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  • FIRST POST
    • Onlooker
    • By Onlooker 23rd Jun 17, 3:15 PM
    • 59Posts
    • 12Thanks
    Onlooker
    Lifetime Mortgage
    • #1
    • 23rd Jun 17, 3:15 PM
    Lifetime Mortgage 23rd Jun 17 at 3:15 PM
    We raised 45,000 with one of the leading providers 8 years ago but somehow failed to take notice of the future consequences of our actions on our property and the negative effect on our estate and family.
    After 8 years our initial loans increased due to added interesr to 65,580 .we have now been provided with figues
    that show after another 7 years our debt against our property will be 100,247 pounds and continue to increase
    at 5 to 6 thousnd pounds annually until it ends.
    We would advise famillies to obtain future estimates on their future consequences.
Page 7
    • kingstreet
    • By kingstreet 16th Jul 18, 9:40 AM
    • 34,101 Posts
    • 18,503 Thanks
    kingstreet
    There is no precedent on what constitutes "foreseeable need" but if a number of years have elapsed and health has deteriorated quickly, a claim for deprivation assets is less likely to succeed than a short time where there was an existing medical/health issue.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Onlooker
    • By Onlooker 20th Jul 18, 3:43 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    A side issue to the Equity Release market must be the depletion of gifting to charities by people whose estates have diminished a great deal because of their involvement in the Lifetime Mortgage market place,it must be millions of pounds.Esther Rantzens charity is one prime example of reliance of gifting to survive.One person has kindly offered to leave them £50,000 in her will .Wonderful but as stated many others will have to reduce their proportion or have not enough to give.
    Maybe as one provider has promised the whole industry should donate an annual amount from their profits to make up for this decline.Consider
    • Onlooker
    • By Onlooker 27th Jul 18, 11:34 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    Well advertised in the newspapers that mny houeholders have opted to give up a large part of their holding in their paid up property and thereby diminishing their estate in future years as well as the

    inheritance to their families
    The effect of raising £78,000 will have long term consequences on their financial futures.
    e.g If even after just 1 year at say 5% interest they decide against continueing their exit bill will be £101,400 because it will include an early exit penalty of 25% on all borrowings.Even so if their involvement continues for 10 years they will owe £127,053,or 15 years £162,156 or 20 years 206,957 all due the compounding interest being charged.Consider
    • Onlooker
    • By Onlooker 31st Jul 18, 2:02 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    With regard to the effect of rolled up,added on or its real name Compounding Interest the problem is that it is difficult to understand by many people and thereby lead some into the tangle of a Lifetime Mortgage.
    For example on a £78,000 borrowing 1st.year interest charged at say 5% would be £3900.00, year 10 would be £6050.16,year 15 would be £7721.73 year 20 would be £9855.11.
    As shown in previous examples almost £130,000.00 would be added to your borrowings and will have a great effect on the residue of your estate.Consider
    • Onlooker
    • By Onlooker 3rd Aug 18, 3:56 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    It appears that some people are mixing up the 7 year rule on Inheritance Tax (i.e.if you give assets away anytime before it can be taken into account for tax purposes etc)with Deliberate Deptrivation of Assets.
    There is no time limit on these actions.Local authorities are able to contest in court any case they judge to be guilty of same .Unfortunately true but can lead to long legal arguments to find one way or the other.
    Consider
    • Onlooker
    • By Onlooker 8th Aug 18, 4:28 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    With regard to the Deliberate Depletion of Assets debate we have found a website available to anyone who is also baffled with regard to this issue.If you are able look to April King Legal & Property for indepth seemingly unbiased opinion on this subject and others closely related to the Lifetime Mortgage market.
    The main problem is that those who do not have the facilities or know how to look up and understand are those who will finish up in a financial position that they did not require.Consider
    • Thrugelmir
    • By Thrugelmir 8th Aug 18, 4:36 PM
    • 59,767 Posts
    • 53,116 Thanks
    Thrugelmir
    It appears that some people are mixing up the 7 year rule on Inheritance Tax (i.e.if you give assets away anytime before it can be taken into account for tax purposes etc)with Deliberate Deptrivation of Assets.
    There is no time limit on these actions.Local authorities are able to contest in court any case they judge to be guilty of same .Unfortunately true but can lead to long legal arguments to find one way or the other.
    Consider
    Originally posted by Onlooker
    Nothing new. Has been the case for many years.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Onlooker
    • By Onlooker 14th Aug 18, 1:22 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    The latest advertisement regarding Equity Release and Lifetime Mortgages states that you will be baffled by its complexity then states it is as simple ABC once their salesman explains all .
    This will be one of the most difficult decisions to make and will affect your financial future for your lifetime.
    A Always request 5 year forward statements with regard to your ever rising debt in the future.
    B Baffled is an understatement when you will be faced 40 plus pages of documentation.
    C Consider outsider advice from at least your family and/or contributors who have no financial
    gain to make in your final,and it can be final,decision.
    • robatwork
    • By robatwork 15th Aug 18, 3:09 PM
    • 4,528 Posts
    • 5,072 Thanks
    robatwork
    What's going on with this thread? It was closed 2 days ago, now posts seem to have been removed (mine certainly), it's less coherent than previously, and now it's open again.
    • Onlooker
    • By Onlooker 18th Aug 18, 5:42 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    Many of the financial pages seem to be discussing the fact that a recession in property values could again be on the way.
    If it became the case then anybody with a Lifetime Mortgage would be hit.The loans taken out would still mount up at the same rate but the value in their property would reduce.
    This would cause a lessening in the gap of what you own and what you owe giving a smaller amount in anyones equity.
    The financial institutions have already factored in cover should recession occur but borrowers will have little recourse.Consider
    • Onlooker
    • By Onlooker 21st Aug 18, 8:54 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    One of the half page advertisements with regard anyone taking out a Lifetime Mortgage said you will still be allowed to live in your home,which seems condesending about the same as the alternative that you could always get a part-time job.
    Now they are quoting the saints in heaven as to why anyone who has found themselves trapped in a lifetime of mounting debt should not be angry with anyone but themselves.
    The problem with the lady contributor is along with most of the equity release industry they have not used their own product thereby having no reason to get angry at all.Consider
    • Onlooker
    • By Onlooker 25th Aug 18, 8:47 AM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    The latest full page advert. describes understanding the complications and consequences of raising movies with a Lifetime Mortgage as way as ABC.This won't be the case for many people lacking financial understanding. XYZ good be a better guide. X Xtra interest added on annually B Beware of mounting loss of equity in your own home. C Can reach a position of having nothing left..If this is not possible why the do the providers guarantee that you will not owe more beyond this point.Consider
    • Onlooker
    • By Onlooker 30th Aug 18, 3:08 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    Questions Does a butcher eat meat?Does a baker eat bread?Does a candlestick maker ever see the light?
    Does a Lifetime Mortgage rep.sign up for his own product?
    We have asked this question before without receiving a reply.
    Another query is where does the £3million + come from when a provider gives it annually to

