Archive for the ‘News’ Category
Friday, July 2nd, 2010
Good news is back in the equity release market as Home Reversion Plan provider Home & Capital increase on two fronts the amounts they will lend on their products.
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Recently there has been a reduction in the number of equity release schemes available in the market which has resulted in fewer options for those in need of cash for their retirement plans.
Therefore news that Home & Capital are reversing this trend with its home reversion plans is excellent news.
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The latest calculations now show that for a male aged 70 the home reversion rate has now increased from 43.25% to 47%. That’s a healthy increase on the amount Home & Capital will lend & represents a good increase on the equity release scheme funds clients will receive.
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Secondly, all Home & Capital reversion plans have had an increased the ceiling on the maximum amount customers can raise.
This has now risen by over 41% from its previous maximum of £85,000 upto £120,000.
The maximum percentage of the property you can sell with Home & Capital home reversion plans is 95%.
Existing offers on the Home & Capital reversion plans will continue. This includes no arrangement fees & a special offer of a free valuation on all applications made before 31st July 2010.
The minimum age for the home reversion plans is 65+.
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These increases come at a time when retired people who wish to consider equity release are being hit on most sides.
Lower interest rates on their savings coupled with the impending increase in VAT will all affect the elderly population greatly over the next 12 months & beyond.
Therefore, there is some light at the end of the tunnel for the elderly who need financial assistance & a supplement to their capital or to boost income.
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With property values showing a steady, yet unspectacular increase since the start of 2010 many people in retirement can be sitting on a large amount of equity that can be utilised.
People are increasingly beginning to embrace the idea that their property is a legitimate asset that can be used to release equity - either via downsizing or via equity release schemes.
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To discuss your equity release requirements further please contact Equity Release Supermarket on 0800 783 9652 or email - mark@equityreleasesupermarket.co.uk
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Tags: Add new tag, equity release, equity release schemes, free valuation, Home & Capital, home reversion, home reversion schemes, lifetime mortgages, no application fee
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Sunday, June 6th, 2010
This article provides information on the latest interest rates & changes that Aviva are making to their product range.
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With the current shortage of equity release lenders, additional pressures are mounting on the remaining companies providing equity release schemes.
These lenders are now experiencing larger than normal business volumes as the number of providers has dwindled over the past 12 months. As a consequence some servicing issues are of concern, of which the biggest provider is now addressing.
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Of these equity release companies; Aviva are the first to change their lending criteria & this post provides details of this in advance.
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Come the 14th June, Aviva will be increasing their interest rates & lowering their loan-to-values (LTV) & details of these changes are detailed later in this article.
This is a negative step for the market given that Aviva’s Maximum Cash Release plan offers the highest cash release in the lifetime mortgage market at present.
Therefore, clients looking for financial relief by releasing the maximum possible after this date now have a reduced cash sum available. Couple this with Aviva’s recent reduction in loan-to-values on flats & maisonette’s & there is a definite swing away from higher loan values.
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Aviva will now only lend on 75% of property values on flats & maisonette’s, which is a dramatic move away from lending on these abodes. Couple this with the reductions in loan-to-values which are being announced on the 14th June, means a significant shift in their lending criteria.
This will affect in particular clients looking at debt consolidation or potential other requirements that demand the maximum possible.
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Equity Release Supermarket as independent financial advisers have witnessed firsthand the demand for larger advances this year alone. Predominantly, this has been for debt consolidation purposes whereby clients in retirement are now experiencing income shortfall issues as their investment returns have fallen significantly.
This has resulted in financial pressures meeting these monthly liabilities including mortgage payments, personal loans or more commonly, credit card debts.
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Nevertheless, there are fresh signs within the market indicating that external forces are construing to develop new plans & ideas to drive this stagnant market forward.
We heard last week that More2 Life is introducing an impaired life roll-up equity release scheme. This is welcoming news for the market & hopefully the sign of things to come.
In the meantime the current crop of lenders can dictate in a market having little competition from other providers.
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Part of the result of this is Aviva’s impending equity release scheme changes.
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Aviva have announced an increase of 0.1% to the interest rates for new business on the Lifestyle Flexible Option, Lifestyle Lump Sum and Lifestyle Lump Sum Max.
Equity Release Supermarket receive an exclusive interest rate lower than that offered directly by Aviva themselves.
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The new Aviva interest rates wef 14th June are therefore 6.70%, 6.55% & 7.40% respectively. On paper this doesn’t represent a large percentage increase; however given the roll-up nature of these products, this will result in £1000’s difference in the future balance.
