Equity Release - action groups

user1977

Pollycat said:

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

OK.
Maybe it would have been better if you had put it like that in the first place.

I can't understand why anyone would take such a big financial decision like equity release without taking independent advice.

This site, which is non-advisory, recommends non-advisory providers of loans in excess of the amount of the lifetime mortgage the OP's parents took. Not many are going to go to an advisor for £40k loans this site promotes. 

Even with regular mortgages 40% of people buy without any form of broker and not all the brokers the other 60% use are advisory. 

The reality of direct sales, telephone/internet applications etc is that people think advice is expensive and doesn't add value. Unfortunately many of these are also the people that click the "I agree" button to 10 pages of T&Cs without reading any of them. 

So...
Caveat emptor.
Your money.
Your responsibility to look after it.
Or not if you can't be bothered to read what you're signing up to.

Yes and no... if you cannot be bothered to read what you are agreeing to then certainly you should accept the responsibility for that.

There are however some very complex financial products out there and there is probably good reason why they aren't available for people to buy on confused.com, and some not even via advisors. 

LTMs are complex from an underwriting perspective as you are balancing longevity risk against property prices and interest rates but from a consumer side they're not much more complex than a traditional mortgage

But equity release is available to buy via Google or one of the TV ads.

Yes, but the process requires you to get advice.

Pollycat

user1977 said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

OK.
Maybe it would have been better if you had put it like that in the first place.

I can't understand why anyone would take such a big financial decision like equity release without taking independent advice.

This site, which is non-advisory, recommends non-advisory providers of loans in excess of the amount of the lifetime mortgage the OP's parents took. Not many are going to go to an advisor for £40k loans this site promotes. 

Even with regular mortgages 40% of people buy without any form of broker and not all the brokers the other 60% use are advisory. 

The reality of direct sales, telephone/internet applications etc is that people think advice is expensive and doesn't add value. Unfortunately many of these are also the people that click the "I agree" button to 10 pages of T&Cs without reading any of them. 

So...
Caveat emptor.
Your money.
Your responsibility to look after it.
Or not if you can't be bothered to read what you're signing up to.

Yes and no... if you cannot be bothered to read what you are agreeing to then certainly you should accept the responsibility for that.

There are however some very complex financial products out there and there is probably good reason why they aren't available for people to buy on confused.com, and some not even via advisors. 

LTMs are complex from an underwriting perspective as you are balancing longevity risk against property prices and interest rates but from a consumer side they're not much more complex than a traditional mortgage

But equity release is available to buy via Google or one of the TV ads.

Yes, but the process requires you to get advice.

Yes, that's true.

Before applying for a lifetime mortgage or home reversion plan, you'll first need to seek advice from a qualified equity release adviser. This is a requirement of the Financial Conduct Authority.

From this MSE article:
How equity release works and risks involved - MSE (moneysavingexpert.com)

So don't these people listen to the financial advice they're given and proceed regardless?
Or are some advisors giving poor advice?

In the latter case, my comment applies:

 Pollycat said:
The OP may find this link useful:
Equity release: Financial Ombudsman Service (financial-ombudsman.org.uk)

user1977

Pollycat said:

user1977 said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

OK.
Maybe it would have been better if you had put it like that in the first place.

I can't understand why anyone would take such a big financial decision like equity release without taking independent advice.

This site, which is non-advisory, recommends non-advisory providers of loans in excess of the amount of the lifetime mortgage the OP's parents took. Not many are going to go to an advisor for £40k loans this site promotes. 

Even with regular mortgages 40% of people buy without any form of broker and not all the brokers the other 60% use are advisory. 

The reality of direct sales, telephone/internet applications etc is that people think advice is expensive and doesn't add value. Unfortunately many of these are also the people that click the "I agree" button to 10 pages of T&Cs without reading any of them. 

So...
Caveat emptor.
Your money.
Your responsibility to look after it.
Or not if you can't be bothered to read what you're signing up to.

Yes and no... if you cannot be bothered to read what you are agreeing to then certainly you should accept the responsibility for that.

