Lifetime Mortgage

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?

Jonathan_Kelvin

Onlooker wrote: »

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

I think that you’ve got this the wrong way round, don’t take one out to buy a car, but if you do, don’t blame others.

Onlooker

There are many cheaper alternatives to taking out a mortgage for your lifetime and the costs involved with compounding interest being applied thus doubling your debt in the future.
Look to Retirement interest only Mortgages .Look to Later life Mortgages Look to the interest rates being offered by every lender.All less than half the cost of a Lifetime Mortgage.Consider

Onlooker2

Compounding interest rules all aspects of a Lifetime Mortgage.Your borrowings will double.treble and even become bigger the longer your lifetime.The only part relief is house price annual inflation.This has to be at least 3% to save any monies.Over the past 2 years it has been below 1% in both years and with a forecast of the same this year the best option is to borrow another less expensive way.Consider

Jag-gar

Any deficiency depends on the interest rate and also on the loan to value ratio. The smaller the loan compared to property value will result in a greater beneficial gain from house price increases. Latest indications are that house price inflation has increased recently. Hopefully that will continue for those who have a Lifetime Mortgage.

Onlooker2

Two aspects to bear in mind when taking out a mortgare for your lifetime is ,firstly ,any outstanding mortgage against your property has to be paid off from your new borrowings ,maybe at a higher interest rate ,which is compounded, and certainly for a much longer unknown period of time and therefore a greater cost.The fact that.once taking Lifetime Mortgage and you decide to opt out a 25% charge against whatever you have borrowed will be made.Consider.

ledonster

The 25% exit fee only applies as a worse car scenario and even then, thats only with lenders like Aviva or l&g. Some lenders have fixed penalties that get smaller as time goes by eg: 5% in first 5 yes, 3% in yrs 6-10 then penalty free after. It's true that this is a long term commitment that requires lots of careful consideration. This is precisely why people should stay away from 'the guys on the telly' and seek professional advice from an Independent Financial Adviser. only an IFA can consider ALL options and advise on the best course of action. 

Onlooker2

Recent figures figures from a leading provider.Release £50,000.from  your property 4.55%
  Debt will increase  in 5 years to £62,458.00
                                  10 years to £78,020.00
                                  15 years to £97,460.00
These amounts will continue to rise on an annual basis until you pass on or will have to be paid off if you go into care.
Consider.

Linton

Onlooker2 said:

Recent figures figures from a leading provider.Release £50,000.from  your property 4.55%
  Debt will increase  in 5 years to £62,458.00
                                  10 years to £78,020.00
                                  15 years to £97,460.00
These amounts will continue to rise on an annual basis until you pass on or will have to be paid off if you go into care.
Consider.

Of course you should carefully consider it, just like you should carefully consider any other major financial transaction.  On consideration you could come to the perfectly rational conclusion that £50K now would lead to greater well-being for you and your spouse during your final years than £100K going to some distant relations when you both die.

SpiderLegs

It seems the OP is now resorting to creating multiple accounts to spam this board with the same old nonsense. Surely this is the kind of forum behaviour we need the mods to ‘consider’