• Legal & General Income Lifetime Mortgage – A Wave or Ripple Effect for Equity Release Lending into 2019?

    By Mark Gregory on

    This week saw the launch of Legal & General’s Income Lifetime Mortgage plan, following hot on the heels of October’s release of the Saga Regular Drawdown plan. So why the sudden interest for income generation in the equity release industry? Are lenders vying for position, creating their own niches, or actually listening to consumers’ demands and needs? This article looks at why equity release providers feel this product has legs, afterall no equity release scheme since Northern Rock has provided a monthly income payment plan. We’ll look at how it works, whom it suits, compare L&G’s Income plans and discuss…

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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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  • 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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  • 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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  • 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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  • The answer to your retirement adventures

    By Carrie Ann on

    Retirement is a time to relax and enjoy life, but many people spend most of their retirement worrying about money and budgeting. If you can relate to this, and have your own main residence, this can be used to alleviate retirement finance by consider releasing equity on it. For a increasing number of over 55’s, equity release is becoming a common route to boosting your finances, so that you can truly enjoy your retirement. Equity release helps open many avenues of retirement options, from holidays abroad, to stay-at-home hobbies like gardening and caravanning. Thousands of retired people across the UK are…

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  • Equity release helps over a dozen first time buyers a week

    By Carrie Ann on

    Nowadays, becoming a homeowner for the first time is increasingly difficult. With average UK house prices standing at £223,257 as at June 2017, it means that, in the current climate, a deposit of between £11,150 (5%) and £22,300 (10%) is the minimum needed. In areas such as London, a 10% percent deposit for an ‘average’ home is an eye-watering £48,000. So how are first time buyers funding their purchases? Aside from savings and loans from financial institutions, there is now a great new option for parents to help their children become homeowners. Equity release is a way of using the…

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  • How to help your family with education fees

    By Carrie Ann on

    Most parents want their kids to do well in life, and getting a good education is often key to achieving this aim. Yet, with the average student graduating from college or university with over £50,000 in debt, getting a good education is a very expensive business. Inevitably, parents will want to chip in where they can to make a dent in the debt mountain, whether by helping with their child’s education fees, paying towards student accommodation or other expenses. But what are the best ways to do this? Many parents set up savings accounts for their children from an early age,…

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  • Keeping wealth within the family

    By Carrie Ann on

    Late middle age may have its drawbacks, but for many people, it brings multiple benefits. With the mortgage often paid off, and hopefully years of fruitful retirement beckoning, many people’s thoughts turn to how best to use the wealth they have accrued over their working years. For the majority of people approaching retirement, the concern uppermost in their minds is passing those benefits on to their family, without the threat of Inheritance Tax looming. Whether that’s helping your children pay off their debts or giving your grandchildren some money to see them through university, providing financial aid to loved ones is…

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  • Using equity release to pay off mortgage

    By Carrie Ann on

    Do you have an interest-only mortgage? It is close to reaching maturity? Do you have enough money set aside to pay it off? If not, you’re not alone – it is thought that around 85,000 interest-only mortgages will reach maturity this year, with a similar number next year. Many of the people behind those thousands of mortgages will not have the financial means to pay off the considerable debt typically left at the end of an interest-only loan – where monthly payments only account for the interest accrued, not the original capital. Indeed, the Financial Conduct Authority believes a sizeable proportion of…

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