There are however some very complex financial products out there and there is probably good reason why they aren't available for people to buy on confused.com, and some not even via advisors. 

LTMs are complex from an underwriting perspective as you are balancing longevity risk against property prices and interest rates but from a consumer side they're not much more complex than a traditional mortgage

But equity release is available to buy via Google or one of the TV ads.

Yes, but the process requires you to get advice.

Yes, that's true.

Before applying for a lifetime mortgage or home reversion plan, you'll first need to seek advice from a qualified equity release adviser. This is a requirement of the Financial Conduct Authority.

From this MSE article:
How equity release works and risks involved - MSE (moneysavingexpert.com)

So don't these people listen to the financial advice they're given and proceed regardless?
Or are some advisors giving poor advice?

In the latter case, my comment applies:

 Pollycat said:
The OP may find this link useful:
Equity release: Financial Ombudsman Service (financial-ombudsman.org.uk)

I think most of the people posting about it here (such as the OP) are talking about more historic transactions, when the regulatory framework was lighter. If the OP wants more advice they'll need to identify the relevant date in order to identify what ought to have happened at the time.

Though I suspect that, once again, they won't log in for another year...

born_again

Well they have not been back since posting. So clearly a very important issue  🤷‍♀️

Last Active

16 February at 6:08PM

Keep_pedalling

user1977 said:

Pollycat said:

user1977 said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

OK.
Maybe it would have been better if you had put it like that in the first place.

I can't understand why anyone would take such a big financial decision like equity release without taking independent advice.

This site, which is non-advisory, recommends non-advisory providers of loans in excess of the amount of the lifetime mortgage the OP's parents took. Not many are going to go to an advisor for £40k loans this site promotes. 

Even with regular mortgages 40% of people buy without any form of broker and not all the brokers the other 60% use are advisory. 

The reality of direct sales, telephone/internet applications etc is that people think advice is expensive and doesn't add value. Unfortunately many of these are also the people that click the "I agree" button to 10 pages of T&Cs without reading any of them. 

So...
Caveat emptor.
Your money.
Your responsibility to look after it.
Or not if you can't be bothered to read what you're signing up to.

Yes and no... if you cannot be bothered to read what you are agreeing to then certainly you should accept the responsibility for that.

There are however some very complex financial products out there and there is probably good reason why they aren't available for people to buy on confused.com, and some not even via advisors. 

LTMs are complex from an underwriting perspective as you are balancing longevity risk against property prices and interest rates but from a consumer side they're not much more complex than a traditional mortgage

But equity release is available to buy via Google or one of the TV ads.

Yes, but the process requires you to get advice.

Yes, that's true.

Before applying for a lifetime mortgage or home reversion plan, you'll first need to seek advice from a qualified equity release adviser. This is a requirement of the Financial Conduct Authority.

From this MSE article:
How equity release works and risks involved - MSE (moneysavingexpert.com)

So don't these people listen to the financial advice they're given and proceed regardless?
Or are some advisors giving poor advice?

In the latter case, my comment applies:

 Pollycat said:
The OP may find this link useful:
Equity release: Financial Ombudsman Service (financial-ombudsman.org.uk)

I think most of the people posting about it here (such as the OP) are talking about more historic transactions, when the regulatory framework was lighter. If the OP wants more advice they'll need to identify the relevant date in order to identify what ought to have happened at the time.

Though I suspect that, once again, they won't log in for another year...

Most people posting about this are also not the people who took out the loan, but the children just realising their inheritance is not going to be what they thought it was going to be.

TELLIT01

The parents of a friend of mine took out equity release many years ago, in the less regulated days.  He wasn't aware of it until they died and he was executor of their estate.  There was little left for him and his two sisters, which didn't bother him but did amuse him greatly when one of his sisters did hit the roof and complained about 'not getting her money'.

DullGreyGuy

Pollycat said:

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

OK.
Maybe it would have been better if you had put it like that in the first place.

I can't understand why anyone would take such a big financial decision like equity release without taking independent advice.

