannot be defined.The interest on your borrowings will increase year on year ,but for how many years and too what amount?Estimates can be worked out based on the amount borrowed but the time factor will not be know.Look to alternatives where you will know .exactly where you stand when you have paid the debt.Consider

Harryo

But for the majority if not all Lifetime Mortgages you can pay back the debt without penalty over a known number of years. Mine is a maximum of 10% annually which means I can pay it back within about 15 years, if I can afford it and if I want to. So if paying the money back is my goal (which it is) then it is no different to taking out an ordanary mortgage or loan for 15 years in that respect. The big advantage for me is that I will have no wories if I cannot or decide not to pay it back. Nobody will be able to throw me out of my house, unless I get into debt for some other reason.

Onlooker

10 years now since getting involved in this market our debt has risen to over £76000. This last year another £4000 has been added on and will grow yearly.All of this figures will continue to rise during our lifetime'.In 5 years from now the total owed will be over £100000.This is our future and the way we feel we advise anyone to get an alternative way to raising money,They are out there,but cannot have an end date attached so you will not be in the position of not knowing how much inheritance you will have to leave Get the estimates,look at them .Consider

Onlooker

House price inflation is the only protection against losing more of your property value with a Lifetime Mortgage.A £60000 loan will,with compounding interest of 5%, double in about 15years.
House price inflation would have to be over 2.25% year on year for that period to stay with your original house value when you took the loan.
House price inflation is static at under !% at the moment without any guarantee for how long
Consider

poppy10_2

Onlooker wrote: »

House price inflation is the only protection against losing more of your property value with a Lifetime Mortgage.A £60000 loan will,with compounding interest of 5%, double in about 15years.
Consider

Why didn't you consider this before you took out the loan and spunked the cash on a holiday and a new car?

Onlooker

We see that the SFGB formed to protect people who face challenges when it comes to their financial matters has started working.It name has been altered to the Money and Pension Service.MAPS.Set up to give free financial advice and guidance.It is a combination of The Money Advice Service,The Pension Advisory Service and Pension Wise.For some reason it has left the Financial Conduct Authority separate when it was to included at the start..Before committing to a Lifetime Mortgage obtain as much advice as you can ,get written examples of your financial standing for 5,10 up to 20 tears at least.
Consider

Onlooker

No direct replies to our posts including the 25% charge for switching to a cheaper deal elsewhere..
Charities receiving commission for linking their clients to the Lifetime Mortgage industry.
The Money and Pension Service where you can receive outside independent advice.
The latest figures on annual house price inflation show they are below 1% at the moment when the future cost of any Lifetime Mortgage will depreciate the value of any holding in any property used as equity unless said inflation is over 2%per annum for the whole of said Mortgage.
Advice from MSE is borrow as little as you need as late in life as you can.Consider

Kentish_Dave

So, what was the car, champ, and do you honestly believe there is even one other family in the U.K. who have ever done what you did?

I’m glad that you are getting this out of your system, but you’d do far better if you put your energy into upping your earnings to pay your debts off.

Consider.