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Archive for February, 2012

What is an Impaired Life or Enhanced Equity Release Plan?

Saturday, February 18th, 2012

There is no denying the fact that an impaired life or enhanced equity release plan sounds a little cold and cruel – after all, the actuaries at the insurance companies have number crunched their statistics to come up with a more attractive plan if you are able to prove that you’re less likely to live as long as the average person. However, just for once in this world, this is a type of financial plan that could definitely work in your favour if you are in poor health – now how often does that happen?

 

Bearing in mind that the standard equity release plan will be based on an average life expectancy (of say around 80+ years of age), standard plans presume that the client will remain within their property for a certain number of years. Therefore, the equity release UK company will have to wait until the clients have either passed away or moved into permanent residential care before they are able to finalise the plan and reclaim their equity in the property.

 

If you qualify for the impaired life equity release scheme you would prove to the equity release provider that you are unlikely to remain within your property for such a long period of time and therefore the lender would be able to finalise the plan more quickly. This is where more favourable rates and payouts may be available to an applicant for an impaired life equity release plan and this can even be around 30% more advantageous.

 

Applying for an impaired or enhanced equity release plan is only slightly more involved than the standard lifetime mortgage or home reversion plan; you will be required to complete a short health & lifestyle questionnaire that asks if you have ever been diagnosed with certain medical conditions. At the end of the application, if it is presumed that your life may be impaired, you could qualify for a much bigger lump sum from your equity release plan.

 

Just as it is possible to use an equity release calculator to ascertain the expected level of payout for a standard policy, so too can you use this tool to work out what level of payout would be available for an impaired life equity release plan. However, these impaired life equity release calculators are not always entirely accurate. This reason being is that some enhanced equity release lenders such as more2life have varying degrees of enhancement. This is due to the severity of the ill-health the applicant maybe experiencing. The greater the number of illnesses, the greater the potential equity release tax free lump sum.

There are very few times in this life where ill health can actually deliver a better financial reward, but with impaired life equity release schemes from the likes of: –

  • AVIVA  – Lump Sum Max plan

 

If you can get past the actuaries working for these equity release providers and would really appreciate some much needed cash at the moment, investigate the possibility of such an impaired life plan and get out there and start living your life to the full.

Equity Release Supermarket has access to impaired or enhanced equity release schemes. These come with exclusive offers such as free valuation & cashback deals. To receive a enhanced equity release quote or product factsheet please complete our contact form.

 

To evaluate whether you qualify why not call the equity release team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

 

EQUITY RELEASE SUPERMARKET RATE ALERT…Stonehaven Reduce Rates

Friday, February 10th, 2012

Just as you thought things couldn’t get much better with equity release interest rates, Stonehaven have joined the latest interest rate war by announcing the lowest annual interest rate yet of just 5.89%.

 

It looks like Aviva & Just Retirement have stirred up a hornets nest within the equity release market.

 

Stonehaven equity release have stated they will be reducing their lifetime mortgage interest rates across their whole product range with effect from Monday 13th February 2012. With their benchmark gilt rate now falling to just over 2% they have reduced their interest rates accordingly & maybe more reductions to follow?

 

The greatest reduction has been on their interest only lifetime mortgage product – Interest Select Max which offers the highest loan-to-value. This has been reduced from 7.57% down to 7.10% monthly.

 

For comparison purposes, on a £50,000 Stonehaven Interest Select Max mortgage, the monthly payments would have reduced from £315pm down to £296pm. A saving of almost £20pm.

 

However, the greatest reduction is evident the lump sum product range & it seems Stonehaven are now trying to capture more of the lump sum equity release market. Hence their slightly aggressive stance in lowering below Aviva’s 5.92% rate announced only the other day.

 

Their niche interest only lifetime mortgage has played a major role in assisting people who have been left stranded by the recent withdrawal of the Halifax Retirement Home Plan.Without the Stonehaven interest select mortgage, there would be no other interest only lifetime mortgage lender in England & Wales.

This is due to the fact that Stonehaven only lend in England & Wales, which means that people in Scotland & Northern Ireland still need to source alternative lenders should they be looking for interest only mortgages. Equity Release Supermarket can still assist here but please contact us on 0800 678 5159 for details.

