Lifetime Mortgage

Onlooker · 19 February 2018 at 2:07PM

A half page advert on a national newspaper regarding Equity Release needs some clarification.Apart from other statements is says maintain 100% homeownership with an asterisk.At the bottom it says to own your own home ownership you must take out a Lifetime Mortgage.One doesnt happen without the other.As a legal charge will be applied against anyones property then your equity in your property will of course diminish to some figure below 100%.
They also put in a minimum fee charge of £1495.00,up £100.00 from previous adverts ,which is the equivilant of borrowing almost £75,000 @ 1.95%.If these conclusions are wrong then they are open to correction.

Onlooker · 27 February 2018 at 3:20PM

One of the serious aspects of taking up a Lifetime Mortgage is how long will anyones involment be and what are the consequences.
The vast majority of said mortgages will be taken out by couples through joint ownership of their property.The fact that one person will pass away before the other should be taken into account.The survivor will be left to contend with ,beside other financial difficulties,the ever increasing affect of the increasing debt against the equity in their property.
They may have reached a point where to sell and move on to a smaller property but the loan could have
reached proportions whereby they would be insufficient funds to take up this option plus having to pay the early release charge.The timescale cannot be guaranteed but the risk will be there.

John-K_3 · 27 February 2018 at 8:09PM

May I ask why you!!!8217;re posting pretty much the same thing over and over? I think that just about everyone understands the deal with lifetime mortgages. I get that you do not, but why the repeated posts?

AnotherJoe · 27 February 2018 at 9:15PM

I would guess the OPs parents took one out and and deprived him of his inheritance.

robatwork · 28 February 2018 at 11:35AM

Looks like a bot copy-pasting

Onlooker · 9 March 2018 at 6:41PM

A repeat advertisement in a national newspaper uses the headline £85,000 as a further temptation to people to enter the Lifetime Mortgage market.Again it shows not enough insight as to what the future
consequences would be to anyones estate
This figure is premise to opening discussions with people who may or may not want to borrow more than £10,000a but you will be offered up to 8 times more.This is the drawdown factor which gives you leave to freely go back for more.
Get written figures to show what your indebtness for every borrowing over a 5,10 or even a 20 year period and consider the costs when your plan ends.There are alternatives.

John-K_3 · 10 March 2018 at 10:10AM

Again, you have not had the courtesy of answering questions, but are just spamming the forum with nonsense.

Post reported.

Downsizer · 15 March 2018 at 6:18PM

Downsizing is in our opinion the better option to getting involved in the committments of the intricuites of a Lifetime of concerns created for some by opting to borrow monies that way.
Of course taking the option of moving home evokes a great deal of emotions but should still be considered from a financial point of view.From a practical point of view the same outcome ,i.e.raising monies without being in a lifetime increasing debt ,would be a better option.
We did it ,a new cheaper home to suit in more ways than one and at in most cases with no more initial costings and a nice lump sum to spend.
Be practical.make yourselves some money.

Onlooker · 20 March 2018 at 1:24PM

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.

worid · 20 March 2018 at 2:16PM

Ok a lifetime mortgage is equity release but an interest only lifetime mortgage may help those who are on an interest only mortgage whose time is running out. The interest rates appear to have fallen quite a bit since I last looked at this in 2014 and it appears that some banks are now offering it if their clients interest only mortgage has ended.

I have a repayment mortgage which will not end until February 2025 when I will be nearly 76. I am tempted to get an interest only lifetime mortgage wherby I borrow enough to pay off my existing mortgage which is less than 15% value of the house and pay the full interest owing each month. Then when I die all I will owe is the original amount borrowed.

I have been in touch with Step Change and if anyone has any dealing with them I would be grateful for your input. They do not charge for advice and are salaried so apparently do not push for certain products but only those that suit your personal circumstances.

The reason I am considering it is because although I can just about manage I have no money at the end of the month and no savings and I am a fairly frugal person. Which means entertainment is very limited and holidays are out of the question.

I have a 5 year fixed interest rate which ends in 2 years at 2.99%. Then will need to negotiate the remaining 5 years.

It all depends on the rate of interest and the repayments each month some quotes are 3.98% but if there is no considerable difference I will not go ahead.

There are also upfront costs like a surveyor and solicitors fees and arrangement fees which would probably amount to a £1,000 - so quite a big mistake to make if it doesn't work out.

If anyone has considered or taken this step I would be grateful for your input.

It would be difficult to downsize as at lower end of the market.
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Lifetime Mortgage

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