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Additionally, Aviva equity release are reducing the loan-to-values on the Lifestyle Lump Sum Max by 2% for customers aged 60 or below, and by 1% for those over 60.
Even with this decrease, they currently still offer the best LTV scale in the market on all properties (apart from flats & maisonettes).
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The LTV rates for the Lifestyle Flexible Option and Lifestyle Lump Sum will stay the same.
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Example LTV’s on the Lifestyle Lump Sum Max are now: -
Age 55 - 19%
Age 60 - 23%
Age 65 - 29%
Age 70 - 35%
Age 75 - 40%
Finally, there are transitional arrangements in place which anyone considering the Aviva equity release schemes should be aware of;
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Applications on the Lifestyle Flexible Option, Lifestyle Lump Sum and Lifestyle Lump Sum Max dated prior to 14th June and received by the 18th June will receive the old interest rates. Also, any Lifestyle Lump Sum Max applications will be on the old LTV scale.
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Applications on the Lifestyle Flexible Option, Lifestyle Lump Sum and Lifestyle Lump Sum Max dated before 14th June and received after 18th June will receive the new interest rate. Lifestyle Lump Sum Max applications will be on the new LTV scale.
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Applications dated after 14th June will receive the new interest rates. Lifestyle Lump Sum Max applications will be based on the new LTV scale.
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To request an Aviva illustration or further advice on any of the issues discussed above, please contact Mark Gregory on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
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Tags: Aviva, Aviva Lifestlye Lump Sum Max, Aviva Lifestyle Flexible option, Aviva Lifestyle Lump Sum, equity release, Equity release interest rates, equity release schemes, lifetime mortgages, loan to value, Roll up lifetime mortgage
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Monday, April 12th, 2010
Prudential equity release schemes were withdrawn on 31st December 2009, however the application period was extended in order for pipeline cases to reach satisfactory completion.
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However, this period was only extended until 31st March 2010 & Prudential invoked strict guidelines as to their final outcome.
Initially it seemed the 3 month extension seemed quite generous as most equity release cases should normally complete within a 6-8 week period.………………………………………………….
However, in certain circumstances delays may be incurred which may not have been apparent from the outset. It is becoming inceasing apparent that clients are now experiencing scenarios resulting in this deadline being missed.
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One example such example is aligned to the fact that a previous charge may have been placed on the property; often many years ago.
As an equity release company will not permit any other charge being present on the property, then this previous charge must be removed.
The solicitor must therefore include this procedure in the legal process & thus could result in considerable delays in finding who originally put on the charge.
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Over the past decade, many financial institutions have changed name, been taken over or even ceased trading. It can therefore prove difficult for the solicitor to trace the original source of the charge & then getting this removed in order for the equity release to complete.
Nevertheless, a solicitor of experience in these matters would seek to obtain proof from the subject lender to prove the charge still exists. If they are unable to do this then the lender must remove the charge from the land charges register & subsequently the equity release can proceed to completion.
However, from experience this period of dialogue between lender & solicitor can take time, cost & has resulted in the Prudential application being cancelled.
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Obviously, this Prudential deadline has now passed & it is become evident that clients have now become stranded & out of pocket given if their application had not completed by 31st March 2010.
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All is not lost.
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Equity Release Supermarket are increasingly assisting customers left stranded & financially out of pocket by the Prudential. Client fees that have been paid already could include valuation fee & solicitor’s fees for work incurred upto the cancellation of the Prudential application.
We are able to take over from where the Prudential left off & with liaison with the solicitor concerned, can take over the case, find an alternative lender & endeavour to complete quickly with the existing information.
In many cases we are able to provide reduced fees in setting up the new application.
This is due to Equity Release Supermarkets ability to obtain free valuations, reduced interest rates & cashback deals that will go considerable distance in alleviating some costs already incurred.
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If you have experience of the Prudential cancelling your equity release application & would like to explore your options with transferring to a new lender, please contact Mark Gregory on
t: 0800 783 9652 or
e: mark@equityreleasesupermarket.co.uk
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Tags: cashback, equity release, equity release schemes, Prudential, Prudential deadline expired, Prudential Equity Release, Prudential Lifetime Mortgage, Prudential offer expiry, Prudential Offers, reduced interest rate, Roll up lifetime mortgage, solicitors, solicitors fees, valuation fee
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Wednesday, March 31st, 2010
Due to the increased volume in quality equity release leads being generated, Equity Release Supermarket are now looking to expand its adviser roles to encompass a qualified & experienced industry professional.
Job Overview
We are looking for an experienced Equity Release Adviser to join our practice on a self employed basis. Excellent lead generation is provided via our innovative website; however an element of self-generated business is to be expected.
