• What Are the Long Term Costs of Equity Release Schemes?

    By Mark Rumney on

    One of the most enjoyable aspects of being an equity release adviser is that every customer is different, and have their own unique set of personal circumstances. One of the main areas concerning my equity release clients is how much equity release will cost them over the longer term. We can calculate the maximum amount of borrowings initially using an equity release calculator, however calculating the actual balance to be repaid upon death or long term care is a different calculation. My clients vary significantly, from those who have no interest at all in what will…

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  • Interest Rate War Stokes Up the Equity Release Market

    By Mark Gregory on

    Equity Release Supermarket are currently experiencing the largest number of equity release interest rate reductions that have ever been witnessed in the industry. With lifetime mortgage rates now starting below 3% for the first time ever, and fixed rates below 4%, we look at the effect this can have on homeowners over the age of 55, who are maybe considering ‘is now the best time to apply for a lifetime mortgage?’.  

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  • Why the OneFamily 2.96% Variable Interest Rate is a Game-Changer for the Future of Equity Release

    By Mark Gregory on

    Launching a unique range of variable & fixed rate equity release schemes, the OneFamily ‘Lite’ & ‘Standard’ plans may herald the start of the greatest innovation the equity release market has seen. Where many have dared, OneFamily boldly go where no equity release has gone before: The Final Frontier – Variable Interest Rates! The significance of a variable equity release interest rate should in no way be underestimated, as it marks the end of a long journey that has seen a lack of innovation in lifetime mortgage product design. Understandably, there are economic & regulatory factors that may have influenced…

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  • Do I Qualify for an Equity Release Mortgage?

    By Mark Gregory on

    There is several strict criteria equity release companies use to assess whether any individual is eligible to take out a lifetime mortgage, or home reversion plan. To qualify for an equity release mortgage the overriding criteria must be that the applicant must own their property, of which it must be their main residence. Let’s look at the rest of the equity release qualifying rules individually: – 1. Location of Home – the property MUST be situation in the UK which includes England, Wales, Scotland and Northern Ireland. Following this, certain lenders can impose localised rulings as…

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  • What Borrowing Options Exist with Old Prudential Equity Release Plans?

    By Mark Rumney on

    The first quarter of 2016 has seen a huge amount of equity release lending. Equity Release Council statistics show that £393 million pounds of equity was released from UK homes. The vast majority of these funds have been released to customers using equity release schemes for the first time. However, some of this money has been released by existing customers of companies who no longer offer equity release; one of whom is the Prudential. Here we look at what options are available to existing

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  • Equity Release 2016 – The Changing Landscape

    By Allen Tomlinson on

    Looking back a mere 12 months or so, the landscape of Equity Release and in particular, Lifetime Mortgages has changed dramatically. Yes, the number of people utilising some of the wealth generated in their property has increased to a record level equating to over £1.7bn in 2015, but this has been driven in no small part by the innovation shown by the equity release lenders to provide ever increasing choice and flexibility in the plans made available to those 55 and over. Equity Release Voluntary Repayments – New Freedom of Choice The greatest change to the equity release marketplace…

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  • Review your Papilio UK (Northern Rock) Lifetime Mortgage to Calculate the Substantial Savings You Can Make.

    By Mark Gregory on

    One of the casualties on the 2008 financial crash was the Newcastle based – Northern Rock bank. For the first time in over 180 years, we saw a run on a bank in the UK. After the calamity of the credit crunch and the resulting fallout thereof, we evidenced the collapse of Northern Rock. This meant the bank was eventually sold off in parts, with the profitable banking arm being acquired by Virgin Money. However, importantly the lifetime mortgage loan book was bought by J P Morgan who transferred administration of the lifetime mortgages to its subsidiary,…

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  • Common and Unusual Equity Release Uses

    By Mark Rumney on

    Having been advising on equity release for 15 years, I’ve met hundreds of people who’ve released money from their home to spend how they so wish. Most tend to spend their funds on similar things: such as Paying off mortgage / debts Helping family Home improvements Holidays • Paying off mortgage / debts • Helping family • Home improvements • Holidays These reasons are consistent across the industry. However, although the reasons are common, many of the specific reasons vary. Let’s look at some of the specific, and sometimes unusual ways that my clients have spent the released equity:  

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