Next Mis-selling scandal looms

Keep_pedalling

Some people would prefer to spend what they have on themselves rather than leave it for others to spend. Unless you have a terminal illness no one knows when they are going to die so timing your spending to end up with zero is impossible. ER does give you the opportunity to spend more without the risk that you will end up homeless so will be attractive to some.

Voyager2002

Do mis-selling laws apply to Next?

They advised me to buy some trousers for a job interview but everyone says they make me look daft and I did not get that job. Surely I deserve some compo?

Malthusian

Voyager2002 wrote: »

Do mis-selling laws apply to Next?

They advised me to buy some trousers for a job interview but everyone says they make me look daft and I did not get that job. Surely I deserve some compo?

If they were sold to you as smart office wear then you can argue they were not fit for purpose and you should get your money back. The right to compensation if someone missells you a financial product is very similar. So the short answer is yes they do, albeit via different legislation.

thrifty_pete

Are there any mainstream banks who would offer a homeowner loan funded from a pension?
Maybe better to rent out a room for some extra cash?

westv

dividendhero wrote: »

IMHO If they're paying the interest on schedule, then there should be no roll-up

Am I missing something?

That sounds like a lifetime mortgage.

Paul_DNAP

dividendhero wrote: »

IMHO If they're paying the interest on schedule, then there should be no roll-up

Am I missing something?

Yes, the part you are missing is that there are no repayments being made agianst the loan at all.

It is basically "We can lend you £65k, we will add 7.15% to it every year. And when you die we will take the entire outstanding balance from your house sale. (Oh and by the way, the interest will be compouding itself.)"

So the longer you live, the more you owe - well, your estate owes it not you.

Keep_pedalling

Can I claim for P&O miss-selling my parents some very expensive holidays that they spent my inheritance on?

Malthusian

thrifty_pete wrote: »

Are there any mainstream banks who would offer a homeowner loan funded from a pension?

In principle - some. In this case - almost certainly not as if the couple went for equity release it suggests they spent all their pension income. Which means they don't have any to spare for interest payments.

bostonerimus

Malthusian wrote: »

No-one who takes out equity release is desperate. Wonga borrowers are desperate, equity release borrowers just want to get some money out of their house and still live in it.

Agreed, but not everyone sees the latter as a priority.

If you have to use equity release to stay in the house then I think you are pretty desperate to stay somewhere you can't really afford. Having to use equity release is often a symptom of poor financial habits and planning.

Glen_Clark

The Equity release people are buying property, but they don't know when they will get it, whether they will have to evict squatters, what state it will be in, how much it will be worth, and how long it will take to sell.
They can't assume house prices will keep rising. More and more voters are being priced out of the property market - may come a time when they force the vested interests to relax planning restrictions, increase property supply, and prices fall.
Can't blame them for wanting a big margin to cover all that risk.