Archive for the ‘Halifax Retirement Home Plan’ Category
Thursday, August 11th, 2011
It is with regret that we are notifying all our Equity Release Supermarket enquirers that the Halifax Retirement Home Plan is being withdrawn with effect from the close of business on Wednesday 17th August 2011.
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After this date NO further applications will be accepted onto this scheme.
Therefore, to take advantage of this plan all applications must have been submitted by 8pm on the evening of the 17th August 2011.
There is some good news for existing retirement home plan mortgage customers in that they will remain unaffected & their terms & conditions will remain in accordance with their mortgage deed.
Post 17th August, no further applications will acceptable & this will be the last chance to gain access to this unique pensioner mortgage.
With further options for interest only lifetime mortgages remaining limited, act now to secure a last minute place on the Halifax Retirement Home Plan scheme.
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To make a last minute enquiry call the Equity Release Supermarket team immediately on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: Halifa retirement home plan mortgage, halifax equity release, Halifax Retirement Home Plan, Halifax Retirement mortgage, interest only lifetime mortgage, interest only mortgage
Posted in Halifax Retirement Home Plan, News | No Comments »
Tuesday, August 2nd, 2011
Confusion reigns at a time in life when stability, financial security & freedom to enjoy the fruits of one’s success should be evident. Yes, we are talking retirement, equity release & the increasingly popular Halifax Retirement Home Plan.
We discuss the options available to those already retired or the up & coming baby boomer generation, as they prepare to assess how they are to manage in today’s financial maelstrom.
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For many, & usually it all boils down to lack of financial planning in earlier life; retirement is none of the aforementioned attributes associated with the longest holiday of your life.
We all go through life thinking retirement seems a distance over the horizon. From getting that first job, raising the children & moving up the ranks in the employment world, our lives move forward apace.
But the inevitable will reach us all one day & without foresight retirement could be the biggest challenge in your lifestyle thus far.
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So how should we prepare & how do we invest in our futures to ensure a retirement of fulfilment?
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The spoken word, ‘hope for the best, prepare for the worst’ must have a ring of truth when it comes to retirement planning. It’s a recipe on the menu that’s always put on the back burner & one on the ‘to-do’ list of things that can wait until tomorrow…YOU CAN’T.
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Looking back at that first job is where the seeds should initially be sown. Whether it’s joining that company pension scheme or making your own provision, a pension should be the life jacket for your retirement.
The old adage of the earlier you start a pension the less you need to pay in later, is gospel & with the tax advantages on offer they still represent one of the best ways to build a pot of gold for the future.
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But there are other options now available which represent a safer alternative & more hands on approach such as real estate.
The buy to let market is currently undergoing transformation in the current economic climate, with rental incomes outstripping savers returns on bank & building society accounts. There is also the potential capital appreciation aspect of owning a property which has been a tried & tested route for many over the longer term.
Property is a tangible asset; you have control over how it looks, you can manipulate it & affect its value. The sole aim of these actions is to build asset value & thereby probably without hindsight, can build yourself a ‘retirement vehicle’.
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So let’s see which vehicle will suit your requirements & enable you to navigate down the retirement highway…
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Firstly, the question that needs to be asked is whether an income or capital lump sum is required? Given the fact that most tax free cash requirements are for capital, the options are then narrowed down to affordability in retirement.
The next important consideration is whether one can support the monthly payments of an interest only mortgage, or are finances so tight that no further monthly payments are required throughout retirement. The answer to this will filter us towards the ultimate decision; that is whether the solution is an interest only lifetime mortgage or a roll-up equity release scheme?
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On the one hand you have an interest only mortgage, where monthly payments are required to be maintained for the rest of your life & results in a continuously stable & level balance during the remaining term.
This is in complete contrast to a roll-up equity release plan, which requires no monthly payments whatsoever, but allows the interest to compound & the balance of the mortgage to get larger.
Let’s have a look the features of each option further.
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Roll-Up equity release scheme
- Classified as a Lifetime mortgage, hence no term is specified
- Schemes are regulated by the FSA & are also members of SHIP
- Equity release schemes start at age 55
- No income required for eligibility
- Maximum release is 55% of the property value (with ill-health)
- Credit history is not a major concern to equity release companies
- No monthly payments required
- Increasing balance as the interest is compounded monthly or annually
- Flexibility of drawdown schemes available to take regular cash releases with guaranteed reserve facilities. This ensures future cash availability with no further costs.
