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Archive for February, 2013

FREE Valuation Offer With Hodge Lifetime

Tuesday, February 26th, 2013

With growing interest in the Hodge Lifetime Flexible Mortgage, Equity Release Supermarket are pleased to announce a new FREE valuation deal for this market leading equity release product.

 

For all new applications from 26th February 2013, Equity Release Supermarket can offer customers taking out a new Hodge Lifetime Mortgage plan a FREE valuation on properties worth upto £350,000. For properties above the £350,000 limit will just need to cover the differential valuation cost.

Hodge Lifetime Free Valuation offer

 

Hodge Lifetime  has taken the lifetime mortgage market by storm with its forward thinking products catering for the changing needs of the over 60’s retired population.

 

The introduction of the Flexible Lifetime Mortgage Plan in 2012, saw two new features arrive that had never set foot in an industry previously devoured of new ideas & future planning tools.

 

Details of these features are as follows: –

 

  1. Downsizing Protection Option – allows anyone holding a Hodge Lifetime Plan to repay their lifetime mortgage with NO early repayment charges, providing they move house & downsize at the same time after 5 years of starting the plan. Also favourably for anyone that downsizes WITHIN 5 years –  Hodge Lifetime will only charge a penalty on a decreasing basis of 5%,4%,3%,2% & 1% over the first 5 years of the plan term. These rates are the best the equity release industry has to offer currently & helps those who have no intentions of moving now, but may do so in the future for various reasons.
  2. Flexible Repayment Option – first came the roll-up lifetime mortgage, then interest only lifetime mortgages where the interest could be repaid – now the Hodge Lifetime Flexible repayment option. Hodge now offer the facility to repay upto 10% of the original capital borrowed each year with NO penalty. Therefore, if you’re looking to cap the build up of interest with ad-hoc repayments, or even wish to reduce the equity release mortgage balance, then you can now do so. The repayments can be made anytime you like after the initial period of 12 months from the start date of the plan.

 

Hodge now have a range of lifetime mortgage plans that can be taken on a single lump sum or drawdown equity release basis with flexibility being key to their portfolio of products. With interest rates starting from 5.74% monthly (6.20% APR) and fixed for life, the present time is the best time the equity release market has ever seen for interest rates.

 

If you are looking for an equity release scheme whereby you can afford to make repayments of capital &/or interest in order to protect you children’s inheritance, then the Hodge Flexible Lifetime Mortgage scheme should be of interest.

 

For further information or to request a Hodge quotation, please visit our dedicated Hodge Lifetime deals page by clicking here.

Alternatively, you can speak to one of our Hodge specialists at Equity Release Supermarket by calling our equity release advice line on 0800 678 5159.

 

Why Are You Still With Papilio UK Equity Release?

Friday, February 15th, 2013

Are you one of those lifetime mortgage borrowers who were originally with Northern Rock but, since March 2012, have seen the ownership of your mortgage transferred to Papilio UK Equity Release Mortgages Ltd, a subsidiary of J P Morgan?

 

If so, do you realise that you are probably paying interest at more than 1.3% higher than rates charged by some other lifetime mortgage lenders? And Papilio UK Equity Release no longer allows you to take further loans from the equity in your home, an option Northern Rock originally considered!

 

If so, you could make considerable savings by the simple process of remortgaging to another regulated lifetime mortgage lender. With equity release schemes now in the prime of their life, now has never been a better time anyway to consider an equity release remortgage.

 

For example, assuming you remortgaged an equity release balance of £50,000 onto a fixed rate of 5.60% instead of the 6.99% currently charged by Papilio UK, after 10 years you could save yourselves, and your beneficiaries approximately £12,000 in interest charges.

 

Competitiveness & Flexibility of New Plans

Depending upon the value of your home, many new lenders will allow you access to further loans either immediately, or by providing a cash reserve to draw upon at your discretion. Drawdown lifetime mortgages now account for the majority of equity release schemes taken out and provide best advice for those retirees that only need a smaller upfront lump sum, but may require additional cash in the future.

 

Modern day lifetime mortgage schemes have surpassed the rigid plans of old. Since Northern Rock (aka Papilio Equity Release) withdrew providing equity release mortgages the market has seen diversification unseen before. With the advent of interest only lifetime mortgage schemes, we have experience of people actually switching from old roll-up lifetime mortgage plans. Where they feel the balance has reached a point whereby they no longer want it to increase any further, they can switch to an interest only lifetime mortgage. This option may never have been available in the past.

 

A free initial comparison offer

Should you have a Papilio UK equity release mortgage then you will undoubtedly be paying over the odds on your interest rate. Many people contact us who hold an existing Northern Rock mortgage and ask for the Papilio UK equity release mortgages ltd telephone number to contact them.  Equity Release Supermarket has advisers that are experienced in analysing whether it would be in one’s interest to switch equity release schemes.

 

As acknowledged specialists, Equity Release Supermarket has given objective advice to increasing numbers of applicants seeking to remortgage from Papilio UK and we have guided them painlessly through the remortgage process.

The switch analysis will take into account the set up costs of the proposed new equity release mortgage. These costs can be lower than anticipated, especially as J P Morgan/Papilio equity release have indicated in the past that they will waive early repayment charges.

 

Allied to the current practice of many lenders offering free valuations and paying “cashbacks” of upto £1000, then equity release companies such as Aviva can offer a new safe haven for your mortgage. By providing a smooth transition in the equity release application process you can seamlessly transfer you Papilio (Northern Rock) equity release plan to a more competitive rate benefitting yourself & beneficiaries in the long run. Aviva are currently offering rates to Equity Release Supermarket customers starting at 5.57% annual.

