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  • FIRST POST
    • psycho89
    • By psycho89 6th Sep 18, 4:34 PM
    • 9Posts
    • 3Thanks
    psycho89
    Guidance needed on 'Equity Release'
    • #1
    • 6th Sep 18, 4:34 PM
    Guidance needed on 'Equity Release' 6th Sep 18 at 4:34 PM
    Until recently I can't remember seeing much on 'Equity Release'.
    Now, on daytime TV and social media, there seem to be a number of players offering to advise and/or provide.
    On the site I can only find an item written by Martin in 2010.

    I think it would be helpful for an update on this.

    These advisors don't spend on advertising etc unless there's money to be made.
    In addition, as a pessimist, I fear the start of another debacle along the lines of PPI!
Page 1
    • Computer Beginner
    • By Computer Beginner 6th Sep 18, 11:35 PM
    • 269 Posts
    • 150 Thanks
    Computer Beginner
    • #2
    • 6th Sep 18, 11:35 PM
    • #2
    • 6th Sep 18, 11:35 PM
    Until recently I can't remember seeing much on 'Equity Release'.
    Now, on daytime TV and social media, there seem to be a number of players offering to advise and/or provide.
    On the site I can only find an item written by Martin in 2010.

    I think it would be helpful for an update on this.

    These advisors don't spend on advertising etc unless there's money to be made.
    In addition, as a pessimist, I fear the start of another debacle along the lines of PPI!
    Originally posted by psycho89
    I think there has already been one ''PPI - style'' fuss about equity release, in the past?

    Yes, it seems that high asset prices have resulted in most of the country's 'wealth' being locked into high house prices - so equity release is back on the agenda.

    I'm not sure how this will play out regarding care home fees. Can't see the govt being too happy about large amounts of money been given away (eg to younger relatives), prior to care home assessments being needed...
    • 00ec25
    • By 00ec25 7th Sep 18, 6:31 AM
    • 7,208 Posts
    • 6,896 Thanks
    00ec25
    • #3
    • 7th Sep 18, 6:31 AM
    • #3
    • 7th Sep 18, 6:31 AM
    What version of Google are you using? You should get it updated because the article I found says: Updated 1 June 2018....

    https://www.moneysavingexpert.com/mortgages/equity-release/

    there is even a whole forum for discussing it started on 26 June 2018 :
    https://forums.moneysavingexpert.com/showthread.php?p=74455284&_ga=2.7239477.605436460. 1533967828-1746307785.1533967828

    not forgetting that lots of others besides "Martin" (who is now just a face on here since he sold the site ages ago) provide guides that are just as informative:

    https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs65_equity_release_fcs.pdf

    https://www.moneyadviceservice.org.uk/en/articles/equity-release

    https://www.which.co.uk/money/pensions-and-retirement/youre-retired-working-on-benefits-equity-release/equity-release/what-is-equity-release-a5jqy4d36xlv

    https://moneyfacts.co.uk/guides/retirement/guide-to-equity-release-may-2012/
    • Nebulous2
    • By Nebulous2 7th Sep 18, 7:29 AM
    • 2,099 Posts
    • 1,287 Thanks
    Nebulous2
    • #4
    • 7th Sep 18, 7:29 AM
    • #4
    • 7th Sep 18, 7:29 AM
    It looks as though there will be additional legislation coming around equity release.

    https://www.telegraph.co.uk/business/2018/09/02/equity-release-specialist-just-threatened-crackdown/

    I must admit I particularly dislike the term equity release. It makes it sound as though you have a bird trapped in your house and they are going to open the door and let it soar free.

    You aren't 'releasing' anything. You're taking a loan / a substantial debt / giving a mortgage and using what may well be your only substantial asset as security.
    • Computer Beginner
    • By Computer Beginner 7th Sep 18, 6:06 PM
    • 269 Posts
    • 150 Thanks
    Computer Beginner
    • #5
    • 7th Sep 18, 6:06 PM
    • #5
    • 7th Sep 18, 6:06 PM
    It looks as though there will be additional legislation coming around equity release.

    https://www.telegraph.co.uk/business/2018/09/02/equity-release-specialist-just-threatened-crackdown/

    I must admit I particularly dislike the term equity release. It makes it sound as though you have a bird trapped in your house and they are going to open the door and let it soar free.

