Lifetime Mortgage

robatwork · 20 April 2018 at 10:21PM

Onlooker wrote: »

If someone decides to take out a Lifetime Mortgage of £40,000 at an interest rate of 4.5% their debt will grow to almost £85,000 in 17 years.Imagine that.This is only one of many variations of.amounts borrowed and compounding interest being charged.
Now that the providers have got Carol on board ,imagine that,you will be able to have your calculations double checked before making any decision.Imagine that.

Consider that you've managed to get "Imagine that" 3 times into your latest rambling.

You do have some valuable information but it's a bit lost in your patronising tone.

ianatkis · 21 April 2018 at 2:59PM

I'm a mortgage broker and have been for over 25 years now. So I've seen the Equity Release Products evolve over time. The issue 20 years ago was that interest rates were high which meant that the amount you borrowed doubled in 5 years. Rates are much lower now and products more flexible. Even if you didn't pay any interest back then it can take 17 or 18 years for the debt to double now.

On top of that the products are much better. Take the new L & G product that is a lifetime mortgage and allows you to service the interest completely, or in part.

Modern products also allow you a drawdown facility. So you can take the smallest amount you can manage initially, in the knowledge that if you need more money later it is available. This is always best advice, as it reduces the compounding effect of the interest being charged.

Lifetime Mortgages are not for everyone, but you certainly shouldn't just assume that they are not suitable for you, without first talking to a knowledgeable broker who will talk you through the different products honestly and impartially.

robatwork · 22 April 2018 at 9:40AM

ianatkis wrote: »

Lifetime Mortgages are not for everyone, but you certainly shouldn't just assume that they are not suitable for you, without first talking to a knowledgeable broker who will talk you through the different products honestly and impartially.

Ian you could get people to sign in their own blood that they FULLY understand that they or their estate will have to pay the balance, and they or their inheritors will still complain they were mis-sold.

I'm afraid head-in-the-sand syndrome is in the nature of the beast.

Whenever this is discussed on shows like R4's Money Show they never actually ask the children what the money was spent on, or if it provided a nice extension, a world cruise, nice car, life-saving surgery etc. Focus is always, unfairly, on how the parents were duped into it all.

Onlooker · 23 April 2018 at 6:38PM

Maybe I was mislead by 4 consectuative days adverts by a provider user the term Imagine That plus Carol joining in to point out the benefits of Lifetime Mortgages .At a risk of being condemned the same space is not taken up with simplified detail to help those who face challenges when it comes to managing money.Repeat,a bill is going through Parliament designed to protect people with different levels of financial capability.It is called the S.F.G.B.Consider

robatwork · 23 April 2018 at 8:46PM

Hmm I guess you mean Carol Vorderman.... so she's fronting Sun Life

https://www.mortgagefinancegazette.com/lending-news/equity-release/carol-vorderman-fronts-sun-lifes-entry-equity-release-space-20-03-2018/

Looks like she has been in some hot water previously "persuading" older people to part with their cash

http://www.thisismoney.co.uk/money/cardsloans/article-1598479/Vorderman-slammed-over-TV-ads.html

Onlooker · 28 April 2018 at 6:17PM

2006 is as far back as I can find with any information with regard to Ms.Voderman being involved with,what shall I say unfortunate advertising, secured loans which were described as being more advantagious to the lender than the borrower.
She is good with figures as been proved many times ,maybe she can agree these.figures.
A full page ad.in a national newspaper costs approx.£30,000.Twice a week costs £60,000
Per year the cost is £3.12million Thats a lot of money of raise from the man in the street.Consider

Onlooker · 4 May 2018 at 5:31PM

One of the pieces of advice given to people considering taking out a Lifetime Mortgage is the suggestion that they can take up the option of paying the interest as they go.That could cost maybe £50.00 plus per week dependant on the amount borrowed and the interest charged.
At sometime in the future borrowers maybe not able to raise these monies so said Mortgage will start to charge the compounding interest for the next unknown number of years
If anyone is not happy with being in that position they could opt out of the Mortgage subject to having to pay the loan in full plus a early repayment charge of around 25% of the orginal loan.
An answer could be take a normal loan at the same costing and then you will be able to put off
getting involved in the intricities of a Lifetime Mortgage till much later in your life which is an
another recommend.Consider

ACG · 5 May 2018 at 7:41AM

Onlooker wrote: »

At sometime in the future borrowers maybe not able to raise these monies so said Mortgage will start to charge the compounding interest for the next unknown number of years

Where as if the customer had a "normal" interest only mortgage and could not repay the Mortgage, what would happen then?

Arrears?
Have to sell up?
Get evicted?

As I have stated all along in this forum, Equity release is not for everyone. But you seem to have a very blinkered view.

Onlooker · 8 May 2018 at 8:36PM

Every Lifetime Mortgage provider requires that all borrowers have to initially payoff any outstanding mortgage before any other monies are released from their property.I imagine that in some of the cases listed this could be impossible unfortunately for them.Those in a position to go forward should still be aware of their future committments.I have seen two of the leading providers curtail their paper postings lately with regard to the always misleading statement i.e You will always own 100% of your own home which was never true because of the legal charge made.Have these changes been made because of some pressure from the Financial Conduct Authority?To work out what Age Partnership meant in their original advertisement would take some doing

Downsizer · 12 May 2018 at 4:29PM

To downsize can be costly as was mentioned but if done wisely will be a cheaper option than getting committed in the rest of your lifetime to the growing debt a Lifetime Mortgage will bring..There will be legal fees of course ,stamp duty £5000 on a £300,000 property all paid for on whatever deal you have completed.Taking the option of a Lifetime Mortgage will have initial costs dependant on the amount you raise.Legal charges which will be charged should you decide to opt even after 12 months and of course the ever increasing debt incurred against your property with a unknown time limit on it.We raised our lump sum in a few months and would recommend to all.

Lifetime Mortgage

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