• Borrowing in Retirement

    By Carrie Ann on

    One significant development in the financial services industry since the financial crash of 2008 has been the indecision of the future of retirement mortgage products. With a complete review of the mortgage industry undertaken via MMR, the post retirement mortgage market was almost decimated by the demands of the FCA, as lenders withdrew their products or put a stranglehold on criteria. Previous generations either chose not to take out mortgages which stretched into retirement, or were unable to find a suitable lender. The end of jobs for life and the emergence of flexible retirement ages through early retirement plans in…

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  • Why knowledge is key in the equity release market

    By Carrie Ann on

    Anyone even vaguely contemplating equity release ought to be aware that, as with so many things, knowledge is power. Although equity release receives increasing amounts of press coverage, many people remain unsure about what exactly it is, or how to get the best equity release deal. The equity release industry itself bears some responsibility for this knowledge gap. That said, many providers and other interested parties are making excellent efforts to ensure a wider general knowledge and understanding of the ins and outs of equity release. A basic and, to some, obvious rule of thumb is that no-one should consider…

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  • Using equity release money to go on holiday

    By Carrie Ann on

    While ‘spending the children’s inheritance’ used to be taken with a pinch of salt, many older people are releasing the money in their properties to enjoy it for themselves. Indeed, one in eight people taking out equity release are using the cash for holiday adventures, according to Retirement Advantage research. Other people intend to spend their nest egg on buying a car (9%) and investing in a new property (5%). However, the most common reason for applying for equity release was to carry out improvements to the home and garden. Many people are sitting on a small fortune in their…

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  • Would You Support Your Parents to Take Equity Release?

    By Mark Rumney on

    Having advised on equity release schemes for over 17 years, I’m fully aware withdrawing capital from your home is a very important decision. It is probably the biggest financial decision you may take during later life. It is, of course, usually the largest asset by far that any of us will ever own, and will have been paid for through hard work during our working lives. It’s therefore fully understandable that clients who are considering a lifetime mortgage often ask these similar questions: • Are many people doing these schemes? …

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  • Can you move house if you’ve taken out equity release?

    By Carrie Ann on

    Are you a homeowner and looking at retirement solutions such as equity release? If so, what are the basics that you should be aware of, and what does it mean for your future and your home? What Exactly Is Equity Release? Equity release is basically a way of releasing part or all of the increase in value that has built up in a property. People buying property in the 1980s will have seen the value of that property increase significantly in the period between then and now – indeed, the average house price in 1980 was just £22,676 and now…

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  • Why the Nationwide Equity Release Tie Actually Boosts Uptake of Independent Advice

    By Mark Rumney on

    The announcement by Nationwide Building Society to enter the lifetime mortgage market is a great boost to the world of equity release. They are, after all, the biggest building society in the UK, and their decision to start offering products to their customers, via a third-party advice arm, is another example of equity release becoming a mainstream financial services product. Nationwide’s Equity Release Proposal The move by Nationwide follows similar decisions by other high street lenders like Santander and Co-op, who are also both using a 3rd party firms to advise their customers. The equity release industry is thrilled…

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  • Meet John Who Helped His Granddaughter Buy Her First Home

    By Mark Gregory on

    Meet John who is 78 years old and has admired his only granddaughter, Victoria who he’s seen grow up over the years. John is proud that Victoria has worked her way through school and university and has now secured a good job in London. John being close, has witnessed how Victoria struggles each month and particularly so in trying to save up every month with a view to getting on the housing ladder. From the income she receives, she spends what she earns on everyday costs and day-to-day living. John’s always wanted to leave Victoria an inheritance, and with…

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  • Why more people trust equity release than ever before

    By Carrie Ann on

    Equity release has recently experienced a boom that few other markets have experienced. In 2017 it has become the fasting growing part of the mortgage market – but why has this happened? It is perhaps surprising that equity release is so popular nowadays, as it has received a lot of negative press from the media in previous years. Many newspapers in the 1990’s shamed certain banks, due to Shared Appreciation Schemes they offered which took a charge over someone’s house, but also a share of the escalating house value. It is stories such as these that led people to believe…

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  • Are you missing out on a retirement income boost? – A note from the government

    By Carrie Ann on

    People of all ages are concerned about how they will cope financially when they retire. Indeed, it is one of the key stressors for those people in their 40s and 50s. The full state pension amount stands a £159.55 per week per person, as at September 2017. By 2020, the state pension age for men and women will be the 66 (dependant on birth year). It is never too early to start saving for your retirement or paying into a pension plan. Indeed, automatic enrolment, which was introduced in 2008, means that employers have to make a contribution to the…

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  • A lifeline for people unable to pay interest only mortgages

    By Carrie Ann on

    Interest only mortgages may seem like a great idea at the beginning of home ownership, but there are fears that there is a large and increasing number of householders reaching the end of their interest only mortgage term, who do not have any way of clearing their debt. These people risk having to sell their property and downsizing to something less desirable. Regulations introduced by the Financial Conduct Authority, post economic crash, make it extremely difficult for older people to extend, or get new interest only mortgages, which has created the so-called Interest-Only timebomb effect. As a result, UK authorities…

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