Lifetime Mortgage

Onlooker2

  To get involved in  a Lifetime Mortgage is an expensive and risky way to raise  cash according to reports.Please be careful of the long term consequences There are alternatives ,cheaper and plentiful,even for say 5 years and then the position every householder could be in the short term may have resolved itself.Consider

Fighter1986

Are you OK Onlooker?
Bit worried about you over here 

dunstonh

To get involved in  a Lifetime Mortgage is an expensive and risky way to raise  cash according to reports.

Reports can be misleading or be misinterpreted.    it also depends on what generation you are talking about.   i.e. 1980s versions or today's versions.

 There are alternatives ,cheaper and plentiful,even for say 5 years and then the position every householder could be in the short term may have resolved itself.

A lot of equity release providers are now charging the same as residential mortgages.  They are not as expensive as they used to be.

That said, ER should be viewed as an option that should need justification and reasoning. Not something done on a whim.  The pros and cons should be considered carefully.

robatwork

Oh Crikey - now he's encouraged dunstonh into his web.

Thrugelmir

robatwork said:

Oh Crikey - now he's encouraged dunstonh into his web.

Consider

Onlooker2

Nationwide comment regarding the position we are in at this time.Quote We are in unprecedented times and an uncertain mortgage market and negative equity.Consider

ACG

Onlooker2 said:

Nationwide comment regarding the position we are in at this time.Quote We are in unprecedented times and an uncertain mortgage market and negative equity.Consider

Lifetime mortgages only get repaid when you die or go in to a home. Lenders do not take additional monies from your estate (as far as I am aware), so once you have the money, it does not matter what happens to your home, is house prices plummet who cares? It is the mortgage provider who loses out. 

Onlooker2

The Financial Conduct Authority on the 17th.June released an official review of Equity Release providers actions.Look up Equity Release Sales and Advice,then look and read their findings on their site before taking any action at this time.They include the statement that the ongoing Covid 19 position reinforces the importance of advice to individual needs and circumstances.They also state that their review is ongoing.Consider

Onlooker2

We think that all householders should care,if not for themselves ,the effect of getting into this way of borrowing can be very costly..
20 householders borrow £ 50,000 this way ,that is £1million 50 householders borrow £20000 this way ,that is £1million .Both amounts will double their debts at some time in their future,gauranteed.Alternatives are cheaper are out there.Consider

Onlooker2

House price inflation has put all house owners in a great financial position obviously .but has never been guaranteed.The position that we are all in now could  lead to a loss of enough inflation to stop a  reduction in the value of their estate to all borrowings by way of Lifetime Mortgages.No guarantee against this.To wait and see or to borrow an other way should be the sensible criteria.The last time house prices fell was 2008 and they took 5 years to recover.Consider