- Interest rates are fixed for life
- Reduced, or no inheritance left for the beneficiaries of the estate
- Executors have upto 12 months in which to repay the lender, usually by sale of the property
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Halifax Retirement Home Plan
- Classified as a Lifetime mortgage, hence no term is specified
- Pensioner mortgage & regulated by the FSA
- Starting age is 65, however with enough pension income, over 55’s are acceptable
- Retirement income alone will determine how much that can be borrowed
- The maximum amount borrowed is capped at 75% of the property valuation
- Credit history is checked & any adverse record could result in a declined application
- Monthly payments must be maintained to avoid repossession
- Mortgage balance remains exactly the same throughout the plan term
- Further advance application required to borrow additional funds & will be credit assessed each time for affordability.
- Option of tracker & fixed rates available, initially for a maximum of 5 years. Therefore, no guarantee of the future costs of the monthly mortgage payments.
- Reduced inheritance, albeit a specific amount which the beneficiaries will know the extent
- Beneficiaries have 18 months in which to sell the property, after death or the mortgagors moving into long term care.
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So the winner is?
There is no actual winner in this pensioner mortgage market.
Both schemes have the advantages & disadvantages depending upon one’s retirement finances.
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However, if a good retirement & disposable income is available & future affordability secured, then certainly the Halifax Retirement Home Plan is justifiable for the applicants & more so for the beneficiaries. Nevertheless, it is vitally important that steps are also taken to protect each party to the interest only retirement mortgage in case one applicant dies as the survivor will still need to maintain the monthly payments. Therefore, life insurance should always be considered on the Halifax Retirement Home Plan.
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Alternatively, for those on lower incomes, less of a disposable income & are not too concerned about their children’s inheritance, then a roll-up equity release mortgage could be their preference. The roll-up equity release schemes have no effect on monthly budget & can never result in repossession based on lack of affordability or missed payments.
These schemes can be classed as a ‘mortgage of last resort’ as once all the alternatives have been considered & eliminated. Equity release roll-up can always be the backup plan. Even more so should one default or struggle with the affordability of an interest only lifetime mortgage such as the Halifax Retirement Home Plan, as equity release schemes can be used to clear the Halifax mortgage.
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The following is an equity release tip – to ensure that equity release can act as a safety net, if you are looking to borrow on a Halifax equity release scheme then always consider & keep within the loan-to-value limits of the equivalent equity release scheme rules. If you do this then you have equity release as a fall back to switch to in the future.
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There are many more tips & advice available on this subject, but as always seek an independent financial advisory service such as Equity Release Supermarket who are qualified & experienced in these two specialist fields.
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For help on deciding which type of equity release is best advice for yourself, please contact the Equity Release Supermarket advisory team on freephone 0800 678 5159 or email mark@equityreleasesupermarket .co.uk
Tags: equity release, Equity release calculator, equity release schemes, Equity Release Supermarket, halifax equity release, Halifax Retirement Home Plan, lifetime mortgages
Posted in Advice, Equity Release, Halifax Retirement Home Plan | No Comments »
Thursday, July 21st, 2011
Halifax equity release is a good option for retired individuals who want to live a tension-free lifestyle after retirement. Unlike traditional mortgage plans, Halifax equity release is specially designed for individuals who are looking for home safety along with a better lending choice. This mortgage option can be used to raise equity from your property if you are over age 55 & are now in receipt of retirement income.
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The money raised through the Halifax equity release mortgage can be spent the way you want. So, irrespective of whether you want to go on a holiday, exotic cruise or make home improvements, opting for equity release can be great at meeting your financial needs.
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With inflation constantly on the rise & budgetary constraints we are all facing currently, retired individuals also are facing a lot of problems coping with their finances. However, there are certain requirements one needs to fulfil in order to qualify for Halifax equity release schemes. For instance, applicants must be above 55, retired and possess property of their own. The amount of equity one can release through this scheme depends on the age, pension income & the market valuation of their property.
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So, if you are planning to go for Halifax equity release, it is always better to ensure that your property is well-maintained. Additionally, if you have a current mortgage on your property this will need to be repaid on competion of your new Halifax retirement mortgage. This will be paid for from the proceeds of the Halifax application & will be redeemed by the solicitor acting on your behalf. Therefore, whenever the interest only mortgage calculations are made the existing mortgage figure should always be taken into account.
