Archive for the ‘News’ Category
Saturday, November 6th, 2010
For the 3rd year in succession Equity Release Supermarket have been shortlisted at the prestigious Equity Release Awards Ceremony on 12th November 2010 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 & subsequent nomination in 2009.
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Director – Mark Gregory commented, “I’ve got to be pleased with the continuous recognition that Equity Release Supermarket is achieving. This has been achieved despite difficult economic conditions & is testament to the excellent team of advisers & their efforts during 2010”
Equity Release Supermarket are independent equity release specialists for the over 55’s lifetime mortgage market.
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To contact Mark & the Equity Release Supermarket team ring freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk.
Website – www.equityreleasesupermarket.co.uk
Tags: equity release, equity release awards, equity release schemes
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Wednesday, November 3rd, 2010
Signs are certainly showing of a recovery in the equity release market as news that existing SHIP member – New Life Mortgages are returning with two new competitive products.
They arrive on the back of the recently launched impaired life equity release lender; more2life at the beginning of October.
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Although New Life Mortgages hadn’t officially withdrawn from the market in 2009, it remained in the market whilst new funding sources were explored..
That time is now & details of the revamped equity release schemes can also be found on the Equity Release Supermarket website by clicking here.
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New Life Mortgages have decided to make a statement, by not only relaunching their product range, but also arriving with the lowest interest rate in the market at just 6.35% monthly.
The Lifetime Fix and Lifetime Gold products both position themselves into the ‘roll-up’ lifetime mortgage range & are designed to be the most competitive equity release products in the market for the over-55’s.
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The New Life Gold product is designed to offer the maximum release possible for a client in good health. Plans start at age 55, with a release of 20%, thus offering the maximum release currently available in the equity release market.
The age related percentage’s that can be released are as follows: -
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Age 55 – 20%
Age 60 – 25%
Age 65 – 30%
Age 70 – 36%
Age 75 – 41%
Age 80 – 46%
Age 90 – 51%
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The product is uniquely available only on a single life basis & has a very competitive interest rate of 6.75% monthly. This compares favorably with its peers at the maximum release end of the market who would be Aviva & new entrant more2life.
As an extra incentive, New Life Mortgages are offering £300 cashback on NLM Gold cases that complete prior to December 29.
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The Lifetime Fix is the second product on offer from New Life Mortgages with the lowest rate currently available in the equity release market at just 6.35% monthly.
Available on a single & joint life basis the plan releases a lower amount than the Gold product, starting with a release of just 17% of the property value at age 55.
As an added incentive New Life are offering £600 cashback on cases completed before 29th December, so if you are considering equity release with a low interest rate hurry!
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Both schemes have a minimum acceptable property value of £60,000, which again is the lowest in the equity release market & may bring previously ineligible applicants a new lease of life?
If early repayment charges are an issue with some lenders relying on gilt rates, New Life Mortgages have a more conventional attitude with the simplistic rate of a 5% penalty in the first 5 years. Thereafter no penalty exists.
This could obviously favour people who may have shorter term retirement plans with their properties, although equity release UK schemes are designed to run for the rest of your life.
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Should you require a product fact sheet or quotation on any of these New Life Mortgage products, please call the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
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Tags: Add new tag, equity release, Equity Release Adviser, Lifetime Fixed, lifetime mortgage schemes, New Life Gold, New Life Mortgages
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Thursday, October 14th, 2010
Signs that the equity release market is beginning to spark into life again, can be evidenced by the re-emergence of a former lender in the market.
more2life have joined forces with annuity specialist Partnership assurance to re-launch their impaired life roll-up lifetime mortgage plan.
Incorporating an impaired life facility & protected equity guarantee, the more2life equity release plan can be seen to be opening a niche market for itself. The impaired life facility means that depending on health & lifestyle, a higher than normal tax free lump sum can be achieved, should serious health issues be present.
The more2life equity release plan has been designed with three scenario’s in mind: -
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- Enhanced plus – industry leading maximum release, impaired life product
- Enhanced protected – impaired life plan with ‘protected equity guarantee’
- Protected plan – older applicants looking for a ‘protected equity guarantee’
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Pitching the enhanced plus plan at the maximum release end of the market means that should the applicant qualify on medical grounds, they would have the highest equity release lump sum currently available. This would even surpass the current Aviva Lump Sum Max product, although this would be at the expense of a higher interest rate with more2life.
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The following percentages are the maximum releases available on the Enhanced Plus: -
Age 55 23%
Age 60 28%
Age 65 33%
Age 70 38%
Age 80 48%
Age 90+ 54%
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For example, an applicant aged 65 with a property valuation of £250,000 & meeting the underwriting criteria, can release a maximum of £82,500 on the enhanced plus plan.
The interest rate for this product will be 7.49% monthly.
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The second product – ‘enhanced protected plan‘ is also based on health & lifestyle grounds & again can provide an enhanced lump sum. However, to qualify for this equity release scheme the health situation will not be a serious as the enhanced plus. The interest rate for this plan is lower at 6.99% monthly.
Another feature of this plan is the ‘protected equity guarantee’ which is included & guarantees a percentage of the property for the children/beneficiaries on the eventual sale of the property.
The guarantee works as follows: -
Should the overall facility available be £80,000, yet only £40,000 is taken, then 50% of the final sale value will be protected on sale.
This can be an essential tool for applicants who wish to ensure that a guaranteed inheritance is passed onto their children.
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The final option is the ‘protected plan’ which has no impaired life facility , but does include the protected equity guarantee. The interest rate is the same as the enhanced protected at 6.99% monthly.
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In summary, depending on whether the maximum lump sum is being sourced, or one is looking to take equity release but still guaranteeing an inheritance for their children, then one of the three more2life equity release schemes can benefit.
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If any of these more2life plans would be of interest to you, please ring the Equity Release Supermarket team on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
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To request a quote on the more2life enhanced plans please click here.
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Tags: equity release, equity release schemes, impaired life, inheritance protection, lifetime mortgages, maximum lump sum, more2life, protected equity guarantee, Roll up lifetime mortgage
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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 originally sourced its funding from Santander, should now benefit from the withdrawal from the market of the Halifax Retirement Home Plan.
Stonehaven now use various finance houses in order to release equity in this sector. Their Interest Select plan can provide an interest only mortgage that will run for the rest of your life.
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To provide peace of mind to their customers, the interest rates are fixed for life. Therefore you can be safe in the knowledge that your monthly interest only mortgage payment will never change, regardless of external interest rates.
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The Stonehaven Interest Select plan has been given the rare title these days of a self certification (self-cert) mortgage as NO income verification is required. Stonehaven class the payment of interest as a ‘contribution’ as such do not require proof of any income. The Stonehaven Interest Select plan also has the added facility of selecting the amount of interest you wish to pay. Stonehaven will allow a contribution of anywhere between £25pm upto the full interest payment so one can fit the monthly payment in with their budget.
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Should not all the interest be repaid, then there will be an element of roll-up onto the original capital raised. The balance will therefore increase over the years, but not as great as otherwise would be if no payment was made at all. This could be great news for the children or beneficiaries who wish to maximise the amount they receive at the end of the day.
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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.
Stonehaven’s existing lifetime mortgage customers have received continued good servicing & they have pledged to meet all the existing terms and conditions.
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New applications, supported by relevant Key Facts Illustration can only be processed by qualified financial advisers such as Equity Release Supermarket & cannot be done direct. Applications must include a cheque to cover the valuation fee.
Offers made by Stonehaven are normally valid for a period 3 months & if you are considering an alternative to the Halifax Retirement Home Plan then the Stonehaven Interest Select plan can meet your requirements.
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If you have any enquiries or questions you wish to ask then please contact the Equity Release Supermarket team on 0800 678 5159.
Mark Gregory CeMap CeRER
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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