 

If you want to join those who have successfully made the transition from Papilio UK then please do contact Mike Vicary of Equity Release Supermarket, on 07795 195302 for a free initial consultation.

 

Looking to Switch Lifetime Mortgage Schemes Could Prove Prudential

Sunday, February 10th, 2013

With lifetime mortgage schemes becoming increasingly commonplace and new borrowers on the increase, we look at how existing equity release customers could still benefit by reviewing and possibly remortgaging their existing plans.

 

Today, the equity release market has expanded to include a variety of different products. At the same time, interest rates today also tend to be more favourable to those a few years back. In light of this, those with existing lifetime mortgage schemes need to weigh-up the pros and cons of shopping around and possibly swapping or switching lifetime mortgage schemes.

 

Older lifetime mortgage schemes from the likes of Norwich Union, Northern Rock, Mortgage Express and Portman Building Society could have equity release interest rates of 8% and upwards if taken out in the halcyon days. However, times and products have all changed, and for those who thought their equity release was a ‘one-off’ event, could never have been more mistaken.

 

Like any conventional mortgage, equity release plans can also be moved to a new provider should the terms be more favourable. There could be a number of reasons to remortgage an older equity release scheme: –

  1. Lower interest rate
  2. Further borrowings
  3. Swap to a more flexible plan

 

Looking at these individually, we can explain the circumstances why many more people are now remortgaging their old lifetime mortgage plans.

 

Lower Interest Rate

The major factor to the expense of lifetime mortgages is the interest rate. Due to the annual compounding effect of the interest, then by cropping 1-2% off the current interest rate can literally save £1000’s over the remainder of the planholders life. This would be most beneficial for the children who will end up with more net equity available upon the death or their parents moving into long term care.

With interest rates from Aviva now as low as 5.57%, by conducting a lifetime remortgage even from an old Aviva capital release plan, would be possible & cost effective. With older lifetime mortgage rates being as high as 8%, the amount that could be saved in interest would be enormous over a long enough period of time.

 

Further Borrowings

It may have been many years since the original tranche of tax free cash was taken and as we know, money these days doesn’t go that far. Therefore, existing lifetime mortgage policyholders may have found this money they took out years ago has dwindled away and are maybe considering their next steps again.

Don’t worry because you have two options – return to your current lender for a lifetime mortgage further advance, or failing that, consider a completely new lifetime mortgage company, if their terms are favourable.

For instance, if your health has taken a turn for the worse then consider an enhanced lifetime mortgage scheme from the likes of Aviva, Partnership or more2life. Having ailments such as high blood pressure, diabetes, heart trouble or even being a smoker can influence a lifetime mortgage terms and conditions. If any of these symptoms exist, then the aforementioned lenders can offer a greater lumps sum than normal; exceptional should you now require maximum fund availability.

 

Swap to a more flexible plan

Lifetime mortgage plans of old were pretty inflexible, being a matter of taking a one-off lump sum and then sitting back thinking ‘job done’. Today’s equity release schemes have been designed with flexibility in mind.

Whereas previously only a single lump was on offer, nowadays with the advent of drawdown lifetime mortgage schemes, you can take a smaller initial amount & leave the surplus in reserve for later. This course of action has its benefits as you will only be charged interest on the capital withdrawn, not on the funds left in the reserve facility. A drawdown lifetime mortgage therefore can provide a cash reserve facility for additional borrowings required in the future. This would prevent you from having the expense of moving schemes again in the future.

A more recent development in the field of lifetime mortgages has been the ability to repay the interest which has not been a function that has previously been available. The interest only lifetime mortgage has seen a boom in sales recently now that retirees can protect their children’s inheritance by making monthly repayments of interest. Therefore, even if you have been on a roll-up scheme, but feel ‘enough is enough’ with the balance reaching its peak to feel comfortable with, you could switch to an interest only lifetime mortgage plan & consolidate the balance.

 

Which lifetime mortgage to swap to

Lifetime mortgage schemes essentially allow you to release some of the equity tied up in your home. The main types of lifetime mortgage schemes are the drawdown lifetime mortgage, roll-up, enhanced and the interest only lifetime mortgage. Lifetime mortgages are loans which need to be repaid once the property is sold.

Clearly, when it comes to equity release schemes, the lower the interest rate on the loan the more you save over the longer term. If you already have an existing equity release loan on your property, switching to a scheme with better interest rates may save you money. However, switching to an equity release scheme with a lower and better interest rate may not necessarily mean that you end up saving money.

 

It is important to find out whether your existing equity release lender has any early repayment charges in place. If you are liable to pay any early repayment penalties, these may cancel out any saving you make by switching. To find out whether switching to a scheme with better interest rates really saves you money, it is important to consider any early repayment charges in your calculations.

Equity release schemes have come a long way since they were first introduced to the market. Today, a much wider variety of products with various bells and whistles can be found. Switching to a more current plan may therefore be beneficial not just from the point of view of interest rates but for flexibility and new features as well.

 

For a free assessment of whether a lifetime remortgage could be beneficial then contact Equity Release Supermarket. With experienced lifetime mortgage advisers attuned to the complexities of swapping plans, they can analyse whether it would be in your best interests, or not to change equity release plans.

 

Call us on freephone 0800 678 5159 today for you free lifetime remortgage assessment or email mark@equityreleasesupermarket.co.uk

 

 
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