• Equity Release Solicitors: What They Do and Why They’re Essential

    By Equity Release Supermarket Team on

    As you are reading this article, chances are you already know a thing or two about equity release and want to flesh out the finer details. If so, you’ve come to the right place. At Equity Release Supermarket, we are long-standing members of the Equity Release Council, or ERC (the industry’s governing body), which means that we meet the high standards the Council sets out and have vast experience in advising our clients on what they need to do during the equity release process. One of these standards is that you must have at least one face-to-face meeting with an independent…

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  • The Pros and Cons of Equity Release

    Our home is our sanctuary, our haven of safety, and, for many, our biggest asset. It’s perhaps for this reason that last year nearly 39,000 UK homeowners used their property to boost their finances*. By using equity release plans, (the most common of which are known as lifetime mortgages), older homeowners are able to fund home improvements, help their children out financially or improve their lifestyles by accessing the money they have tied up in their property. However, lifetime mortgages are not for everyone, and it is essential that you weigh up the pros and cons of equity release before you…

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  • Would you like greater flexibility?

    By Carrie Ann on

    Medical experts spend a lot of time telling us how important it is to be flexible in later life. The adage of ‘use it or lose it’ couldn’t be truer when it comes to staying mobile and active as we get older. Flexibility gives us options and choices. We can try to keep up with the grandchildren, go for long walks or continue to do simple things – like carry the shopping. For the more adventurous amongst us, we could tick something off the ‘bucket list’ – like swimming with dolphins? According to a recent survey in the Daily Mail, swimming…

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  • How Flexible are Lifetime Mortgages for Residential Interest-Only Customers Looking to Escape & Maintain Status Quo?

    By Simon Maher on

    There has been much publication around the subject of interest-only mortgages in the residential property market and later life lending. One option for people stuck with interest-only mortgages and looking for a solution to repay and maintain status quo, is a lifetime mortgage. Here I wish to explain how the many flexible features of lifetime mortgages can help people in such situations. Over the last few years lifetime mortgage lenders have become more creative and launched more products to satisfy the ever-increasing growing demands of Lifetime Mortgage customers. As an equity release specialist, I have been advising on this product…

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  • Legal & General Optional Payment Lifetime Mortgage – A Toe in the Water Before a Dive into the Retirement Interest Only Market?

    By Mark Gregory on

    The recent launch of Legal and General Home Finance’s Interest-Only Lifetime Mortgage has generated a lot of media commentary. The Optional Payment Lifetime Mortgage plan aims to address some of the issues surrounding the plight of over 1.6 million interest-only mortgage prisoners. But is the product worthy of all the fuss? Here we discuss the merits of the Optional Payment Plan and its timely launch – at the dawn of the Retirement Interest-Only Mortgage era. The term ‘Interest-only’ has been synonymous with the economic crash over a decade ago, when poor lending eventually led to a tougher stance by the Financial…

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  • What are retirement interest-only mortgages?

    By Carrie Ann on

    There are currently very few options for older people wanting to continue their mortgages into retirement. While many lenders have relaxed their upper age limits for residential mortgages – for example Halifax’s is now 80 and Nationwide’s 85 – there are catches. You must be able to prove that you can afford to make monthly mortgage repayments in retirement, and so pass the lender’s ‘affordability’ checks. Unless you are lucky enough to have a final salary pension scheme (e.g. if you are a teacher or are employed by your local Council) then it is very unlikely that you will be…

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  • The benefits of using an online equity release calculator

    By Carrie Ann on

    Equity release is an increasingly popular means of accessing the money tied up in a property, with the Equity Release Council reporting a 40% increase in lending in 2017. These schemes are ideal for older people who may find themselves asset rich but cash poor due to ever increasing house prices, but with limited savings. Equity release schemes enable the release of tax-free cash (equity) in either a lump sum or a series of withdrawals (what is known as drawdown). The way in which you spend the money is entirely up to you. As a result, equity release can significantly…

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  • Equity release – A lifeline for those with interest-only mortgages?

    By Carrie Ann on

    Nearly one in five existing mortgage customers have an interest-only mortgage and the Financial Conduct Authority (FCA) is concerned that shortfalls in repayment plans could lead to people losing their homes. There are currently 1,600,000 full interest-only and part capital repayment mortgage accounts outstanding in the UK. They represent 17.6% of all outstanding mortgage accounts and over the next few years increasing numbers will require repayment (www.fca.org.uk/news/press-releases/fca-urges-action-on-interest-only-mortgages – 30.1.2018). In 2013, the FCA identified three residential interest-only mortgage maturity peaks. The first peak, happening now, is likely to have more modest shortfalls due to the profile of customers typically being…

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  • Equity release – A way to help millennial children onto the property ladder

    By Carrie Ann on

    The Resolution Foundation (1)  have recently published a report which reveals that the millennial generation may never own their own home and may be forced to live in and raise their families in privately rented accommodation. The millennial generation are younger people aged between 20 to 35 years old and there are currently 14 million of them in the UK. Given their age, they are often the children of baby boomers – the post war generation that were able to buy affordable homes and have benefitted from the incredible increase in property prices over the last 30 years. According to…

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  • Do you have to pay tax on equity release?

    By Carrie Ann on

    Equity release is becoming an increasingly popular way for older homeowners to access the money tied up in their homes. Figures published by the Equity Release Council in January 2018, highlighted that over £3 billion of property wealth was accessed by over 55’s in 2017 – a 40% increase on the previous year. With a wide choice of plans available, people are turning to equity release for many different reasons – from supporting their retirement incomes, to paying off existing mortgages and debt or helping their children onto the property ladder. In some circumstances, people are also using equity release to…

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