Lifetime Mortgage Solutions - news

  • 27/06/2018 - Matthew Standish 0 Comments
    Martin Lewis talks about equity release..... but misses vital points

    Martin Lewis tell readers - For the lifetime mortgage equity release, the typical rate is 5.14%, substantially higher than most standard mortgages.

    The eye-watering price-tag your estate would have to repay comes if you’re not making monthly repayments to reduce the debt, so the interest compounds and compounds. For example, borrow £20,000 aged 60 at 5.14% on a £120,000 home and the amount you owe doubles every 15 years. So live until 75 and you owe £40,000, live until 90 and you owe £80,000.

    As well as the actual cost of the interest, you will have to pay arrangement fees. These can typically tally £1,500-£3,000 in total, depending on the type of plan being arranged and can include things such as application fees, fees for legal work and surveryor fees.

    Firstly, I would like to thank Martin Lewis for talking about Equity Release, however, he has missed a few vital points in my opinion.

    Is 5.14% really "substantially" higher?? Martin Lewis omits to say that these rates are generally fixed for life and they actually start from around 3.7% so to use the phrase "substantially" is a little exaggerated.

    He fails to talk about house price inflation. Of course, this is not guaranteed, but surely when talking about "eye-watering price-tag your estate would have to repay” It would be more informative to offer a balanced view and ask the question - what do you think your property will be worth in 30 years’ time?  

    Martin Lewis shows tweets about people complaining about their parents having to pay back huge amounts. It would be interesting to hear why their parents did equity release in the first place? and how it actually could've changed their life. It would've also been balanced had Martin Lewis shown some good news stories from Equity Release as well

    I'm proud to be an Equity Release adviser and believe that every case I write is for my client’s best interests and has a real positive impact on their lives. When I speak about Equity Release to my clients or client’s families I always give a balanced approach and ensure they are aware of all the costs and risks as well as the benefits. It’s great that influential people are talking about the market I am passionate about, but perhaps Martin Lewis should've simply said "if you want impartial advice about equity release then speak to a specialist" after all - he's not qualified to give advice!!


    Full Martin Lewis Article


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  • 21/06/2018 - Matthew Standish 0 Comments
    my property is my pension pot

    A very informative article from this week in the Daily Mail showing how property can be your retirement fund and with equity release now available on 'buy to let' properties, there is more option available. Equity Release should always be considered when looking at your retirement planning options 


    Full Article from the Daily Mail including case study


    Dwindling pension pots mean the number of retirees tapping their properties for income is expected to rise by nearly 50 per cent over the next decade.

    Research compiled for The Mail on Sunday reveals that one fifth of over-50s – around 3.9 million people – are planning to solve a cash crisis in retirement by downsizing, making use of buy-to-let property or borrowing against the value of the family home.


    Borrowing, commonly known as ‘equity release’, is rising in popularity. Unlike a conventional home loan, equity release does not require a borrower to pay any monthly interest charges. Instead, the interest charges roll up into the loan with the final debt usually cleared when the homeowner dies or goes into long-term care.


    Some £10 million a day this way has been released from wealth tied up in property in the first three months of this year – more than double the amount taken in the same period just two years ago. Over-50s planning to release wealth from property are forecast to borrow £37 billion via lifetime mortgages, according to research by provider OneFamily.
    Nici Audhlam-Gardiner, managing director at OneFamily, says: ‘Homeowners are seeing their property as a good way to fund their retirement. This comes as income from pensions, both state and private, decreases.’


    Sarah Coles is personal finance analyst at investment adviser Hargreaves Lansdown. She agrees that pension provision is weakening. This is particularly true of final salary pensions which pay a guaranteed income for life. She says: ‘People are enjoying the peak of final salary pensions. From here on in, we will start seeing the impact of their decline. When people in their 50s retire, only a third will be getting income from a final salary pension. As a result, more will have to tap into the value of their home to address a need for income.’ Despite seeming a straightforward solution for income-hungry retirees, homeowners are advised to pay due attention to the pitfalls of using property as a pension.


    Investing in a buy-to-let property to generate retirement income can be profitable. But there are significant upkeep costs, periods when the property might be empty and capital gains tax to be paid when the property is sold. It is also an unrealistic goal for many retirees who do not have the means to buy a second property. Downsizing is an alternative way to raise cash, but it is not without drawbacks. Coles says: ‘Over time, a property becomes more than just a pile of bricks. We get emotionally invested in them. As a result, you can struggle to part with the family home, you might want a base for grandchildren to come and stay, and you may not want to leave your family and friends behind.’