The good news however, is that if you do have a current mortgage, no matter the size, & remortgaging to the Halifax Retirement Home Plan then there are some excellent deals available. As of July 2011, Halifax remortgages will provide a FREE valuation, FREE standard legal fees & on some products we can even obtain NO application fee.
As there are different Halifax equity schemes available today, you must carefully research your options. This way, you can go for one which suits your needs & receive advice from an independent equity release adviser who can provide you with best advice from the whole of the market.
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If you wish to discuss the current Halifax Retirement Home Plan deals via Equity Release Supermarket contact the team on freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Halifax, halifax equity release, Halifax equity release schemes, Halifax Interest Only Mortgage, Halifax Retirement Home Plan, Home Retirement Plan, interest only mortgage
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Sunday, June 26th, 2011
Ever wondered what you will do after retirement? Taking a cruise around the world, completing those home improvements you always intended to make or enjoy helping & seeing the grandchildren would be a few of the options that many of us have thought about. One thing that we need to consider is our financial situation and market volatility after we retire. The money earned from our pension is not usually always enough to live on.
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We therefore need to look at how this pension income can be supplemented in a manner that can utilise one’s assets. An increasing common method is retiree’s opting for the Halifax Retirement Home plan & this has proved to be a wise & life changing option for many.
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So what is the Halifax Retirement Home Plan?
In essence the Retirement Home Plan is a way of providing some extra cash for pensioners. It provides low cost mortgage finance for people who have retired. In other words, it is different from equity release as it works in a similar way to an interest only mortgage scheme. Therefore, the terminology used to describe this product is an interest only lifetime mortgage.
You can use the money released to make improvements to your home or use the money to buy the car of your dreams. The Halifax Retirement Home Plan is an income based scheme, which includes income from pensions, disability benefits & in certain circumstances from rental income.
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Even though the eligible age required to qualify for the scheme is 65 years, this age can be negotiated upon as the scheme is based on your method of income. Therefore, flexibility can be established if you are over 55 years old & retirement income is already being drawn. There is no upper age limit on this Halifax equity release scheme. In fact we have recently completed an application for a client who is age 93 attained!
There is a minimum limit of £15,000 set on the amount which is released for the plan, but the maximum amount varies due to the affordability of an interest only mortgage calculation.The affordability calculator will require the input of all retirement incomes for both parties in association with amount required & the applicants credit rating. The result provides accurate figures as to how much can be potentially borrowed on this scheme. The overall maximum would always still be 75% of the property value & this loan to value can never be exceeded, even if income would normally calculate beyond this.
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Unlike equity release, the Halifax Retirement Home Plan requires a regular monthly payment of interest. The balance usually always remains the same. as long as the monthly payments are met on time. This compares favourably with equity release schemes where the balance increases over a period of time.
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Halifax interest rates currently start from as little as 2.44% on their 2 year tracker deal resulting in a Halifax Retirement Home Plan mortgage of £50,000 costing only £101.67pm (4.1% APR)
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The Halifax Retirement Home Plan is a great way to obtain tax free capital that you have worked long & hard for thus resulting for many to a long & happy life.
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To find out if you qualify, please call us today on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: Halifax, halifax equity release, Halifax interest rates, Halifax Retirement Home Plan, interest only lifetime mortgage, interest only mortgage, lifetime mortgages
Posted in Halifax Retirement Home Plan | No Comments »
Wednesday, June 22nd, 2011
The amount of equity you own is the term used to describe the value of a home less any mortgage or secured pending on it. Equity release allows you to free up this money tied up within your home.
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The equity release process will allow you to receive a tax free, lump sum of capital allowing you to spend it in whatever way that you choose.
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An obvious disadvantage is that you will not be able to hand down all of your property to your offspring. Nevertheless, you do get to live out the remainder of your life in your home, rent free or till you move into elderly care.
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If you are considering an equity release scheme, the best way to get started would be to approach an expert. Some organisations which provide equity release schemes also provide a free consultation, so remember to take advantage of their services. Some research of the advisor would be of benefit as they must be regulated by the FSA (Financial Services Authority) & have an individual registration number with them. The equity release adviser should therefore be found on the FSA website register.
