Lifetime Mortgage

ACG

How I have missed these posts.

I love how you manage to turn something that is a positive in to a negative.

So they are giving a warning and you still make it sound like they are hiding something.

Whilst a 1% rise may not seem feasible over the next year or 2, over the next 10 years it will probably rise on average by more than 1% p.a.

Keep up the good fight. Maybe find a hobby that will stop reminding you, you as an adult made a decision freely that you now regret - Golf is a good one.

Onlooker wrote: »

Full page advert again printing comments which are not as informative as they should be i.e you will always own your own home ,yes naturally but with a legal charge against it.Then thet go on to admit that the total borrowed could with compounding interest applied annually you could reach the full value of your said property and have no residue left to pass on.
The only criteria with a mortgage for a lifetime is that they will be some price inflation on your property.This cannot be guaranteed at any point.A 3%+rise annually for the whole period will maybe leave you with the monies you started with.At the moment a 1% annual rise does not seen to be in the pipeline.Consider

mjm3346

Forget about the interest rising every year until all the equity is gone just get out into the street and dance along to "good advice is Key"

Onlooker

It will reduce the value of your estate(could be zero),or the inheritance you have to leave to your dependents (could be zero).These are the last lines to come from the full page ads .from the providers of Lifetime Mortgages despite being probably the most relevant.
Ask for quotes for how much will my loan be 10/15/20 years from now rather than how much can we borrow.The 17 pages you have logged into will give readers an insight into a mortgage for your lifetime from all points of view.Consider

Onlooker

No discussion with regard to taking of lack of sufficient annual house price inflation the unknown factor but most important factor to be aware of when borrowing for you and yours lifetime.
Posts with regard to CEO s salaries ,providers paying commissions to charities.no discussion,losing a partner and having to cope with the financial consequences alone,no discussion.
There are other ways to borrow cheaper and with a much greater chance to keep your property yours and your families,Consider

Onlooker

It is not !st.October yet house price inflation or lack of same is already the subject of discussion in the dailies Should readers be concerned when they indicate that the annual inflation for the year could be less than 1%..
An annual inflation figure of at least 3% for every year of a Lifetime Mortgage is needed just to pay off the debt plus accrued compounding interest and leave your property holding just the value you borrowed against at the start.
Lesser averages will reduce as aforesaid the value of your estate.Ask for estimates for about the same number of years it took to pay off your home as an example.Consider

Onlooker

No discussions with regard to switching and the Early Repayment Charges against your loan which could as in our case is 25% of original borrowing just to reduce the compounding interest rate by joining another lender.Also no volunteers who work in the industry admitting to buying their own product.The fact that 37% of enquiries made said no and borrowed in other ways
House price inflation and the effect it can on your families future inheritance.Look back at threads made to these pages.Consider

mrsnobody

Onlooker I work in the Equity Release industry and although I don't need to take equity release at the moment, I would consider it without hesitation if I was struggling in retirement (which I may well be). My children would far rather I had a comfortable lifestyle than worry about what inheritance I may or may not leave them. ER needn't cost the borrower a penny (unless you choose to make repayments) but it absolutely can reduce your estate. This fact is not hidden - it is clearly stated in all lenders' sales and contractual documents and is covered fully by the customer's independent solicitor prior to completion - legal advice is a mandatory requirement.

Your early repayment charge is currently at the maximum of 25% due to the movement of the FTSE 15 year gilt index, this is completely outside the control of the lenders. If gilts had moved favourably over the last few years your ERC could very well be nil, and indeed could be nil at some point in future.

Instead of continually moaning about the plan that you yourself chose to take out (and freely admit that you didn't read the documentation properly) why don't you engage the services of a specialist ER adviser to see if it would be beneficial for you to switch lender? Even with the ERC and fees applicable, the lower interest rates in the market now mean that this is often better over the long term.

Onlooker

Figures provided by Nationwide show average house price in the UK in the last 12 months have increased by 0.2% to £215,352.00 actually lower than last months price.This shows that an annual house price increase of the 3%plus required to keep the present value of your home is a long way off with no guarantee as and when values will improve.Figures show an annual 1% increase house prices will show a figure of £237,882 00 in 10 years minus , for example,a £50,000.00 Lifetime Mortgage @5% for 10 years will increase to £81,444.00 leaving you property worth £156,438.00 A 3% annual increase using the same would increase your said property to £289,415.00 minus £81444.00 showing an increase in your worth at £207,971.00.Get your figures of borrowings which will of course vary Consider

Onlooker

Two items again not discussed i.e.Loss to charities by less monies being donated due to estates values being eroded by Equity Release etc Also .another charity paying commission to one of the leading providers by recommending to themselves and thus getting them in something that will cost them in the future.
Silverline a charity started as a offshoot of Childilne by Ester Rantzen has now teamed up with Age UK the said charity.We believed that they both put the interest of the vunarable older generations first.Is Ms.Rantzen going to work to make their decisions on their future equity easier to understand and thereby more protection Consider

Onlooker

With regard to Early Repayment Charge.The maximum charge is 25% of any Lifetime Mortgage if anyone decides on any option to leave and applies from day one with no cooling off period.
In our case and many thousands of others the maximum 25% has been in place without reducing for the last five years and more years at over 20% before that.
To find a cheaper rate you will have to check your figures as to how many years will it be before you save the cost of your Early Repayment Charge.
Best option at this time of falling house price inflation and the futere effect on you holdings is to find an other option to borrow Consider.