Full admin and IT support will be provided.
Approached with the right attitude and self motivation, the position is highly rewarding with realistic targets and uncapped earnings.
Duties and Responsibilities
Main duties include contacting clients from leads provided, to arranging face-to-face or telephone appointments. Also, prospecting for self generated business from your own client bank or building professional relationships will be expected.
Skills / Qualifications / Experience Required
The ideal candidate will have gained CF1, CF6 and ER1 or equivalent, will be a positive and enthusiastic industry professional with a proven track record in a regulated environment.
For further information, please contact Mark Gregory on 0800 783 9652 or email your CV to mark@equityreleasesupermarket.co.uk
Tags: Equity Release Adviser, Equity Release Consultant, Equity Release Jobs, Equity Release Leads, Equity Release Vacancies
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Wednesday, March 31st, 2010
Andrea Rozario, chief executive of SHIP, has stated that the Government should assist in helping to raise more awareness of equity release as a real option for the retired population.
She commented on yesterdays Government white paper on elderly care, “SHIP welcomes the Health Secretary’s white paper on social care. With an ageing population and pensions failing to cover the costs of elderly social care, it is a problem that does, and will affect us all and needs to be addressed urgently”.
Equity Release schemes therefore can have an important part to play.
A vast majority of homeowners now realize their home is their most valuable asset and equity release could be a serious consideration in assisting financial planning into retirement.
In addition…
“The current system sometimes places elderly people in the position where they must sell their home to pay for long-term care that they may require. By limiting the number of years that the elderly will have to pay for residential care to just two, the suggestions in the white paper may be a step towards combating this problem.”
For further advice on how lifetime mortgages or home reversion schemes can assist with care & retirement planning issues please contact Mark Gregory on 0800 783 9652 or
e: mark@equityreleasesupermarket.co.uk
w: http://www.equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, government white paper, home reversion, lifetime mortgages
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Thursday, March 11th, 2010
Stonehaven, the innovative equity release lender that sourced its funding from Santander is the latest provider to withdraw from the lifetime mortgage market.
Stonehaven have now become one of many finance houses to pull back from the sector & whom say the move is hopefully only temporary & may return to the market when funding improves.
After the shock withdrawal of Prudential at the end of 2009, Stonehaven was one of only a number of remaining providers including Just Retirement, Aviva & LV= who expressed commitment to the sector.
Georgina Smith, sales and marketing director at Stonehaven, said it has been forced to suspend lending after banking giant Santander, decided it no longer wanted to fund the equity release mortgages.
Georgina stated “We are in discussion with a number of potential lenders and we do hope to start lending again in the near future. We believe in equity release as a product,”
Stonehaven’s existing lifetime mortgage customers will not be affected with continued good servicing & they have pledged to meet all the existing terms and conditions
Stonehaven have placed deadlines on existing business applications based on KFIs generated before 10th March 2010.
New applications, supported by relevant Key Facts Illustration must be received by close of business on Wednesday 7th April 2010. Applications must include a cheque to cover the valuation fee.
Thereafter, offers made by Stonehaven are normally valid for a period 3 months; however they are extending this deadline to 6 months from the valuation date
We look forward to their return.
Mark Gregory CeMap CeRER
0800 783 9652
mark@equityreleasesupermarket.co.uk
Tags: Aviva, equity release, equity release schemes, Just Retirement, lifetime mortgages, LV=, Stonehaven
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Monday, January 4th, 2010
With immediate effect Just Retirement has reduced their equity release interest rates from 6.79% to 6.59%.
This news arrives in conjunction with the departure of Prudential from the equity release market at the end of 2009 & is a bold move readdressing the negative moves on interest rates at the back end of last year
The interest rate reduction applies across all age ranges & as a consequence Just Retirement now becomes one of the lowest drawdown equity release schemes in the market.
In addition to this rate reduction, Equity Release Supermarket can also obtain a generous £450 cashback for the client on completion of the plan.
This certainly assists in reducing the overall set up costs of the plan.
For further information or quotation on the Just Retirement Roll-Up Lifetime Mortgage, please contact Mark Gregory on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: Add new tag, cashback, equity release, equity release schemes, Just Retirement, lifetime mortgages, Roll up lifetime mortgage, set up costs
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Tuesday, November 24th, 2009
Prudential has announced to the industry that it will withdraw from writing new equity release business in the New Year.
The insurer will however continue to maintain the current service standards to its existing 14,000 customers.