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Ensure they are independent, which means they are free to deal with ANY equity release provider in the market. So ask. Some companies purport to be whole of market, however upon closer analysis they only deal with a handful of companies. You may therefore be missing out on a beneficial feature of an equity release scheme that they do not have available. This could save you £1000′s in the long run & could prove costly if the wrong equity release plan was chosen.
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Your advisor will let you in on all the vital details regarding the procedure. This will be after the equity release adviser has collated all the necessary facts regarding one’s current situation. Guarded with this information, & any soft facts provided such as ‘how important is that you leave part or all of your property to your beneficiaries?’ will be asked. Also income & whether you are in receipt of means tested benefits is important as this will reflect on which equity release schemes are advised upon. The equity release consultant can then document & record this stage of the lifetime mortgage process.
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Once an accurate financial picture has been ascertained & observed the clients objectives, the equity release adviser can then discuss the mortgage options available. These would include an explanation of the various schemes available to suit. Included in this would be roll-up equity release schemes, home reversion plans & interest only lifetime mortgages such as the Halifax Retirement Home Plan or the Stonehaven Interest Select.
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You do not have to give them an instant decision; after all, going for an equity release scheme is a big decision and something which should not be rushed into.
Upon presentation of the equity release advisers recommendations a Key Facts Illustration must be offered to you. This would include a summary of the scheme in principle, costs & charges, future balance & the commission payable by the lifetime mortgage providers. This is quite a comprehensive overview of the scheme & covers the finer details, as well as the main features, such as the no negative equity guarantee & early repayment charges etc.
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Once you have made your decision, all you have to do is simply call your advisor and give them the go ahead. They will have all your paperwork taken care of, contact your solicitor and keep you updated about everything, right to the time that you get your money released.
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A professional & courteous adviser will confirm the funds have been released & offer any after care service in the future; for example when additional funds are required such as on a drawdown equity release scheme.
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As a company Equity Release Supermarket keep contact with its clients to advise on new products & interest rates in the future as it is important to keep abreast of the market as & when more competitive products become available.
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Independent & award winning equity release specialist Equity Release Supermarket offer all the above benefits & quality of service that the testimonials at the bottom of the home page illustrate.
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To discuss your options in the release of equity from your property call freephone 0800 678 5159 today or alternatively complete our contact form & one of our advisers will be in touch
Tags: drawdown equity release, equity release, Equity Release Adviser, equity release schemes, equity release solicitor, home reversion, independent, Independent equity release advice, interest only mortgage, lifetime mortgages, No negative equity guarantee
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Friday, June 17th, 2011
Equity release is used as a term for schemes that help a homeowner to secure a good amount of money from their main residence. These schemes provide homeowners with an option to use their property to release money. It becomes hard for people who retire after a certain age and do not have funds to support their needs. Equity release schemes provide an option for people who live on pensions and are unable to support themselves or maybe wish to increase their lifestyle options with a new car or holidays. It therefore helps provide an extra flow of money to fulfil their needs & retirement enjoyment.
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Equity release has become very popular among citizens who are over the age of 55. There are an increasing number of retirees opting for these equity release solutions. Equity release UK schemes offer retirees an opportunity to generate money from their property, either a lump sum amount, timely earnings, or in some cases, both. Retirees can remain living on their property unless they decide to move out at which point the equity release plan becomes repayable. The equity release providers will usually require repayment of the balance within 12-18 months by the beneficiaries. This gives the executors of the estate plenty of time to achieve the best sale price on the property to cover the debt & maximise the inheritance for the beneficiaries.
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The value of your property and your age are the key factors in the data used in equity release calculator formula. There is no age limit as far as equity release is concerned. The older you are, the more you can generate out of your property. This scheme is accessible for people who are over fifty five years and own their property which usually should be of standard construction & freehold, or leasehold with more than 75 years left remaining on the lease.
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Halifax Retirement Home Plan is one such scheme which helps people to extract money out their property. It is a type of interest only equity release lifetime mortgage plan where the borrower pays a sum of money to the lender on a monthly basis. It is a useful and easy plan which suits the needs of all perfectly. As mortgages for pensioners seem to be difficult to come by, the Halifax equity release scheme has become a breath of fresh air to many people in retirement. They can be safe in the knowledge that the balance will not increase as long as the payments of monthly interest are maintained.
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This is an interest only lifetime mortgage which means there is no set term & these equity release schemes will run for the rest of their lives. As long as too much equity is not taken from inception on the Halifax Retirement Home Plan then if there comes apoint in the future that the monthly payment should cease, then repayment by a roll-up equity release plan could always take effect.