 

Details of  Stonehaven’s new interest rates are as follows: –

Lump Sum Lite               5.89% (was 6.13%)

Lump Sum                      5.98%

 

Their range of interest only lifetime mortgage rates are as follows: –

Interest Select Lite         6.08% (was £6.13%)

Interest Select                6.17%

Interest Select Plus        6.46%

Interest Select Max        7.10%

 

If any of these new deals are of interest to you, please contact the Equity Release Supermarket team on 0800 678 5159 where an adviser can provide guidance as to which Stonehaven equity release mortgage would be suitable.

Alternatively, you can email on mark@equityreleasesupermarket.co.uk

 

Further links for Stonehaven are as follows: –

 

Request a Stonehaven Quote | Stonehaven Factsheet | Stonehaven Deals |

Request Stonehaven Advice

 

Aviva Announce News of the First Sub 6% Equity Release Interest Rate for over 5 years!

Tuesday, February 7th, 2012

Aviva today announce an exclusive 5.92%pa interest rate to Equity Release Supermarket on its Lifestyle Flexi plan.

News had it that 2012 was going to be a breakthrough year for the Equity Release Market. Today this statement was confirmed.

The first sub 6% annual interest rate for over 5 years will have a major impact on the equity release market & confidence in general.

Ironically enough, this followed news earlier in the day from Just Retirement that it had just reduced its own rate in reaction to Aviva’s a week earlier. The new Just Retirement rate of 6.15% pa was considered extremely competitive until Aviva gatecrashed their party later on in the day.

Today’s groundbreaking news on the Aviva Lifestyle Flexi plan has come hot on the heals of my previous news items of 27th January  & 30th January in announcing earlier Aviva and LV= rate reductions.

 

So why is there such an equity release interest rate war currently?

We need to look at the market as whole, the recent economic factors & how these companies are funded.

Both Aviva & Just Retirement are big annuity providers & companies with the backing of annuities have been able to ride the storm, ever since the credit crunch began a few years ago. You may be aware that most equity release companies with bank funding such as Saffron, Coventry Building Society & Hodge Lifetime to some degree, have dropped out of the market. Longer term funding has been an issue for them.

 

However, this doesn’t answer the whole story, so lets look a bit deeper…

We have mentioned the credit crunch. It is evident first hand from our Equity Release Supermarket data that a significant element of equity release loans are for financial, rather than lifestyle factors. This means there is a greater emphasis on ‘need’ rather than ‘wants’.

Retirees in general are finding retirement a financial struggle in trying to make ends meet. Overall attitude towards retirement & their legacies has also changed over the years with a more ‘live for today’ motto. With drawdown equity release plans becoming increasingly popular, this lends true to our analysis.

People are taking just enough for today to clear debts, help the kids & have a small amount behind them to provide that ‘cushion’ that provides them with a feel good factor.

 

 

The Aviva Lifestyle Flexi Deal in Finer Detail

Market leading fixed interest rate of 5.92%
£500 cashback on completion
FREE valuation upto £1 million
Drawdown equity release scheme
Earliest age for application of 55 years
Minimum £10,000 initial loan
Minimum property valuation of £75,000

 

In addition to the great news on their lowest interest rate for years, now is as good time as any to take out an Aviva Equity Release Plan. With both a £500 cashback & free valuation offer, the net set up costs for an equity release application are now minimal. With Equity Release Supermarket’s advice fee being lower than its major competitors, then now is the time to seriously considering taking out an equity release plan with Equity Release Supermarket, if you have strong intentions to do so anyway.

 

Early Repayment Advantages with Aviva

With GILT rates at a current all time low, it would also favour equity release lenders who use gilts to govern their early repayment charges. Aviva use an individual government gilt to measure whether a future early repayment charge will apply. The yield of this gilt is noted on the day the equity release plan starts. Upon redemption, the yield is noted at that point & gauged to see whether it has it increased or fallen during that period.

 

Should the gilt yield have increased or stayed the same then NO penalty will apply. Aviva will even permit a reduction of 0.12 basis points before even applying a penalty. Therefore, with gilt rates currently being so low, there is less likelihood of the yields falling today than ever previously. However, this cannot be guaranteed & if you are considering early repayment then please speak to our team of advisers first.

With a national team of equity release advisers who can provide both face-to-face & phone based financial advice, we are only a telephone call away from offering you a market leading equity release deal.

If you would like to take advantage of a free initial consultation regarding the Aviva or any other equity release mortgage, please call the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

The following links provide further equity release information: –

Request an Aviva quote  | Request a Just Retirement quote  | Find a local adviser |

Equity Release Calculator

 

 
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