• 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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  • 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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  • Helping your grandchildren to get on the property ladder

    By Carrie Ann on

    Getting on the property ladder continues to be a struggle for first-time buyers. It can take 13 years for a single first-time buyer to raise enough funds for a deposit alone, and this increases to nearly 46 years for those living in London (https://www.saga.co.uk/money/equity-release/how-to-get-your-children-on-the-property-ladder). It is little wonder then, that many first-time buyers get financial help from their family in order to get a foot on the first rung of the property ladder. It is not just parents who are providing a financial helping hand to their children wanting to buy a house. Increasingly, grandparents are stepping in, too….

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  • How to choose the right equity release advisor

    By Carrie Ann on

    Equity release is becoming more and more popular with people who want or need to release extra cash in their later years. Figures from the Equity Release Council in November 2017 have shown the market has grown significantly. It has stated the over-55s have withdrawn a total of £824m in equity release from their homes in the third quarter of 2017, representing a 44 per cent increase on the previous year. Available to homeowners aged over 55, equity release schemes allow you to access part of the cash tied up in your property as either a lump sum or as smaller,…

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  • Stamp duty increases borrowing in retirees

    By Carrie Ann on

    A combination of high stamp duty charges and a shortage of suitable, smaller homes is forcing more and more older people to borrow money rather than downsize, according to the latest data. Stamp duty tax, which is payable when buying a new property, is perceived as too high a price to pay for moving by many pensioners, who are seeking other ways to remain in their often large and unsuitable homes. The issue has led to the number of mortgages taken out by those over 60 soaring in recent years. According to the Equity Release Council, the number of people in…

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  • Buying a second property with equity release

    By Carrie Ann on

    Everyone is aware of what a residential mortgage is, how it works and what its function is. Primarily, a residential mortgage provides valuable funds that bridges the shortfall between the property purchase price & the deposit saved by the intended mortgagor. These mortgage funds are then sent at the end of the legal process to assist with the house purchase. I always state to my clients that equity release is only a form of mortgage itself, and actually when it comes to purchasing a property, equity release works in exactly the same way as a residential mortgage…It provides a capital…

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