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There are many options today that assist pensioners to take equity release from their property, however to ensure which scheme is the correct one for your circumstances contact a professional & qualifies advisory service.
Award winning Equity Release Supermarket have advisors local to you who can provide quality & friendly service to guide you through the equity release decision making process.
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Call the equity release team today on 0800 678 5159 for your free initial consultation.
Tags: equity release, Equity Release Adviser, Equity release calculator, equity release schemes, Equity Release Supermarket, halifax equity release, Halifax Retirement Home Plan, lifetime mortgage schemes, lifetime mortgages, pensioner mortgage, Roll up lifetime mortgage
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Sunday, May 29th, 2011
The Halifax equity release scheme is an interest only lifetime mortgage plan. It is specially developed for retired individuals to boost their retirement standard of living. With this type of scheme, the outstanding balance remains unchanged throughout the plan tenure. The applicant only needs to pay interest regularly to the lender.
Traditional roll-up equity release schemes do not require the applicant to make interest payments. However, the interest keeps rolling up over the tenure period. This means that the outstanding loan keeps rising all the time. With the present interest rates, the loan amount will keep doubling after approximately every 10-11 years dependent upon the equity release interest rate. This means, if you have a loan of £10,000, after 10-11 years, you will owe £20,000.
Retired individuals, who can afford to make monthly repayments from their state benefits or pension, should opt for a Halifax equity release plan. While considering opting for equity release, it is important to get the right advice from the professionals. As professionals have the required knowledge and expertise, they can help you get the right scheme that will cater to your needs.
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Why do people opt for a Halifax equity release plan?
The Halifax equity release scheme, being an interest only mortgage plan for pensioners, does not require any form of repayment. This is also one of the most exclusive features of the Halifax equity release plan. With this kind of scheme, your mortgage is automatically allocated for a term of 40 years. However, should you live longer than this period then this lifetime mortgage plan will continue until death or the last person has moved into long term care.
It is due to these reasons that the Halifax equity release scheme has become extremely popular amongst retired individuals.
Contact the mortgage desk on 0800 783 9652 or email admin@equityreleasesupermarket.co.uk for the latest rates & information.
Tags: equity release, Halifax, Halifax Retirement Home Plan, Home Retirement Plan, interest only lifetime mortgage, interest only mortgage, lifetime mortgage schemes, lifetime mortgages, mortgages for pensioners, pensioner mortgages
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Tuesday, May 17th, 2011
It is of paramount importance that you make sure you have a steady source of income or enough capital after you retire to maintain a comfortable standard of living. You will want to be closer to your family, probably take more holidays with them and spend some quality time enjoying yourself. All this needs money, and the Halifax Retirement Home plan can give you exactly that.
Time tested schemes
Though the financial services authority has classified it as a lifetime mortgage, the Halifax retirement mortgage equity release scheme is an interest only loan. It is offered to you by one of the UK’s leading financial organisations.
Terms and conditions
Before you decide upon any equity release scheme, you should be aware of its features. Always read the offer document carefully and find out all the clauses, terms and conditions. Since your home is one of the most valuable assets you will own, these schemes can provide you with a significant amount of money.
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For the latest Halifax equity release rates click here.
Alternatively to establish eligibility, call the team on 0800 783 9652 for a no obligation discussion.
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Tuesday, October 26th, 2010
Planning for your retirement in essence should start in your earlier years; however as we know life unfortunately doesn’t always go to plan!
Here we discuss the merits of the niche interest only mortgage product; the Halifax Retirement Home Plan which is becoming an increasingly popular way of providing mortgages for pensioners.
Since writing my original article on the Halifax Equity Release plan (click here to view), interest has certainly been escalating. The main reason being that people in retirement are unaware of their mortgage options once they finish work. But life must go on.
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What is the history of the scheme?
Established in 1984, the Halifax Retirement Home Plan was initially available through the Halifax branch network and was developed to provide low cost mortgage finance for the retired & elderly.
However, under the Financial Services Authority review of the lifetime mortgage market in 2006, Halifax withdrew the branch license to offer lifetime mortgage advice.
Therefore, the responsibility for providing advice on the Halifax Retirement Home Plan was left completely with lifetime mortgage qualified advisers including independent specialists Equity Release Supermarket.
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So what is the Halifax Retirement Home Plan?