    a leading equity release advertiser or rewards another with a £250.00 reward for each new

    enquiry they receive.Consider'
    • ACG
    • By ACG 30th Aug 18, 3:17 PM
    • 17,490 Posts
    • 9,297 Thanks
    ACG
    1) Questions Does a butcher eat meat? - Probably
    2) Does a baker eat bread? - Probably
    3) Does a candlestick maker ever see the light? - What has a candlestick maker and religion got to do with one another?
    4) Does a Lifetime Mortgage rep.sign up for his own product? - Most reps will be too young to take out their own products.

    We have asked this question before without receiving a reply. - I dont recall seeing the question previously otherwise I would have answered.

    5) Another query is where does the £3million + come from - Pension funds usually.

    It is not uncommon for finance providers to pay people who introduce business to them. The alternative is they spend more money on advertising or hire a sales team/bigger sales team.

    Hopefully I have cleared up some of your questions. 4 of the 5 questions are completely unrelated to the thread and I would expect from a 3 year old, but I am always happy to help.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 30th Aug 18, 3:28 PM
    • 34,101 Posts
    • 18,503 Thanks
    kingstreet
    As I've said before, interest roll-up isn't the only option. There are interest-only mortgage products for the retired and I wish Onlooker would actually acknowledge this, instead of the regular bump to his anti-roll up thread.

    FWIW I don't sell interest roll-up products Onlooker, before you accuse me of bias.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Onlooker
    • By Onlooker 2nd Sep 18, 11:45 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    We wonder how far the Lifetime Mortgage providers are going to go to entice people into being trapped in a future of increasing debt.Anyone who gets misled that their future will be full of singing and dancing
    as per the latest advert without taking full notice of the financial consequences will be mistaken.
    It is not a decision to be taken in such a sort of light hearted manner.Consider.
    • Onlooker
    • By Onlooker 9th Sep 18, 5:39 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    The latest Lifetime Mortgage advert.states that you can have more income in retirement.The money released is your own and the cost of doing so will lead to a much less asset in your property in your future.
    A typical house price at the moment is £250,000.You may borrow say£50,000 from your equity at a compounding interest rate of about 5%

    In about 20 years from now your debt will have increased to £132,664.89.
    To keep your £250,000 property wealth after payment of this debt house inflation would have to be over 2.2% per annum over this same period which cannot or will not be guaranteed.Get your own comparison from your anticipated or other advisor.Consider
    • Onlooker
    • By Onlooker 14th Sep 18, 2:56 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    One of the tabloid newspapers the other day contained 4 advertisments from 4 different providers.Why?
    Do they know more than the man in the street?The financial implications of the future are of a unknown quality at the moment and people should but aside thoughts of getting involved with long term arrangments such as Equity Release and Lifetime Mortgages until we are all aware of the final outcome.If there is deflation in the housing market then the biggest losers will be those who are already in debt though taking out equity.
    A 9 to 12 month wait will give a proper picture of the future and in most cases will cost nothing but could save you loss of inheritance in that future.Consider.
    • Onlooker
    • By Onlooker 17th Sep 18, 9:22 PM
    • 59 Posts
    • 12 Thanks
    Onlooker
    Lifetime Mortgage
    With regard to the latest multitude of adverts.trying to attract attention towards Equity Release /Lifetime Mortgages but still re-iterate that you that you will covered by the guarantee that you will never owe more that the value of your home plus accrued interest.Taking a £250,000 property wtth say a future inflation rate in property of 2% and a £50,000 lifetime mortgage @ say 5% the said guarantee would not be relevant for about 35 years.
    Should properties not achieve that growth and the lifetime mortgage,which will accumulate anyhow, then the two figures are guaranteed to meet a lot sooner.Consider
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