As reported in earlier newsletters on this site, this follows a trent set in 2009 of other equity release providers pulling its equity release schemes - notably Coventry Building Society (Godiva), Saffron Building Society, Retirement Plus & Northern Rock.
However, the Prudential’s announcement is the first major casualty in the specialist equity release market & may come as a concern.
Launched in 2004, Prudential had innovative products & backed by its strong household brand name. Their market share had been 23% in 2008 & 12% of the equity release market in 2009, with total lending amounting to around £1bn.
They have stated that the mortgage book always was planned to be securitised, however with current market conditions this course of action was stemmed. Barry O’Dwyer who is Managing director of retail life and pensions stated that he does not feel this securitisation market to return potentially for another five years.
Other factors Prudential have sited are the up-front costs of equity release provision being too high against the payback period for the capital. Prudential now feel this cash is better deployed to other product areas of the business.
Remaining companies in the market will surely address their positions in light of this. The major providers now left being Aviva, Just Retirement, LV=, Hodge Lifetime, Stonehaven & the home reversion companies of Bridgewater & Home & Capital.
Therefore, anyone considering the Prudential equity release plan must act soon!
For a summary of their products and rates please click on the following link…Prudential Equity Release Plans
Equity Release Supermarket still have a special offer with the Prudential which includes a free valuation & £300 cashback on completion.
Click here to register your interest…Prudential Offers
If you have any queries or an existing customer please contact Mark Gregory on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, increasing cash reserve, lifetime mortgages, Prudential, Prudential cashback offer, Prudential Equity Release, Prudential Free valuation, Prudential Lifetime Mortgage, Prudential Offers
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Sunday, November 22nd, 2009
More commonly, people enquiring about equity release have an existing mortgage or loan still secured on their home.
However, for an equity release scheme to be accepted by the lender, the mortgage or secured loan balance must be fully repaid.
In order to ascertain whether the mortgage can be repaid by an equity release we need to know the valuation of the property & the age of the youngest property owner (minimum age is 55).
Once established, as long as the figure calculated is at least the size of the current mortgage, then the equity release can be applied for.
Even in situations where the full mortgage balance cannot be effectively be reached by releasing equity, if the difference can be found by way of additional funds such as existing savings/investments, then the application can still proceed.
The major benefit of being in a position to pay off the mortgage is that no more monthly payments will be required in the future.
This will alleviate any financial pressures of maintaining the mortgage payments maybe at a time of redundancy, retirement through ill-health or severe debt issues.
Potentially, this course of action would avoid the issues of repossession & even incurring an adverse credit record.
Nevertheless, it must be bourne in mind the consequences of this course of action.
Yes there are no more monthly payments, however the interest that would normally have been repaid is instead added to the mortgage balance. This has the effect of an ever increasing debt that effectively doubles every 10-11 years, dependent on the interest rate obtained.
There may be concern that this equation would, & can, have the effect of eroding the value of ones estate, especially given the fall in property prices recently.
However, the optimists amongst us would assume that over the longer term property values will recover & escalate over time.
Effectively this would counter the roll-up effect of the increasing equity release balance.
Unfortunately, we would not know the full extent of this & hence the reason for the inclusion of the no negative equity guarantees built into these SHIP regulated schemes.
This ensures that any beneficiaries cannot be saddled with any personal debt, with the worse case scenario effectively being that the lender takes the value of the property; no more.
For these reasons from a lifetime mortgage lenders point of view, they do not permit any second charge as there maybe no security left for the subsequent lender in case of default.
Why a second charge would want to be placed given there maybe no future equity remaining anyway would be a questionable issue.
Therefore in summary, anyone looking at taking out equity release must be able to redeem any existing mortgage with the new lifetime mortgage being the only secured loan on the property.
Please contact mark@equityreleasesupermarket.co.uk
http://www.equityreleasesupermarket.co.uk
Tags: equity release, equity release & repay mortgage, equity release schemes, home reversion, home reversion schemes, lifetime mortgages, mortgage redemption, redeem mortgage
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Saturday, October 31st, 2009
For the 2nd year in succession Equity Release Supermarket have been nominated at the prestigious Equity Release Awards Ceremony on 13th November 2009 at Merchant Taylors Hall in London.
This follows their success in 2008 where they won the award of Best Financial Advisers - less than 10 employees.
Director - Mark Gregory commented, “Im extremely pleased with the recognition the company has achieved yet again, given the current market conditions & so proud of the effort his advisers have made over the past 12 months”
Equity Release Supermarket are independent specialists advisers the over 55’s lifetime market.
mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release awards, equity release schemes, home reversion, lifetime mortgages
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