In simple terms the scheme is an interest only mortgage for people who are retired & facilitates the release of equity tied up in the property. The release of funds can be for almost any purpose including:-
- debt consolidation including paying off credit cards/loans or mortgages
- holidays including cruises or just day trips
- replacement car or caravan
- home improvements
- gifts to the children providing a deposit for house purchase
- supporting your lifestyle through retirement.
Qualification for the Halifax equity release scheme is based on income. Halifax will only accept non-earned income & this must be in the form of: -
- Occupational pensions
- Private pensions such as personal pensions or retirement annuities
- State pensions
- State benefits including pension credits & disability benefits
The stated minimum age for the Halifax Retirement Home Plan is 65. However, as long as there is no earned income & justification for the size of the mortgage can be based solely on the above income, then ages lower than 65 can be achieved.
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How much can be released?
The minimum release on the Halifax Retirement Home Plan is only £15,000. However, to establish the maximum release possible would require the use of an affordability calculator.
Halifax does not base the size of release on a multiple of income, but whether the interest only mortgage can be afforded through retirement.
The data Halifax requires for this calculation includes income, credit status, number of applicants & credit commitments outstanding after the new mortgage commences.
This procedure can be carried out by qualified advisers such as Equity Release Supermarket & is an accurate assessment of the potential borrowings on this scheme.
The overall maximum release available can never be more than 75% of the valuation of the property. Therefore, should the affordability calculator show a figure greater than this, it will still be capped at 75% of the property value.
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Does Halifax require a repayment vehicle?
The answer to this is NO.
As the Halifax Retirement Home Plan is an interest only mortgage for pensioners, no form of repayment is required.
In contrast, the mainstream mortgage market is actually tightening its grip on new interest only mortgages, whereas this Halifax equity release scheme will still accept repayment by virtue of the eventual sale of the property. This would be on death of the surviving partner, moving into long term care or earlier property sale.
The term allocated to the Halifax home retirement plan is 40 years which should provide ample time for it to run for the rest of one’s life! This removes any concern about having to find the funds to pay off the Halifax scheme during your lifetime.
Most mortgage providers will only accept a mortgage term upto age 70-75 or in rare instances age 85. However, this only buys time as eventual repayment would be required. However, this scenario may still be suitable should one be downsizing at a predetermined date in the future.
The Halifax Retirement Home Plan therefore removes any element of capital repayment risk.
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So what interest rates & products are available?
Dependent upon whether you are a new or existing Halifax customer will determine the interest rates & products applicable.
Currently, the better deals are offered to new customers as they have access to the whole mainstream Halifax product range. This is a great advantage, as there is full access to current low rate tracker & fixed rate products. Click here for the latest interest only mortgage rates…
These include deals such as the current 2 year tracker rate at just 2.59%. Based on borrowing £50,000 this currently would only cost £107.92pm (3.6% APR).
Additionally, if remortgaging from another lender then there is the benefit of a free valuation & free standard legal fees, which reduces the set up costs significantly. I have experienced clients who have just £800 outstanding on a mortgage or even documents kept in deed store that qualified for this free remortgage package!
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What if I already have a Halifax mortgage?
The good news is you can still apply for the Halifax Retirement Home Plan. However, the situation here requires completely different advice & procedure. Should you wish to merely transfer onto the Retirement Home Plan then you can port over your existing rate which can be good news if on a standard variable rate. However, if you wish for additional borrowing then the process becomes a little more complicated.
The product range for existing Halifax customers is rather sparse & with the best deals starting currently at 4.99% fixed, hence there is a distinct advantage for new customers.
Such applications will be paper based & therefore processed manually which involves more human input. Experience has shown this results in a different underwriting approach to the process undertaken on new applications.
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Can I pay off the Halifax Retirement mortgage early?
The simple answer to this is YES.
Unlike equity release plans where penalties can potentially apply for the rest of your life, the Halifax interest only mortgage will only have early repayment charges for the initial product term. Therefore, should you have opted for the 2.59% 2 year tracker product discussed previously, the penalties would only apply for the first 2 years. After, this 2 year period the mortgage would then revert to the Halifax standard variable rate, currently 3.5%.
However, before the initial rate expires you will have the option to take out a new product from the Halifax mortgage range available at that time.
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So what is the advantage of the Halifax Retirement Home Plan over an equity release scheme?
