Lifetime Mortgage

Dandytf · 20 March 2018 at 3:57PM

Onlooker wrote: »

Understanding the intricaties of Equity Release is not easy to understand by many people.To maybe help you could helped a great deal if you looked into a programme on BBC Iplayer .It is a series entitled Holding Back The Years.Series 2 Episode 1 shown on Monday 12th.March deals with Equity Release and in particular Lifetime Mortgages.Watch the real life cases and listen to the advise provided by a Financial Expert.
You may be able with more understanding of what you will be committing in your undetermined future and make the right decision.

Thanks I'm 45 yrs -thinking ahead from 55 yrs.
Since watching the recommended episode via ipadpro/bbciplayer.
Seems the sensible advice is DON'T consider equity release at least until 70's+ or RISK owing upto the total value of your home.
Though there was a positive example on helping family +nice20k home improvements loan for the homeowner.
I don't think equity release is ever going to be a simple decision.
If the good times return-there's nasty companies will be in overdrive mode for product sales -no doubt.
I did up until watching that prog' maybe thought from 55 equity release could be better than unsecured loan-now I don't want to go near equity release.
Simple question-What does a single person do with equity if happy living at home alone.

John-K_3 · 20 March 2018 at 8:12PM

Onlooker wrote: »

Understanding the intricaties of Equity Release is not easy to understand by many people.To maybe help you could helped a great deal if you looked into a programme on BBC Iplayer .It is a series entitled Holding Back The Years.Series 2 Episode 1 shown on Monday 12th.March deals with Equity Release and in particular Lifetime Mortgages.Watch the real life cases and listen to the advise provided by a Financial Expert.
You may be able with more understanding of what you will be committing in your undetermined future and make the right decision.

This is not even coherent English at this point, let alone a coherent argument.

Equity release is not intricate. It is not comp,ex, it is not confusing, it is a simple product that suite some and does not suit others.

The main problem seems to be that it lets people spend some of their own money which upsets those family members who expected a fat inheritance.

Onlooker · 24 March 2018 at 12:25PM

The programme on BBC1 regarding Lifetime Mortgages included evidence of the experiences of two ladies.Helen borrwed £32,000 six years ago when 62 yearsold.Her annual statement shosw her now owing£49,000,perhaps including a 25% early leaving escape chargeHer feelings are now expressed.She feels now that she has nothing to look forward to except; depending on her liftime,losing most of her childrens inheritance.
The other lady raied £80,000 from her £205,000 property to give £60,000 to her son as a deposit.
Good but the backlash will be that his inheritance i.e her home will have a charge of at least £158000
against it in about 14 years and about £212,000 in about 20years dependant on the compounding interest rate charged.
The financial advisor appearing on this programme suggested if people want to enter this market they should leave it to 70 years plus Earlier than that could have them trapped in their own home because the charge against their property would not leave enough revenue to sell up and move on.Consider

ACG · 24 March 2018 at 12:42PM

Onlooker, what you are missing/ignoring is that people are getting huge lump sums of money and then not paying anything for years.

People who take out equity release mortgages are 100% aware of what will happen to their mortgage balance (at least now a days). The image below is an example of what appears in the illustration (prior to signing up) and offer (after signing up). If they do not understand this, then they have not read the paperwork or should ask their advisor. Just to add, I do not do equity release so have no vested interest in this.

Yes there is a near £30k increase in 10 years, but proprty prices usually go up also and even if not, you can not really argue that it is not clear.

Onlooker · 2 April 2018 at 8:29PM

People of a certain age always say that they understand.It is a pride thing which can be very costly if they get involved with the intricities of Equity Release.They could like us or the lady on TVs Holding Back the Years realise the trap that they have fallen into before it becomes to costly to buy yourself out.
A £60,000 loan at 4.6% will reach £121,758.00 in approx.18 years.Thats a 100% increase and will always carry on at a add on of over £5000 per year till the end.It might suit some but not 100% of people.
Consider an alternative,even the industry suggests you could get a part-time job.

Onlooker · 9 April 2018 at 5:15PM

No money worries-imagine that.Imagine that you dont check very carefully on your future worries with regard to what you will have to pay back .How much an effect it will have on your estate and maybe your famillies inheritance.You could pay back double or even triple your borrowimgs depending on the length of you and your partners lifetime.Imagine that..What you will be entering into will affect everything you do finanically for maybe up to 30 years.Imagine that. Consider

Edi81 · 9 April 2018 at 9:08PM

Onlooker you sound like a broken record.
Equity release is not for everyone but those that take it out need to be aware of the implications.
End of story!

John-K_3 · 9 April 2018 at 9:31PM

Onlooker wrote: »

No money worries-imagine that.Imagine that you dont check very carefully on your future worries with regard to what you will have to pay back .How much an effect it will have on your estate and maybe your famillies inheritance.You could pay back double or even triple your borrowimgs depending on the length of you and your partners lifetime.Imagine that..What you will be entering into will affect everything you do finanically for maybe up to 30 years.Imagine that. Consider

Your posts are becoming incoherent. Do you actually know what you are trying to write at this point, or what you are trying to get across?

These are simple products, and it is impossible not to understand the consequences. How can anyone, with a straight face, claim that they do not understand how interest works?

Onlooker · 14 April 2018 at 6:37PM

There is a bill going through Parliament at the moment and due to come into force next year.One of the main objectives is to give more protection to what they call people who face challenges when it comes to managing their finances.Levels of financial capability is their wording.
To help the general public a new statutory body is to be set up combining the present Money Advice Service,The Pension Advisory Service and Pension Wise all to be overseen by the Financial Conduct AuthorityIt is to be called the Single Financial Guidance Body.S.F.G.B.
A telephone/webchat service will be provided plus face to face support..
Advice on Equity Release ,Pensions borrowings of all types to be covered
Could be worth waiting for before making decisions on anyones financial future.Consider

Onlooker · 19 April 2018 at 6:00PM

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.

Lifetime Mortgage

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