    The difference between the value of a person’s home and the price of a smaller property may also not be big enough to generate a significant lump sum, particularly once moving costs are deducted. Downsizers also avoid paying a high price tomorrow for a lump sum today – which is the case with equity release. If homeowners have not discussed equity release with family – as they should as a matter of course – the slice of a family home sacrificed to repay a debt that will have ballooned over time can come as a big shock. But for many it is the only solution to address a severe drought in funds during old age. Equity release products sold in the 1980s and 1990s were poor value for money. But standards have improved.  OneFamily’s Audhlam-Gardiner says: ‘One of the biggest concerns from homeowners is that they will lose their home. They also worry they will either not be able to leave an inheritance or there are strict rules about how any money released can be used. All of these concerns are ill-founded.’  The real danger of lifetime mortgages is compound interest – the ballooning of the debt as interest charges are capitalised, triggering higher charges on an ever increasing loan.

    WAYS TO RELEASE CASH FROM PROPERTY
    Home reversion plan: You sell part or all of your home to a provider for a tax-free cash lump sum. The provider guarantees you the right to live in your home, rent free, for the rest of your life. When your property is sold, proceeds are divided according to who owns what percentage. 


    Lifetime mortgage: You take a loan against the value of your home for which interest is charged. You retain ownership of the property – and the loan, together with interest, is repaid after you die or move into long-term care. The interest rolls up each year although you can choose to make interest payments – monthly or ad-hoc – to limit the impact of compound interest.  


    Retirement interest-only mortgage: A Simpler form of lifetime mortgage where interest is repaid each month. The loan therefore does not swell and wealth in the property is preserved for family members to inherit. The loan is repaid once a homeowner dies or goes into care

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  • #lifetimemortgagesolutions for the time of your life
    18/06/2018 - Desmond O'Hara CeMAP CeRER 0 Comments
    Inheritance vs Equity Release: how do your children benefit

    Releasing equity from your home can give you much more financial freedom and boost your budget during retirement.

    We discuss is it denying your children their eventual inheritance?

    The simple maths would seem to suggest it is. After all, equity release via a lifetime mortgage is effectively remortgaging your home to free up cash, a long-term loan covered by the eventual sale of the home. And, as they say, ‘you can’t take it with you’, meaning that the loan is paid out of what might have been a capital inheritance for your dependants. In short, equity release will reduce the value of your estate.


    So, are my parents spending my inheritance?


    Not necessarily. People can take equity release for a variety of reasons,many of which involve helping them enjoy their retirement years: improving their home, taking regular cruises and holidays, or simply topping up their retirement income (which no-one knows how long will last). Equally, many people release equity to provide a living inheritance for their family, providing funds for their children and grandchildren, who may need help with weddings, studies, or deposits for a first home.

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  • Lifetime Mortgage Solutions for the time of your life
    14/06/2018 - Desmond O'Hara CeMAP CeRER 0 Comments
    Older borrowers could end up with wrong deal after FCA retirement interest-only mortgage reclass, critics say

    Older borrowers may not end up with the right product for their needs as the lines between equity release and mainstream mortgages become increasingly blurred, industry experts fear.

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  • Lifetime Mortgage Solutions introduces the latest flexible equity release to our suite of market leading products
    11/06/2018 - Desmond O'Hara CeMAP CeRER 0 Comments
    Lifetime mortgage with option of paying off interest as and when you like

    The change means customers can either roll the loan up, manage their loan with regulator payments or make individual payments of up to 10% of the loan amount.

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  • Poorly performing pension Equity Release is the answer
    03/06/2018 - Desmond O'Hara CeMAP CeRER 0 Comments
    Are you ready to pay for your longest holiday?

    An excellent piece in the FT today, it really is time to have a serious conversation about using housing wealth to supplement these pension issues.

    Please speak to your Lifetime Mortgage Solutions contact on 0333 012 4093


    Have you started planning your summer holiday? The average Brit, it is said, spends as much time researching and planning a holiday as they do enjoying it.
    What concerns me is that most people spend far less time planning for life’s longest holiday — retirement.