The obvious answer to this is the fact that the Halifax mortgage is interest only & therefore requires a monthly payment of interest. The balance will always remain the same throughout the term of the plan. E.g. borrowing £50,000 today, will result in £50,000 requiring repayment once the house is sold.
In contrast, equity release schemes do not require any monthly repayment & therefore the balance will increase over time. Roughly speaking the balance of equity release schemes will double every 10/11 years.
From a beneficiary’s point of view, the Halifax interest only mortgage will guarantee an inheritance, as the final balance of the mortgage will always be known. This would be favourable for people who want to ensure the children definitely receive an entitlement to their parent’s inheritance.
With all this information & options available it is more important than ever to receive specialist advice to obtain the best deal for your personal circumstances.
Equity Release Supermarket can provide independent advice on both equity release schemes & interest only mortgages for pensioners.
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For further information or to request a quotation, please ring Mark on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk.
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Tags: Halifax, Halifax Home Retirement Plan, Halifax Retirement Home Plan, interest only mortgage, interest only mortgages in retirement, lifetime mortgage schemes, lifetime mortgages, mortgages for pensioners, pensioner mortgages, retirement mortgages
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Sunday, August 1st, 2010
A unique, yet largely unknown equity release product – the Halifax Retirement Home Plan is increasingly being recognised as the answer to a financially secure retirement for the over 60′s.
Here we explain the process which leads to identifying whether you qualify for the Halifax Retirement Home Plan.
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Unavailable through the Halifax branch network, this lifetime mortgage can only be recommended by suitably qualified lifetime mortgage advisers such as Equity Release Supermarket.
Using their experience & knowledge, they are required discuss your objectives & using their independent financial status, can research the whole of the mortgage market to find the best deal for you.
Initially, the adviser will gather all relevant information necessary to understand your current situation including: -
- applicants – age & income
- liabilities including mortgage, loans & credit cards
- mortgage requirements – amount & type of product
- credit history
This information will enable the adviser to calculate whether you will qualify for the mortgage required.
Prior to this he will provide a key facts illustration (KFI) which outlines the particular product you are looking to apply for & explains its costs & features.
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The basis of qualification initially is the Halifax Retirement Home Plan calculator, which acts as a guide as to whether the case qualifies on an affordability level.
This will take into account total incomes including: -
- State pensions
- Occupational & private pensions
- Rental income
- Pension credit
- Disability living allowance (60%)
- Carers allowance (60%)
At the same time it will also need any outstanding monthly liabilities including: -
- Mortgage & other secured loans
- Personal loans & hire purchase agreements
- Credit cards
Using this data & assuming a credit worthiness commensurate with the applicants previous repayment history, the Halifax Retirement Home Plan calculator will advise a recommended mortgage figure.
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As this product is only available to people already retired, the Halifax Retirement Home Plan will not take into account employed or self employed incomes.
The scheme is not designed for people under age 65 & having earned income.
*However, the Halifax Retirement Home Plan does have flexibility on these issues, so always check eligibility first with Equity Release Supermarket on 0800 783 9652.
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Subject to the calculator confirming sufficient capital can be raised, then the next steps can be taken…
This would involve the Equity Release Supermarket adviser completing a ‘decision in principle’ with Halifax. This is a means of ‘dipping your toe’ in the water to ascertain whether in principle the application can be acceptable to the Halifax.
Details required are name, address, income, existing liabilities, mortgage amount & the product required e.g. tracker or fixed rate?
Upon submission of this information Halifax will assess this & credit score & complete a credit check on the applicant(s).
An online decision will be made by Halifax as to whether a full application can then be completed.
If successful, then conversion from decision in principle to full application can be made.
From there the payment of any fees are made with the valuation & solicitors then being instructed by Halifax & the case can continue to successful completion.
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All processing is now undertaken on the new Halifax online mortgage application system, which provides instant feedback on case criteria. This has improved processing times.
Completion times for the Halifax Retirement Home Plan are now ranging from application to receipt of funds of between 3-4 weeks.
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If you have any further questions regarding eligibility on this or other equity release schemes, please contact Mark on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
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For additional information on the Halifax Retirement Home Plan & rates available visit our compare deals table.
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Tags: Decision in principle, equity release, Halifax, Halifax mortgage calculator, Halifax Retirement Home Plan, Home Retirement Plan, interest only mortgage, lifetime mortgages, mortgages in retirement
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