Lifetime Mortgage

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  • veesharp
    veesharp Posts: 16 Forumite
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    AnotherJoe wrote: »
    I dont see the point of protecting against negative equity, all you are protecting is their risk, not yours, because if you die with nothing, they cant reclaim the debt anyway

    Other than that seems like a plan, why live in poverty so your daughter can inherit on the back of that years later. She also can choose whether to pay the interest and thus protect her inheritance (if she does that it should be done as documented loans to you rather than direct to the company, so she can reclaim it should the house need to be sold to pay for care)

    What about a significant downsize instead though?



    Really appreciate your reply...advice about my daughter paying interest as loans is a great idea, thank you!

    Significant downsize best option all round assuming I can find somewhere suitable (not happened as yet hence this option).
  • Onlooker
    Onlooker Posts: 145 Forumite
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    Talking of Myths 1 You no longer own your own home Except it will have a legal charge of any figure up to 100% against it which will have to be repaid upon you leaving.Myth 2 There will be a no negative equity guarantee..Therefore if you owe up to 99% of your homes value you can keep the rest when you payup and leave.Myth 3 is not a myth as the adverts say the first thing you must do is borrow enough to pay off any outstanding mortgage attached to your property and then begin to pay interest on that plus whatever other borrowings you may make thus greatly reducing your estate and any inheritance when you leave.Consider
  • veesharp
    veesharp Posts: 16 Forumite
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    Onlooker wrote: »
    Looking at the posts not receiving replies.Where it was pointed out that over £30million is spent anually
    by the Equity Release industry alone on their product.Information with regard to the bill going through Parliament as we speak i.e the Single Financial Aid Body being set up to protect those who are less understanding of the claims made .Also the fact that The Post Office backed by the Bank of Ireland have set up what is called a Family Line Mortgage which for some if not many wqould be a good alternative to Limetime Mortgages ,one of many alternatives I suspect will arise in the near future .Consider

    I will watch out for the SFAB. And look into the P.O. FLM
    Thank you
  • veesharp
    veesharp Posts: 16 Forumite
    edited 29 May 2018 at 7:01PM
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    Onlooker wrote: »
    Talking of Myths 1 You no longer own your own home Except it will have a legal charge of any figure up to 100% against it which will have to be repaid upon you leaving.Myth 2 There will be a no negative equity guarantee..Therefore if you owe up to 99% of your homes value you can keep the rest when you payup and leave.Myth 3 is not a myth as the adverts say the first thing you must do is borrow enough to pay off any outstanding mortgage attached to your property and then begin to pay interest on that plus whatever other borrowings you may make thus greatly reducing your estate and any inheritance when you leave.Consider

    Ok... so 1. If I borrow just enough to pay off my IO mortgage but continue to pay the interest, isn!!!8217;t this like continuing an IO mortgage albeit at a higher interest rate?
    2. If I owe 20% of my homes value when I die 80% goes to my family right?
    3. Yes. Already fully understood. What you suggest is worst case scenario.

    I am considering all these points and tbh my only worry is if I want to sell up, retire and go and live in a field for the rest of my life! Wouldn!!!8217;t be able to......
  • Onlooker
    Onlooker Posts: 145 Forumite
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    The Saga of the car .As asfore stated it is as if the brakes wont ever work.We spent £9500.00 ,part of the Equity Release @6.00% compounding interest .On this part of the loan we now owe £16050.05 and in 5 years hence the debt will rise to £21478.59 .It wont stop until we leave or find 25% of the original loan plus interest.What car?Consider
  • Onlooker
    Onlooker Posts: 145 Forumite
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    Picked up a newspaper Monday morning,opened it up only to find I had paid for two and a half full pages of advertising for Lifetime Mortgages.At what cost I wonder,probably in the the region of £80,000.00 just for one day.Who will be paying that annual bill of over 3 million pounds?
    Whilst on line I am having trouble with squirrels eating my nuts so clicked onto a help site,I noticed that Saga,you know they who help the older generation ,for help,which I got.Then I noticed as an aside that they where offering Equity Relief.What?Lets hope that they are more informative to people of lesser financial understanding than othersJust saying...Consider
  • qwert_yuiop
    qwert_yuiop Posts: 3,615 Forumite
    First Anniversary First Post
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    TrickyDicky101 wrote: »
    I hadn't heard of the 'rule of 72' before - that's a nice simple yardstick :D

    There are also more (and probably better or at least more flexible) equity release products around now that can allow payment of monthly interest so the debt doesn't increase. No consolation to you now of course.

    It's more accurate if you use 69 rather than 72, and better still with 69.3. Although admittedly less convenient for mental arithmetic.
    “What means that trump?” Timon of Athens by William Shakespeare
  • ACG
    ACG Posts: 23,762 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
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    Onlooker wrote: »
    Picked up a newspaper Monday morning,opened it up only to find I had paid for two and a half full pages of advertising for Lifetime Mortgages.
    Which paper? I might take out some advertising.
    I always assumed it was the companies advertising who paid for the advertising, if you are now telling me it is free and the buyer of the paper pays for it, it seems like a no brainer.

    You seem like a gas half empty kinda guy.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Onlooker
    Onlooker Posts: 145 Forumite
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    Talking of advertising we noticed than instead of spending the usual large amount on a full page Lifetime Mortgage advert one of the leading advocates opted for paying for about 10% of a page,top left hand corner.Why?
    It must be said that it did contain information on the most relevant parts of taking out a Lifetime Mortgage, Copy is.


    A lifetime mortgage is a loan secured against your
    home.Equity Release will reduce the value of your

    estate and may effect your entitlement to means

    tested benefits.Think carefully before securing a

    loan against your home.


    Consider.
  • veesharp
    veesharp Posts: 16 Forumite
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    ACG wrote: »
    Which paper? I might take out some advertising.
    I always assumed it was the companies advertising who paid for the advertising, if you are now telling me it is free and the buyer of the paper pays for it, it seems like a no brainer.

    You seem like a gas half empty kinda guy.

    Haha love it!!
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