Lifetime Mortgage

Onlooker2

Good advice from the industry,yes go from page one..Readers do not have to join to read but can gain information as to the workings of this way of borrowing.
Note the majority of replies denegrate anyone whose opinion does not allies with their own monetary self protection.
We still advocate waiting upon the Financial Conduct Authorities decisions with regard to the protection of all borrowers,due within the next year .
Wait,choose, a cheaper alternative over a shorter term other than your lifetime.Consider

Onlooker2

Latest figures show that the average compounding interest rate being charged by this lending industry is 4.21%.this will mean rolled up interest on your lifetime borrowings will mean you will owe more than double in 17 years and triple the amount owed against your property in 26 years and will go on rising until you pass away..
Much shorter terms on interest rates are on the market now of all the many different ways of raising monies.
Have your future estimates supplied before entering into a lifetime of debt..Consider

Onlooker2

The money lending market is at this moment in time being inundated with Equity release adverts.Buyer beware .Unless you have some inside knowledge this is far from the time to borrow for you and your families lifetime.Many are advocating takingout monies  to gift to their siblings without pointing out that if you have to go into care they will be legally required to pay back the the said monies to pay for your care.It is called deliberate depletion of assets'
Help them yes but in other shorter term ways.Consider

Onlooker2

Recent full page advert taken out by one of the providers commission agents shows an average amount ot £76677.00 was raised by borrowing against their property by way of a Lifetime Mortgage.
The average interest rate being charged at this moment in tine is about 4%.using these figures it will show that this debt will grow to £113,501.00 in 10 years.£138,290.00 in15 years.£168,208.00 in 20 years.
It should be born in mind that there is no cooling off period at the start of this manner of borrowing and should someone decides to stop this loan there will be a Early Repayment Charge of 25% of your original loan added to your final debt.bill.Consider

MWT

Onlooker2 said:

... and should someone decides to stop this loan there will be a Early Repayment Charge of 25% of your original loan added to your final debt.bill.Consider

Consider actually checking the facts before posting

25% ERC would be highly unusual in the current market, 10% reducing at 1% PA is far more typical.

Onlooker2

The Financial Conduct Authority have posted an update on 8/10/2021 with regard to the new Consumer Duty Act to be brought into effect within the next 9 Months.
It will set out the new rules to protect consumers particularly regarding any buy now pay later products ,support for people with financial difficulties whom they expect will increase in even greater numbers as a consequence of the aftermath of covid 19 which they state are still unfolding.
Waiting is an option Alternatives are available.Borrow short term is another better than committing to an unknown length of your lifetime.Consider

Onlooker2

The best action to be taken before borrowing for your unknown Lifetime is to calculate ,privately if possible,your costing.Compounding interest is attached to this way and is the most expensive way to borrow.
The latest newspaper advert can be used as an example.
It shows a figure of £76,677.00 as an average borrowing ..It does not show anyones future depreciation in their property wealth.
For example this debt will increase to £113,500.00 in 10years,£138,090.00 in 15 years.£168,008.00 in 20 year.
£204,408.00 in 25 years.That is over £127,000.00 in added on interest to be paid on this one example.
Shorter ways are available and will be less costly in you  future.Consider.