Lifetime Mortgage

Alshamal

New here so be gentle with me! I’m just starting the process of remortgaging as my existing one ends soon, Santander wont let me remortgage because I’m 73.I’m looking to borrow £35,000 my property is worth £170k. I’ve had a couple of conversations one with a very  well known provider ! Which brought to a close as i was not comfortable with the conversation. I spoke with another well known provider and the advisor who i was much more comfortable with and very patient ! I was given details of a Retirement Interest Only Mortgage.
loan £35,000 Property £170,000   10 years fixed estimated term 15 years.
£98.88 a month for 10 years fixed  @ 3.30% then £104.66 @ 3,59% variable standard mortgage rate.
After 15 years Outstanding balance £34,982.09 Balance decrease £17.91 Loan to value 20.58% Total amount payable £53,125
Dose this look like something I should be expecting from a majority of providers ?
any suggestions and advice would be greatly appreciated !
But I don’t want Chapter and Verse form Onlooker2 !!!
Thanks 🙏 in anticipation 

MWT

Alshamal said:

New here so be gentle with me!...

Trying to be gentle, but you keep posting in the wrong place...

You need to start your own thread not add to unrelated threads.

Last time you did this the moderators split your post into its own thread which you can find here:

https://forums.moneysavingexpert.com/discussion/comment/78308529

Onlooker2

At the risk of repeating ourselves the best advice we can give at these vey difficult financial times for the many householders seeking to raise monies against their properties is to gain as much information as they can.
Look to the discussions on these pages from both sides of the coin.Consider

Onlooker2

A leading financial page points out that the number of people suffering from  dementia is set to rise to over 1 million within the next few years..It also points out the fact that many ,at least 1 in 7,will fall victim to financial  abuse managing  their own affairs .
That is a six figure number of people losing perhaps millions of pounds from their paid for property..
Advice for families is to draw up a Lasting Power of Attorney which allows named individuals to make financial and health decisions on their behalf..Advice is to be quick with this action before their dementia progresses or you maybe too late.
Quoted in the Daily Express May 19th.Consider

Onlooker2

Borrowing against your property by way of a lifetime mortgage is the only way of raising monies which involves the complication of  what has to be done upon any householder having to enter long term care,ie repaying all of a lifetime mortgage plus compounded interest.you  need to know the time factor allowed to repay borrowings,what residue will be then be left to pay for you future .Many things to be taken into account by borrowing long term this way.Get independant advice.Consider

Onlooker2

Recent report from Financial Conduct Authority with regard to a case brought against a financial company who where ordered to repay customers compensation for being mis-sold unaffordable loans.The said company took the decision to the High Court were they lost the case against them.Now they are busy deciding whether to go bankrupt or not to find a way not to compensate the customers who were overcharged.This is only one example  of how things work with lenders.Consider

MWT

This would be Amigo Loans I assume?

Absolutely nothing to do with 'Lifetime Mortgages' ...

Onlooker2

The Financial Conduct Authority are proposing to bring in new measures to protect consumers.It wil be called The Consumer Duty which firms will have to follow or face regulatory action .They will be required to take steps to ensure that they is no avoidable financial harm to customers and to act in good faith.They say that the providers should put themselves into th shoes of borrowers..
Look up FCA they are taking comments until 31s.July and expect changes to be made 12 months later'This is the time to wait before taking out long term financial commitments.Wait .Consider

GeordieGeorge

Yes, unfortunately sensible adults are going to be restricted in how they can borrow because of the actions of the sort of person who’d take out a lifetime mortgage because they wanted a shiny new car to impress the neighbours.

Onlooker2

As part of our borrowins 12 years ago we used some of the monies raised i.e £9000.00 on a much needed used car and not been advised against this action by the mortgage rep.we went ahead.
Just one of the mistakes which will be made by anyone raising monies against their own property by way of Equity Release/Lifetime Mortgage.
The 13 year old car has now had to be scrapped ,the consequence of us borrowing tthis way are that we still owe £18,315.00 to the providers which will increase to £21,876.00 in 3 more years and continue to do so and this is only part of our lon term debt which is overall into 6 figures now.Look to other ways ,everthing you buy can cist you double in you future,Consider