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psycho89
Posts: 15 Forumite
Until recently I can't remember seeing much on 'Equity Release'.
Now, on daytime TV and social media, there seem to be a number of players offering to advise and/or provide.
On the site I can only find an item written by Martin in 2010.
I think it would be helpful for an update on this.
These advisors don't spend on advertising etc unless there's money to be made.
In addition, as a pessimist, I fear the start of another debacle along the lines of PPI!
Now, on daytime TV and social media, there seem to be a number of players offering to advise and/or provide.
On the site I can only find an item written by Martin in 2010.
I think it would be helpful for an update on this.
These advisors don't spend on advertising etc unless there's money to be made.
In addition, as a pessimist, I fear the start of another debacle along the lines of PPI!
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Comments
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Until recently I can't remember seeing much on 'Equity Release'.
Now, on daytime TV and social media, there seem to be a number of players offering to advise and/or provide.
On the site I can only find an item written by Martin in 2010.
I think it would be helpful for an update on this.
These advisors don't spend on advertising etc unless there's money to be made.
In addition, as a pessimist, I fear the start of another debacle along the lines of PPI!
I think there has already been one ''PPI - style'' fuss about equity release, in the past?
Yes, it seems that high asset prices have resulted in most of the country's 'wealth' being locked into high house prices - so equity release is back on the agenda.
I'm not sure how this will play out regarding care home fees. Can't see the govt being too happy about large amounts of money been given away (eg to younger relatives), prior to care home assessments being needed...Selling off the UK's gold reserves at USD 276 per ounce was a really good idea, which I will not citicise in any way.0 -
What version of Google are you using? You should get it updated because the article I found says: Updated 1 June 2018....
https://www.moneysavingexpert.com/mortgages/equity-release/
there is even a whole forum for discussing it started on 26 June 2018 :
https://forums.moneysavingexpert.com/showthread.php?p=74455284&_ga=2.7239477.605436460.1533967828-1746307785.1533967828
not forgetting that lots of others besides "Martin" (who is now just a face on here since he sold the site ages ago) provide guides that are just as informative:
https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs65_equity_release_fcs.pdf
https://www.moneyadviceservice.org.uk/en/articles/equity-release
https://www.which.co.uk/money/pensions-and-retirement/youre-retired-working-on-benefits-equity-release/equity-release/what-is-equity-release-a5jqy4d36xlv
https://moneyfacts.co.uk/guides/retirement/guide-to-equity-release-may-2012/0 -
It looks as though there will be additional legislation coming around equity release.
https://www.telegraph.co.uk/business/2018/09/02/equity-release-specialist-just-threatened-crackdown/
I must admit I particularly dislike the term equity release. It makes it sound as though you have a bird trapped in your house and they are going to open the door and let it soar free.
You aren't 'releasing' anything. You're taking a loan / a substantial debt / giving a mortgage and using what may well be your only substantial asset as security.0 -
It looks as though there will be additional legislation coming around equity release.
https://www.telegraph.co.uk/business/2018/09/02/equity-release-specialist-just-threatened-crackdown/
I must admit I particularly dislike the term equity release. It makes it sound as though you have a bird trapped in your house and they are going to open the door and let it soar free.
You aren't 'releasing' anything. You're taking a loan / a substantial debt / giving a mortgage and using what may well be your only substantial asset as security.
It is a confusing term.
A few years ago, I remember some companies offering to buy your house and ''rent'' (ie let) it back to you. This wasn't aimed at elderly retired, more people in financial problems. There was some concern about these firms. Haven't seen much about that recently, maybe due to ZIRP and QE reducing their market? Or maybe the regulators hassled them out of business?
So what's the alternative for retired folk, living in a valuable house, but little cash to spend?
Maybe sell the house, buy an annuity and rent somewhere? That won't be popular (but buying an annuity would probably not be classed as 'deprivation of assets'?).
Hence 'equity release', for now. But I wouldn't be surprised if the govt don't clamp down on it, if it starts to reduce social care cost contributions...Selling off the UK's gold reserves at USD 276 per ounce was a really good idea, which I will not citicise in any way.0 -
Thanks for your comments 'Computer Beginner'
Yes, it could well be used to avoid care home fees - another complication!0 -
Thanks for the links 00ec25 :T
Well, I just used the search box on the Moneysavingexpert.com website for 'equity release'.
I'm grateful for your search skills and will have to improve mine.0 -
Thanks Nebulous2
Interesting to see if legislation will follow..........0 -
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It looks as though there will be additional legislation coming around equity release.
https://www.telegraph.co.uk/business/2018/09/02/equity-release-specialist-just-threatened-crackdown/
I must admit I particularly dislike the term equity release. It makes it sound as though you have a bird trapped in your house and they are going to open the door and let it soar free.
You aren't 'releasing' anything. You're taking a loan / a substantial debt / giving a mortgage and using what may well be your only substantial asset as security.
Exactly. A house doesn`t store value, it is priced by the current appetite and availability of mortgage debt.0 -
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