Lifetime mortgage

AllenA_2

I am 68 years old, I have a £70K interest only mortgage due in about 16 months time, the property being approximately valued at around £120K at present
Having investigated the rules etc, I cannot get any form of equity release for one reason or another and there does not seem to be any other options open to me than to be forced to sell when the mortgage is due.

I would like to stay here, keep this place but as with a great deal of others in a similar situation there does not seem to be any form of legislation or way this can happen.
I have heard of what are termed lifetime mortgages but it seems that although they are supposed to be different from equity release, the advisors etc are apparently blurring the lines between this and equity release and applying the same rules and conditions as they do to equity release, the result being that I cannot get a resolution whereby I can keep my home.

Does anyone know of a way I can resolve this so I can stay here ?

marliepanda

AllenA wrote: »

I am 68 years old, I have a £70K interest only mortgage due in about 16 months time, the property being approximately valued at around £120K at present
Having investigated the rules etc, I cannot get any form of equity release for one reason or another and there does not seem to be any other options open to me than to be forced to sell when the mortgage is due.

I would like to stay here, keep this place but as with a great deal of others in a similar situation there does not seem to be any form of legislation or way this can happen.
I have heard of what are termed lifetime mortgages but it seems that although they are supposed to be different from equity release, the advisors etc are apparently blurring the lines between this and equity release and applying the same rules and conditions as they do to equity release, the result being that I cannot get a resolution whereby I can keep my home.

Does anyone know of a way I can resolve this so I can stay here ?

What was your original plan to pay off the mortgage? Usually with interest only mortgages you put a vehicle in place to pay off the capital once it runs out.

Without a vehicle to pay it off youve basically rented a house from the bank cheaply for a long time.

dunstonh

Having investigated the rules etc, I cannot get any form of equity release for one reason or another

What reason?

I have heard of what are termed lifetime mortgages but it seems that although they are supposed to be different from equity release, the advisors etc are apparently blurring the lines between this and equity release and applying the same rules and conditions as they do to equity release, the result being that I cannot get a resolution whereby I can keep my home.

The term equity release covers all methods of equity release, including lifetime mortgages. A lifetime mortgage is a type of equity release. Advisers are not blurring lines.

Does anyone know of a way I can resolve this so I can stay here ?

Speak to a local IFA who does equity release.

AllenA_2

I am aware of that .. the situation being that having moved here in 1988 my then wife decided in 1989 that she 'didn't want to be married anymore' .. her exact words ..

I was left to bring up the children and re-mortgaged a couple of years later at the divorce to pay her off, the interest only option being best at the time due to other financial constraints. Since that time due to bringing up the kids on my own, ill health and other things I have not been in a position to do much, not looking for a quick simple answer, just a way to stay here.

AllenA_2

They tell me I do not have enough equity, for one thing, income for another, it seems that even if I had double equity I still couldn't do it, I was told by one advisor that it was down to the Govt money men who set the rules and regulations re equity release ??

In speaking to advisors, or at least the ones I have spoken to, the answers seem to be the same for a lifetime mortgage as they do for equity release ... ??

As you can tell from both of my comments above I have spoken to financial advisors .. !!

TrickyDicky101

How old are your kids? Can they help you (financially)?

A likely problem you will face is your age is too young and the loan-to-value too high for equity release to be a possible solution.

kingstreet

Look here;-

http://www.equityreleasecouncil.com/consumer-information/what-is-equity-release/equity-release-plans/

then contact an IFA or Mortgage Broker with extended permissions to advise on Lifetime Mortgages.

There are products where the interest is paid, rather than allowed to roll-up; pretty much the interest-only mortgage you have now.

AllenA_2

As a layman, a normal sensible person with a good credit rating ... what I would like essentially is say an £85k loan on a lifetime mortgage, I could afford to pay approx £300 a month for however long it takes, and then when the time came for the need to sell, my estate would pay back the principle plus say 15% of the equity, the £300 a month being a bonus to it all ... but of course I'm dreaming aren't I ... it is never that simple is it ... ??

dunstonh

In speaking to advisors, or at least the ones I have spoken to, the answers seem to be the same for a lifetime mortgage as they do for equity release ... ??

As said above, equity release covers all types. Lifetime mortgages are a type of equity release.

In theory, a normal mortgage could be considered a form of equity release in discussion terms. I think it is better for you to avoid looking for certain words and focus on the objective instead and let the IFA or mortgage broker handle the words.

AllenA_2

Kingstreet .. thank you for that .. I have though been there, read all those things etc, however it is when I go to try and get them implemented that I get the negative replies ... I am either talking to the wrong people or perhaps the people am talking to are working to their own agendas as I cannot get to a positive solution...??

TrickyDicky101

It may also be given the amount of borrowing desired and the value of your property (and current income) you won't have an option that facilitates full repayment of your current mortgage as the risks don't stack up for a potential lender.

Could your children help?