Lifetime Mortgage

Onlooker

All of the providers and their agents are bringing to notice the fact that Lifetime Mortgages are available to 55 year olds and upwards.This bring to mind how long and to what effect it will have on their future.The compounding interest on said borrowing will in the future be guaranteed to double the amount owed in approx 15 years, treble in about 20 years and quadrupal in about 25 years.This will be the result on all borrowings whatever the amount of money taken from anyones estate with 80 years of age seemingly quite achievable now.Get your own personal quotation.Consider.

Onlooker

One factor with regard to talking out a loan using a Lifetime Mortgage attached to compounding interest are the future consequences.We would think that the greater majority of householders borrowing this way are couples.The future difficulties will happen with the passing of one of the partners leaving the debt problem to the survivor,a debt which may have doubled or trebled depending on the time factor and will continue to rise.Alternatives are there.Consider

Jean_Molcher

A warning to everyone looking for equity release. We have been refused as the foam insulation in our roof is considered a risk and no one will give you equity release if you have this. We thought we were doing the right thing to insulate our roof. Obviously not.

AnotherJoe

Jean_Molcher wrote: »

A warning to everyone looking for equity release. We have been refused as the foam insulation in our roof is considered a risk and no one will give you equity release if you have this. We thought we were doing the right thing to insulate our roof. Obviously not.

Is that the foam thats sprayed on the underneath of the tiles? I thought that had died away years ago due to all the numerous problems it could cause.

Insulating your roof space is a good idea, hermetically sealing it so moisture cannot escape was not.

Harryo

Is it practical for you to have the foam removed and replaced with an alternative material and to re-apply to another provider??



We realised that a Lifetime Mortgage was our only option other than move, which we did not want to do and were not really in a position to do. We therefore did what we thought was the best way to improve the appearance and value of our house to ensure our best chances of being successful.



We spent two solid months tidying the house, garden and garage, de-clustering with a vengeance, repairing or replacing all visable damage, putting on a lick of paint where necessary, removing asbestos cement corrugated roofing on the garage, cleaning, etc. Really the same exercise as we would have done had we been selling the house.

robatwork

Jean_Molcher wrote: »

A warning to everyone looking for equity release. We have been refused as the foam insulation in our roof is considered a risk and no one will give you equity release if you have this. We thought we were doing the right thing to insulate our roof. Obviously not.

I rejected a house I was serious about buying when I discovered this foam abomination on the tiles and the moisture dripping from it. Homeowner wasn't too keen to let me into the loft.

Consider.

Onlooker

At the close of 2019 annual property prices rose by 1.4% i.e.£3286.00 This figure is only 50% of what is required to reduce the equity in householders property which are subject to a holding on said property by a Lifetime Mortgage provider.At a 1% rate for say 10 years £21000 could be added to the property value,not guaranteed,whilst a £50.000 equity release loan will increase with compounding interest of say 5% to £81,4444.guaranteed.Consider

Onlooker

Recently the Treasurer has made a ruling against the financial industry with one particular way of making loans.This has meant that the lenders i.e.banks & building society are fighting for customers bringing down the percentage for borrowing down.
The mortgages to retired people are also cheaper and plentiful.Look to these providers as an alternative to Equity Release and Lifetime Mortgages which will prove to be a lot more costly.Get quotes before committing.Consider

equity.release.adviser

Equity release is not right for everybody but is right in the right circumstances. The plans of today have alot of great features including ad-hoc payment options allowing to pay the interest and chip away at the capital on a flexible basis and drawdown plans allowing you to release money only when it is required and not as a lump sum accruing interest from day one. You need to look at the bigger picture as everybody's circumstances and families are different.

Onlooker

When taking out a mortgage for your lifetime you must borrow firstly enough monies to pay off any outstanding mortgage on you property which will be probably at double the rate you are paying now and will be charged at compounding interest which wiil double your debt in about 15 year along with any other borrowings.
There a 25% charge against any borrowings with no cooling off period should you realize you want to borrow another way.Alternatives are there.Get 5/10/20 year estimates first.Consider