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  • 31/05/2018 0 Comments
    Borrowing & debt in retirement

    The rising cost of debt in retirement has increased by 25% in the last year.  Speak to a specialist at Lifetime Mortgage Solutions to see how Equity Release can ease the burden and allow you to enjoy your retirement. 

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  • 30/05/2018 - Desmond O'Hara CeMAP CeRER 0 Comments
    A residential retirement interest-only product with no end date, set term OR maximum age limit

    This latest mortgage enables interest-only payments to be made until the customer dies or goes into long term care with the capital being repaid at that point.

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  • Access equity release now
    28/05/2018 - Desmond O'Hara CeMAP CeRER 0 Comments
    The Formidable 4

    Have you heard about the formidable four features to help protect you no matter what events may occur during your lifetime:



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  • Lifetime Mortgage Solutions truly independent advice
    26/05/2018 - Desmond O'Hara CeMAP CeRER Equity Release Council Advisory Panel member 0 Comments
    Pensioners set to rack up £86billion in debt by the end of the year - more than double the level of five years ago

    Borrowing is accelerating at a faster rate than predicted 

    IT'S TIME TO HAVE A BETTER CONVERSATION ABOUT USING PROPERTY TO FUND RETIREMENT

    For our FREE comprehensive guide to Equity Release, please like our Facebook page or contact us here



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  • THE BEST EQUITY RELEASE ADVICE LIFETIMEMORTGAGESOLUTIONS.CO.UK
    18/05/2018 - Desmond O'Hara 0 Comments
    THE BEST DREAMS HAPPEN WHEN YOU'RE AWAKE

    Truly inspirational day at National Conference Centre yesterday #TRMnationaltrainingevent

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  • THE BEST EQUITY RELEASE ADVICE LIFETIMEMORTGAGESOLUTIONS.CO.UK
    18/05/2018 - Desmond O'Hara 0 Comments
    THE BEST DREAMS HAPPEN WHEN YOU'RE AWAKE

    Truly inspirational day at National Conference Centre yesterday #TRMnationaltrainingevent

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  • 15/05/2018 - Matthew Standish CeMAP CeRER 0 Comments
    Desmond O'Hara Joins The Equity Release Council's Standards Advisory Panel

    We are delighted to announce that our very own Desmond O'Hara has been appointed on to the Equity Release Council's Standards Advisory Panel 


    The Council has announced the creation of a standards advisory panel, which will consist of a range of industry practitioners. They will advise the standards board on a range of consumer issues. One of the first members appointed to this panel is Desmond O’Hara, from Lifetime Mortgage Solutions


    These appointment come at a time of record growth for the equity release sector, with activity more than doubling in two years, to £870m of lending in the first quarter of this year.
    The ERC now has 220 member firms, an increase of a third in the last year.


    Equity Release Council chairman David Burrowes says: “The Council is committed to leading and setting standards in the equity release market.”


    Mortgage Strategy Full Article

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  • 11/05/2018 - Des O'Hara 0 Comments
    Rising levels of debt faced by retirees

    For the first time since 2015/2016, we have access to industry research examining the rising level of debt faced by retirees. 



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  • 10/05/2018 - Desmond O'Hara 0 Comments
    Bank of England votes 7-2 to hold Bank Rate

    The Bank of England's Monetary Policy Committee have voted 7-2 to maintain Bank Rate at 0.5%, the same ratio as in its last meeting.

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  • 09/05/2018 - Desmond O'Hara 0 Comments
    Equity release gave economy £7bn boost in 2017: L&G

    If anyone ever doubted the importance of Equity Release

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  • 09/05/2018 - Desmond O'Hara CeMAP CeRER 0 Comments
    Wealthier homeowners will now be able to raise cash sums of up to £2m

    This new product is being offered by Retirement Advantage and is aimed at wealthier homeowners with properties worth up to £6m.

    The product has been designed for homeowners looking to use their property wealth to gift assets to the next generation.

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  • 19/04/2018 - Matthew Standish CeMAP CeRER 0 Comments
    Equity release lending more than doubles in two years to reach £870m in Q1 2018

    We, at Lifetime Mortgage Solutions, are incredibly fortunate to be working in an environment where we can deliver such life enhancing solutions for our clients. Please get in touch today for your personlised illustration. 

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