Lifetime Mortgage

Onlooker · 15 May 2018 at 9:06PM

The Post Office are advertising what they are calling Family Link Mortgages.The clue is in the name.To help 1st.time buyers onto the property ladder they will lend to both the buyer and their families the equivilant of 100% of the property in question.A £200,000 property would have a £180,000 mortgage raised against it at a competive rate for the 1st.time buyer.A £20,000 loan interest free over 5 years would taken out as a deposit if required against the property of the buyers family.
This could be a good alternative for families who want to help their children without taking out a Lifetime Mortgage and thereby diminishing their future inheritance A £500,000 ceiling is in place.Consider

Onlooker · 20 May 2018 at 7:51PM

We took out a Lifetime Mortgage 9 years ago with one of the leading providers.We purchased a car for £9500.00 with part of the loan.The consequenses of just that part of our actions show what a mistake we made..The car itself is now 10 years old and worth maybe £2000.00 Compounding interest of 6% placed against the said part of the loan means we owe £16050.00 on it now .A figure which will increase by a 4 figure sum annually long after the car become worthless.Whatever sum is taken will grow in the same pattern.
Get say 5 year forecasts before committing to the next 15/20 years of your lifetime.Consider

robatwork · 22 May 2018 at 12:01PM

But perhaps without that car your life would have been intolerable for the last 9 years. Perhaps you would have missed hospital appointments and seeing your children and grandchildren. Perhaps your life has been immeasurably enhanced over the last 9 years as a result of having the car and having taken out the lifetime mortgage. Perhaps you wouldn't have lasted the 9 years had you not taken it out. Perhaps your inheritors understand this. Not so black and white. Consider.

AnotherJoe · 22 May 2018 at 12:13PM

robatwork wrote: »

But perhaps without that car your life would have been intolerable for the last 9 years. Perhaps you would have missed hospital appointments and seeing your children and grandchildren. Perhaps your life has been immeasurably enhanced over the last 9 years as a result of having the car and having taken out the lifetime mortgage. Perhaps you wouldn't have lasted the 9 years had you not taken it out. Perhaps your inheritors understand this. Not so black and white. Consider.

Good points, i expect the hospital appointments were to see about having the chip on his shoulder removed.

veesharp · 22 May 2018 at 12:43PM

Sorry to hear of your issues... I’m presently looking at a newer lifetime mortgage plan on the market this last couple months (OPLM) to pay off my IO mortgage and free up some equity from my property. (Not sure whether I can quote the company?) I intend to continue paying interest that I’m used to paying and can choose to over pay up to 10% as and when. This is so my daughter still has inheritance when I leave this planet, ( but not if I go into a home!). She may also choose to pay towards the interest... however if I choose to stop paying, the interest owed soon racks up. There’s protection against going into negative equity. Seems like a great deal to me as I want quality of life now instead of continuing to live in poverty... my daughter agrees. I’m considering it from all angles before I go ahead and if anyone has any advice, please let me know.

AnotherJoe · 23 May 2018 at 9:12AM

veesharp wrote: »

Sorry to hear of your issues... I!!!8217;m presently looking at a newer lifetime mortgage plan on the market this last couple months (OPLM) to pay off my IO mortgage and free up some equity from my property. (Not sure whether I can quote the company?) I intend to continue paying interest that I!!!8217;m used to paying and can choose to over pay up to 10% as and when. This is so my daughter still has inheritance when I leave this planet, ( but not if I go into a home!). She may also choose to pay towards the interest... however if I choose to stop paying, the interest owed soon racks up. There!!!8217;s protection against going into negative equity. Seems like a great deal to me as I want quality of life now instead of continuing to live in poverty... my daughter agrees. I!!!8217;m considering it from all angles before I go ahead and if anyone has any advice, please let me know.

I dont see the point of protecting against negative equity, all you are protecting is their risk, not yours, because if you die with nothing, they cant reclaim the debt anyway

Other than that seems like a plan, why live in poverty so your daughter can inherit on the back of that years later. She also can choose whether to pay the interest and thus protect her inheritance (if she does that it should be done as documented loans to you rather than direct to the company, so she can reclaim it should the house need to be sold to pay for care)

What about a significant downsize instead though?

ACG · 23 May 2018 at 9:45AM

Onlooker wrote: »

We took out a Lifetime Mortgage 9 years ago with one of the leading providers.We purchased a car for £9500.00 with part of the loan.The consequenses of just that part of our actions show what a mistake we made..The car itself is now 10 years old and worth maybe £2000.00 Compounding interest of 6% placed against the said part of the loan means we owe £16050.00 on it now .A figure which will increase by a 4 figure sum annually long after the car become worthless.Whatever sum is taken will grow in the same pattern.

If you had taken out regular mortgage (assuming one was available). £9500 over 9 years at 6% interest, you would have paid £115 a month.

It is pretty clear you made a mistake in choosing the wrong product - going off your posts.

That does not mean all Lifetime mortgages are wrong.

Taking out a bridging loan to buy a house you want to keep for 20 years is also the wrong product for the job.

Taking out a regular Mortgage for a property you plan on renovating and selling in 6 months is the wrong product for the job

Using a fork to eat soup is the wrong item for the job.

There is no swiss army Mortgage that will do everything. It is a case of choosing the right one for the job. If you got it wrong, you got it wrong, life is full of mistakes. Reading all of your posts on this thread is one of mine.

You made a mistake, you can either moan about it forever and a day, you can try to fix it or you can just make the best of a bad situation.

But hey ho, ignore another valid post and make another daft update about how bad lifetime Mortgages are with your blinkered views.

robatwork · 23 May 2018 at 1:06PM

ACG wrote: »

There is no swiss army Mortgage that will do everything. It is a case of choosing the right one for the job. If you got it wrong, you got it wrong, life is full of mistakes. Reading all of your posts on this thread is one of mine.

Heh you just know that like picking at a scab, it's wrong but you're going to read the next one. I find reading it like a Kipling poem helps.

kingstreet · 23 May 2018 at 1:13PM

We should try to guess which one is going to be next, Onlooker or Downsizer...

Onlooker · 24 May 2018 at 10:13AM

Looking at the posts not receiving replies.Where it was pointed out that over £30million is spent anually
by the Equity Release industry alone on their product.Information with regard to the bill going through Parliament as we speak i.e the Single Financial Aid Body being set up to protect those who are less understanding of the claims made .Also the fact that The Post Office backed by the Bank of Ireland have set up what is called a Family Line Mortgage which for some if not many wqould be a good alternative to Limetime Mortgages ,one of many alternatives I suspect will arise in the near future .Consider

Lifetime Mortgage

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