This site, which is non-advisory, recommends non-advisory providers of loans in excess of the amount of the lifetime mortgage the OP's parents took. Not many are going to go to an advisor for £40k loans this site promotes. 

Even with regular mortgages 40% of people buy without any form of broker and not all the brokers the other 60% use are advisory. 

The reality of direct sales, telephone/internet applications etc is that people think advice is expensive and doesn't add value. Unfortunately many of these are also the people that click the "I agree" button to 10 pages of T&Cs without reading any of them. 

So...
Caveat emptor.
Your money.
Your responsibility to look after it.
Or not if you can't be bothered to read what you're signing up to.

Yes and no... if you cannot be bothered to read what you are agreeing to then certainly you should accept the responsibility for that.

There are however some very complex financial products out there and there is probably good reason why they aren't available for people to buy on confused.com, and some not even via advisors. 

LTMs are complex from an underwriting perspective as you are balancing longevity risk against property prices and interest rates but from a consumer side they're not much more complex than a traditional mortgage

But equity release is available to buy via Google or one of the TV ads.

You're able to start the process via Google but you will have to talk to an advisor.

Pollycat said:
So don't these people listen to the financial advice they're given and proceed regardless?

Or are some advisors giving poor advice?

Why do you assume that a financial advisor would never recommend a lifetime mortgage? Were that the case you'd expect the regulators to not allow the product. 

As mentioned here, those that hate the product are typically the kids expecting a juicy inheritance from their parents who are disappointed when they find its less than they assumed. For the debtor most get what they wanted which is a substantial sum of money, no repayments and being able to continue to live in their home for as long as they want. 

Pollycat

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

OK.
Maybe it would have been better if you had put it like that in the first place.

I can't understand why anyone would take such a big financial decision like equity release without taking independent advice.

This site, which is non-advisory, recommends non-advisory providers of loans in excess of the amount of the lifetime mortgage the OP's parents took. Not many are going to go to an advisor for £40k loans this site promotes. 

Even with regular mortgages 40% of people buy without any form of broker and not all the brokers the other 60% use are advisory. 

The reality of direct sales, telephone/internet applications etc is that people think advice is expensive and doesn't add value. Unfortunately many of these are also the people that click the "I agree" button to 10 pages of T&Cs without reading any of them. 

So...
Caveat emptor.
Your money.
Your responsibility to look after it.
Or not if you can't be bothered to read what you're signing up to.

Yes and no... if you cannot be bothered to read what you are agreeing to then certainly you should accept the responsibility for that.

There are however some very complex financial products out there and there is probably good reason why they aren't available for people to buy on confused.com, and some not even via advisors. 

LTMs are complex from an underwriting perspective as you are balancing longevity risk against property prices and interest rates but from a consumer side they're not much more complex than a traditional mortgage

But equity release is available to buy via Google or one of the TV ads.

You're able to start the process via Google but you will have to talk to an advisor.

Pollycat said:
So don't these people listen to the financial advice they're given and proceed regardless?

Or are some advisors giving poor advice?

Why do you assume that a financial advisor would never recommend a lifetime mortgage? Were that the case you'd expect the regulators to not allow the product. 

As mentioned here, those that hate the product are typically the kids expecting a juicy inheritance from their parents who are disappointed when they find its less than they assumed. For the debtor most get what they wanted which is a substantial sum of money, no repayments and being able to continue to live in their home for as long as they want. 

If you read my later post you'll see I agreed with user1977 regarding the requirement for financial advice.
And even posted a link to the MSE article that stated that.

There is no assumption in my post you quoted.
I assumed nothing.
I asked 2 questions.

DullGreyGuy

Pollycat said:

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

OK.
Maybe it would have been better if you had put it like that in the first place.

I can't understand why anyone would take such a big financial decision like equity release without taking independent advice.

This site, which is non-advisory, recommends non-advisory providers of loans in excess of the amount of the lifetime mortgage the OP's parents took. Not many are going to go to an advisor for £40k loans this site promotes. 

Even with regular mortgages 40% of people buy without any form of broker and not all the brokers the other 60% use are advisory. 

