Equity Release guide discussion

missile wrote: »

I am thinking this is a good option for us too. Need to do some research to decide which option and with which provider is best.

I have been researching this option for over a year now. 2 friends and a neighbour have done it.. and are happy that they did. I have had details from a couple of companies.. so far the one that is giving the best start up costs and the one that I get the best overall impression with is one company with whom I had a meeting with an IFA with last week. She does not charge a fee.. she gets her commission from the company she is dealing with (large well known in wealth management) and the overall cost to me will be around £800 for the solicitor and then whatever the arrangement fee is for the company, which you would pay an arrangement fee if you were setting up any kind of mortgage..and the property valuation fee. But the other company I had an appt with.. the start up costs were working out at well over £2.5k.. because the IFA wanted £1100 plus VAT. The solicitors he uses were slightly cheaper than the last one by about £150 .. but something that is worth noting for you, if you use their solicitors they put you in touch with, it is preferential to your own as they will charge you if you did not go ahead with the plan.. whereas the equity release specialist legal bods don't. So it may be a bit cheaper with your personal ones but only if you go full steam ahead! Worth ringing around though to see what they will and won't do for you. They do advise you to have a word with your own personal solicitor if you have one anyway.

You will also need an up to date will and they recommend you set up a Lasting Power of Attorney if you have not got one ..and severely not single .. so that if you have 2 nominees .. ie a son and daughter for example, both do not have to sign for things.. although the house cannot be sold by one of them, that has to be both.

I would avoid certain companies just due to the upfront costs. I am happy to share the one I have used recently if you want to try them.. dependent on where you live of course.. but they are a nationwide company so I am sure they will have someone else to come and see you. I am not rushing into this.. it is far too important to go gung ho into and they respect that.. anyone who pressurises you, is not worth bothering with. So send me a private message if you want the info,.

I have friends who have an interest only mortgage which will need paying off in 5 years and they dearly want to stay where they are.. so they are thinking about taking it out too to repay their mortgage so that they can stay put.

Good luck! :-)

missile wrote: »

I don't trust IFAs, crooks in suits my wife calls them. You might be cheaper / better going to a mortgage advisor?


There are quite a few options to consider, I am leaning toward a simple re-mortgage for a fixed term at a fixed rate.

Both the ones I have seen have been very well recommended by people I know well.. so I will stick with them and ultimately one of them.. they will then look for the best options for me.. but yes you have to go with your gut instinct too... and if IFA's are not your thing.. then do it another way.. I did find a really helpful neutral help guide last year.. if I can find it again, I will send it to you.. I can't remortgage as my income is not enough to go down that route... I am mortgage free at the moment and so the thought of having another debt hanging over my head was why I have not made a decision about this yet! I am mulling it over and looking at all options/angles. My kids are not looking at me to be a meal ticket.. they want me to live my life and enjoy it so really there is nothing stopping me except some little niggle about not wanting to owe anyone anything!

missile wrote: »

Your IFA seems to be making it unnecessarily complicated. I don't trust IFAs, crooks in suits my wife calls them. You might be cheaper / better going to a mortgage advisor?

There are quite a few options to consider, I am leaning toward a simple re-mortgage for a fixed term at a fixed rate.

It appears you have PM turned off?

Sorted out the PM.. :-)

Keep_pedalling wrote: »

As you have mentioned an IFA earning commission then you are not talking to an IFA, as they have not been allowed to be commission based since 2012.

Well I am calling them IFA's.. maybe that is not what they are called.. to me that is what they are in rough terminology. :-) There is probably another title for them. I don't have their business cards to hand to double check. I use the term 'commission' loosely.. this may just be the fee they would get per se.. both are self employed but work for specific equity release specialist brokers who then contract other large companies in the field.... both these brokers are well known in these aspects. I have done some homework.. but anyway thanks for highlighting that and at least if I don't know what their actual title is, I will refrain from calling them IFA's.. :-)

hj711 wrote: »

Sorted out the PM.. :-)

I sent you a PM :money: