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Posts Tagged ‘Drawdown Scheme’

LV= Follow Suit In Latest Round of Equity Release Interest Rate Cuts

Monday, January 30th, 2012

Following on from the post on Friday regarding Aviva reducing its equity release interest rate on their Lifestyle Flexi plan (drawdown scheme), another lender has now followed suit.

LV= (Liverpool Victoria) today advised that it is also to drop its rates with effect from 1st February 2012 on both its Lifetime Mortgage  – lump sum plan & the Flexible Lifetime Mortgage  – drawdown scheme.

 

The corresponding rates are as follows: –

Lifetime Mortgage – lump sum – 6.39% (6.60% APR)
Flexible Lifetime Mortgage – 6.49% (6.8% APR)

 

Although interest rates are higher than the two largest providers – Aviva & Just Retirement, LV= do have some quality features that make it stand out from the crowd.

Firstly, their early repayment charges are fixed. This means that there is no link to gilt rates as the basis for the early repayment charge calculation, like Aviva & Just Retirement do.

LV=’s early repayment charges are known from the outset & are 5% in the first 5 years & 3% in the next 5 years. For some this can be reassuring news should their circumstances change in the future & early repayment is necessary.

LV= also allow partial repayments, subject to a minimum of £5,000 so if you are looking to work around potential early repayment this can be planned accordingly.

 

Equity Release Supermarket currently receive a free valuation with LV= with no current deadline. So now is as good a time as any to be considering an equity release application with the recent interest rate reductions across the board.

If you wish to obtain a quotation or advice on any of the LV= equity release schemes, please call our freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

Equity Release Supermarket Announces New Exclusive Cashback & Low Interest Rate Deal with Just Retirement

Saturday, November 12th, 2011

Following hot on the heels of Equity Release Supermarket’s recently advertised Aviva cashback/valuation/interest rate deal, Director Mark Gregory  is pleased to report a further exclusive equity release offer from Just Retirement.

 

‘We are pleased to advise that we now can provide a much improved offering to our customers from Just Retirement. On the back of a successful year in the equity release market, our achievements have now been recognised & rewarded by Just Retirement.’

 

Similar in nature to the Aviva deal, Just Retirement are to offer Equity Release Supermarket customers an amazing £700 cashback, FREE unlimited valuation & specially reduced interest rate of 6.35%.

The £700 cashback coupled with free unlimited valuation will enable our customers to submit an equity release application with NO upfront fees.

 

Major beneficiaries of the free valuation will be the applicants with higher property values, who will benefit from a completely FREE valuation. An example of this can be seen on a property valuation of £500,000 which will save such Equity Release Supermarket  customers a sizeable further £500!’
The combination of free valuation & cashback (which offsets the application fee) results in the only fixed set up cost to be the equity release legal fees . These can be offered to Equity Release Supermarket customers for as low as £349+VAT & disbursements.

 

Just Retirement are one of the leading equity release companies whose drawdown scheme has recently undergone a major review, the results of which are now becoming evident.

The Just Retirement drawdown facility, which used to be capped at 100% of the initial release, has now been revised for the first time since its inception over 5 years ago.

The review has resulted in Just Retirement’s drawdown facility being increased from 100% to 200% of the initial withdrawal. This now puts it in line with fellow equity release lenders such as LV= which uses the same formula for calculation of the size of the additional reserve facility.

 

To request a quote on the special offer from Just Retirement please click here.

To find your local Equity Release Supermarket adviser please click here or call freephone 0800 678 5159.

 

Not Happy With Your Pension? Can Equity Release Schemes Help?

Monday, December 20th, 2010

Should you have already purchased your annuity from your pension scheme, then unless it is indexed linked by inflation you may now be feeling that has lost some of its purchasing power over the years. With inflationary fears currently still persisting, even with the recent downturn in the UK economy, then people are looking at extra ways to enhance their retirement income & lifestyle.

Obviously, once a pension has been purchased then it is fixed for life, so alternative sources of boosting one’s retirement income need to be sourced.

 

So how can equity release assist?

Equity release allows you to enjoy the monetary benefits of your assets without having to sell them. This is one of the ways to use the equity locked in your property. Equity release schemes are available only for retired individuals over the age of 55.

There are two types of equity release schemes: Lifetime mortgages and home reversion schemes. Consider the benefits of these two and choose one that suits your requirements. It is prudent to opt for independent financial advice when dealing with equity release schemes.

 

Lifetime mortgage schemes: These schemes are designed for property owners. They help in gaining money by mortgaging the property. A major benefit of opting for this scheme is that you still remain the sole owner of your property. Individuals over 55 years of age are eligible for lifetime mortgage schemes.

One type of lifetime mortgage scheme called drawdown equity release could be a solution here. The lender will calculate an overall maximum that can be released & from this the applicant can withdraw this reserve facility in small amounts at times to suit one’s requirements. This could be monthly, half yearly or even annually, but the choice is yours. Therefore, by opting for a drawdown scheme could boost your retirement finances with flexibility.

 

Reversion schemes: Contrary to lifetime mortgage schemes, home reversion schemes require you to sell a part or all of your property to enjoy monetary benefits. A lump sum from one of these schemes can be used to purchase an annuity which could therefore supplement any existing pension scheme.

Dependent on the lump sum raised, age & health & options built into the annuity would determine the regular income to be paid by the annuity provider. Always shop around or seek the advice of an independent financial adviser to ensure the maximum possible income is achieved.

 

Eligibility

You should be the sole owner of your property prior to mortgaging it. The aforementioned schemes have different age requirements. While lifetime mortgage schemes require an individual to be 55 years of age, home reversion schemes need the individual to be 65 years of age to qualify. Your property will be surveyed and you can qualify for these schemes only if it is worth £60,000 or more.

 

Equity Release Supermarket have independent financial advisers that can provide advice on both equity release & how to maximise your retirement income with annuities & pensions.

Contact us on freephone 0800 678 5159 if you wish to discuss whether any of these products can help your retirement financially.

e: mark@equityreleasesupermarket.co.uk

w: http://www.equityreleasesupermarket.co.uk

 

Equity Release – Some Of Your Doubts Clarified

Wednesday, October 27th, 2010

There are still many doubts in people’s mind regarding equity release. Many people stay away from such schemes because they believe that they are not eligible to opt for one or fear of the unknown. There are some who think that they have to sell their property or that they will lose the ownership. To clear some of these doubts, read on.

 

Who is eligible?

Equity release is a scheme to benefit older people. The minimum age of a person to qualify for a lifetime mortgage is 55. To qualify for a home reversion scheme, a person should be 65. A person cannot qualify for equity release if they have a property valued below £70,000.

 

What about property ownership?

After opting for equity release schemes, you will still be the owner of your property. Equity release gives you the value for your property without you losing ownership. With lifetime mortgage schemes, you have complete ownership. On the contrary, with a home reversion equity release scheme you are required to sell all or a part of your property.

 

 

When is this loan repaid?

The loan is repaid after selling your property. This property is mortgaged with the lender and hence is sold after your death or having to move into long term care. The money has to be repaid between six to 12 months, dependent upon the equity release lender. The interest is continued to be added to the loan until the property is eventually sold.

Initially, your property will be surveyed and then valued accordingly. This figure will determine how much can be borrowed initially, or if a drawdown scheme how much of an overall cash facility will be provided by the equity release company.

This scheme is meant for senior citizens to enjoy life to the full without depending on anyone.

 

To speak to one of thye Equity Release Supermarket specialists call 0800 678 5159

 

 
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