The reality of direct sales, telephone/internet applications etc is that people think advice is expensive and doesn't add value. Unfortunately many of these are also the people that click the "I agree" button to 10 pages of T&Cs without reading any of them. 

So...
Caveat emptor.
Your money.
Your responsibility to look after it.
Or not if you can't be bothered to read what you're signing up to.

Yes and no... if you cannot be bothered to read what you are agreeing to then certainly you should accept the responsibility for that.

There are however some very complex financial products out there and there is probably good reason why they aren't available for people to buy on confused.com, and some not even via advisors. 

LTMs are complex from an underwriting perspective as you are balancing longevity risk against property prices and interest rates but from a consumer side they're not much more complex than a traditional mortgage

But equity release is available to buy via Google or one of the TV ads.

You're able to start the process via Google but you will have to talk to an advisor.

Pollycat said:
So don't these people listen to the financial advice they're given and proceed regardless?

Or are some advisors giving poor advice?

Why do you assume that a financial advisor would never recommend a lifetime mortgage? Were that the case you'd expect the regulators to not allow the product. 

As mentioned here, those that hate the product are typically the kids expecting a juicy inheritance from their parents who are disappointed when they find its less than they assumed. For the debtor most get what they wanted which is a substantial sum of money, no repayments and being able to continue to live in their home for as long as they want. 

If you read my later post you'll see I agreed with user1977 regarding the requirement for financial advice.
And even posted a link to the MSE article that stated that.

There is no assumption in my post you quoted.
I assumed nothing.
I asked 2 questions.

You said "So don't these people listen to the financial advice they're given and proceed regardless? Or are some advisors giving poor advice?" which certainly to me reads as implying that it can never be good advice to take out a lifetime mortgage

Pollycat

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

DullGreyGuy said:

Pollycat said:

OK.
Maybe it would have been better if you had put it like that in the first place.

I can't understand why anyone would take such a big financial decision like equity release without taking independent advice.

This site, which is non-advisory, recommends non-advisory providers of loans in excess of the amount of the lifetime mortgage the OP's parents took. Not many are going to go to an advisor for £40k loans this site promotes. 

Even with regular mortgages 40% of people buy without any form of broker and not all the brokers the other 60% use are advisory. 

The reality of direct sales, telephone/internet applications etc is that people think advice is expensive and doesn't add value. Unfortunately many of these are also the people that click the "I agree" button to 10 pages of T&Cs without reading any of them. 

So...
Caveat emptor.
Your money.
Your responsibility to look after it.
Or not if you can't be bothered to read what you're signing up to.

Yes and no... if you cannot be bothered to read what you are agreeing to then certainly you should accept the responsibility for that.

There are however some very complex financial products out there and there is probably good reason why they aren't available for people to buy on confused.com, and some not even via advisors. 

LTMs are complex from an underwriting perspective as you are balancing longevity risk against property prices and interest rates but from a consumer side they're not much more complex than a traditional mortgage

But equity release is available to buy via Google or one of the TV ads.

You're able to start the process via Google but you will have to talk to an advisor.

Pollycat said:
So don't these people listen to the financial advice they're given and proceed regardless?

Or are some advisors giving poor advice?

Why do you assume that a financial advisor would never recommend a lifetime mortgage? Were that the case you'd expect the regulators to not allow the product. 

As mentioned here, those that hate the product are typically the kids expecting a juicy inheritance from their parents who are disappointed when they find its less than they assumed. For the debtor most get what they wanted which is a substantial sum of money, no repayments and being able to continue to live in their home for as long as they want. 

If you read my later post you'll see I agreed with user1977 regarding the requirement for financial advice.
And even posted a link to the MSE article that stated that.

There is no assumption in my post you quoted.
I assumed nothing.
I asked 2 questions.

You said "So don't these people listen to the financial advice they're given and proceed regardless? Or are some advisors giving poor advice?" which certainly to me reads as implying that it can never be good advice to take out a lifetime mortgage

You are reading something that isn't there.