    You aren't 'releasing' anything. You're taking a loan / a substantial debt / giving a mortgage and using what may well be your only substantial asset as security.
    Originally posted by Nebulous2
    It is a confusing term.

    A few years ago, I remember some companies offering to buy your house and ''rent'' (ie let) it back to you. This wasn't aimed at elderly retired, more people in financial problems. There was some concern about these firms. Haven't seen much about that recently, maybe due to ZIRP and QE reducing their market? Or maybe the regulators hassled them out of business?

    So what's the alternative for retired folk, living in a valuable house, but little cash to spend?

    Maybe sell the house, buy an annuity and rent somewhere? That won't be popular (but buying an annuity would probably not be classed as 'deprivation of assets'?).
    Hence 'equity release', for now. But I wouldn't be surprised if the govt don't clamp down on it, if it starts to reduce social care cost contributions...
    • psycho89
    • By psycho89 8th Sep 18, 7:17 PM
    • 9 Posts
    • 3 Thanks
    psycho89
    • #6
    • 8th Sep 18, 7:17 PM
    • #6
    • 8th Sep 18, 7:17 PM
    Thanks for your comments 'Computer Beginner'
    Yes, it could well be used to avoid care home fees - another complication!
    • psycho89
    • By psycho89 8th Sep 18, 7:23 PM
    • 9 Posts
    • 3 Thanks
    psycho89
    • #7
    • 8th Sep 18, 7:23 PM
    • #7
    • 8th Sep 18, 7:23 PM
    Thanks for the links 00ec25
    Well, I just used the search box on the Moneysavingexpert.com website for 'equity release'.
    I'm grateful for your search skills and will have to improve mine.
    • psycho89
    • By psycho89 8th Sep 18, 7:31 PM
    • 9 Posts
    • 3 Thanks
    psycho89
    • #8
    • 8th Sep 18, 7:31 PM
    • #8
    • 8th Sep 18, 7:31 PM
    Thanks Nebulous2
    Interesting to see if legislation will follow..........
    • p00hsticks
    • By p00hsticks 8th Sep 18, 7:37 PM
    • 6,481 Posts
    • 7,016 Thanks
    p00hsticks
    • #9
    • 8th Sep 18, 7:37 PM
    • #9
    • 8th Sep 18, 7:37 PM
    In today's Telegraph


    https://www.telegraph.co.uk/personal-banking/mortgages/dangers-equity-release-65000-loan-costing-12000-year-interest/
    • Crashy Time
    • By Crashy Time 8th Sep 18, 9:03 PM
    • 6,809 Posts
    • 2,511 Thanks
    Crashy Time
    It looks as though there will be additional legislation coming around equity release.

    https://www.telegraph.co.uk/business/2018/09/02/equity-release-specialist-just-threatened-crackdown/

    I must admit I particularly dislike the term equity release. It makes it sound as though you have a bird trapped in your house and they are going to open the door and let it soar free.

    You aren't 'releasing' anything. You're taking a loan / a substantial debt / giving a mortgage and using what may well be your only substantial asset as security.
    Originally posted by Nebulous2

    Exactly. A house doesn`t store value, it is priced by the current appetite and availability of mortgage debt.
    • Crashy Time
    • By Crashy Time 9th Sep 18, 6:45 PM
    • 6,809 Posts
    • 2,511 Thanks
    Crashy Time

    The notion of houses as a personal ATM was always going to end badly
    • psycho89
    • By psycho89 10th Sep 18, 2:48 PM
    • 9 Posts
    • 3 Thanks
    psycho89
    Thanks for the interesting Telegraph link, p00hsticks and your comments Crashy Time
    • Crashy Time
    • By Crashy Time 14th Sep 18, 7:24 PM
    • 6,809 Posts
    • 2,511 Thanks
    Crashy Time
    http://www.propertyreporter.co.uk/business/the-right-mortgage-protection-network-join-the-equity-release-council.html
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