Posts Tagged ‘equity release schemes’
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
Tags: Aviva, drawdown equity release, early repayment charges, equity release, Equity Release Adviser, Equity release interest rates, equity release schemes, Equity Release Supermarket, free valuation, lifetime mortgages, LV=
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Monday, January 30th, 2012
If you have been seriously considering taking out an equity release plan, the most important question to come to mind will be ‘what is the maximum equity release available?’
Obviously, you may not want to secure the everything you can get, however, a useful equity release calculator can advise upto the maximum available. For instance with a drawdown equity release plan, it would be helpful if you knew the maximum, as any funds not taken in such a scheme would then be held in a reserve facility for future use.
You will also need to bear in mind that there are certain factors that will be taken into account in order to arrive at the figure that would be released to you in such a plan.
First and foremost, your age will be a very important factor. The younger you are, the less you can expect to have released in an equity release scheme. You would tend to find that the companies that deal in equity release plans add an extra percentage point of LTV (loan-to-value) for each year the applicant gets older.
This is because the relevant company has to estimate how long it is likely to be until they will be able to secure the final equity – i.e. your property. If you take out an equity release mortgage when you are in your late-fifties or early-sixties, you can expect to receive a far lower payout than if you were to have taken out the plan in your eighties, for example. This is purely down to life expectancies which are increasing all the time as people are healthier & more active in their retirement years.
You should also bear in mind, at this stage that the companies dealing in equity release schemes have a minimum age threshold in place and this is generally set at 55 years of age. These would be companies such as Aviva, New Life Mortgages, and Stonehaven. However, some equity release companies such as Just Retirement & LV= impose a higher minimum age of 60 before you can apply.
The next factor that will be taken into account is the actual market value of your property. Again, the higher this is, the more you can expect to receive in your payout. There are minimum value thresholds in place here as well which is £60,000. However, most companies impose higher minimum values & £75,000 or £100,000 isn’t uncommon.
If you are looking to take out an equity release plan in a joint application, the youngest applicant’s age will be the deciding factor as to the amount of money that will be released in the payout. This is because the company must wait for both applicants to either pass away or move into permanent residential care and the youngest applicant will be the most likely to vacate the property last in either capacity. Also, as stated earlier, the youngest person in the couple must also be over the age of 55.
There are convenient equity release calculators on many websites that will give you a very good idea of the amount of money to be expected as a payout when you take out such a plan. All you need do is simply complete an online enquiry form and these will return the maximum value that may be available to you in an equity release scheme. If you are happy with this figure, you may then go ahead and start the ball rolling with the relevant company; there is also a facility to discuss equity release mortgages in more detail with a qualified equity release adviser, if you have further questions that require attention.
Tags: Aviva, drawdown equity release, equity release, Equity release calculator, equity release schemes, lifetime mortgages, maximum equity release, minimum age
Posted in Calculator, Equity Release | No Comments »
Friday, January 27th, 2012
With the latest round of equity release rate reductions, it seems both Aviva & Just Retirement are vying for top spot.
Currently, Just Retirement lead the way with their round of reductions a few weeks ago at a market leading 6.2% annual rate.
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However, Equity Release Supermarket have been notified that with effect from next week the Aviva flexi drawdown plan is set to become the market leader again by usurping Just Retirement with a reduction of 0.12% to a new market leading rate of just 6.1% annual rate.
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Mark Gregory – Director & founder of Equity Release Supermarket comments – “This is excellent news & the price war has been long awaited. Equity release interest rates have been in the doldrums recently compared to mainstream interest rates. We are getting back to rates from a few years ago & that sub 6% barrier is now not too far away. This new Aviva rate is exclusive with further benefits of a free valuation & an excellent £500 cashback on completion for the client. With gilts rates so low at present, now is as good time as any to be considering taking out an Aviva Equity Release plan.”
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Equity Release Supermarket are one of the leading independent equity release advisory firms in the UK currently & can be found on their informative website http://www.equityreleasesupermarket.co.uk.
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If you require information on the new Aviva Flexi deal please call 0800 678 5159 where one of the equity release team would be willing to assist & provide further details.
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Tags: Aviva, drawdown equity release, equity release, Equity Release Adviser, Equity release interest rates, equity release schemes, Equity Release Supermarket, Just Retirement, Roll up lifetime mortgage
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Sunday, January 15th, 2012
The current financial climate is quite simply awful for many people. Particularly, the retired & elderly are really struggling to make ends meet. Many retired people who left their work before the crisis hit have had to watch in horror as a lot of the value they had expected to retire on has been wiped away by stockmarkets & low interest rates with the banks & building societies. Sometimes, what is left in the pension isn’t enough, and their reaction is that they should sell their house in order to ensure a comfortable retirement.
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However, with equity release plans, this might not necessarily be required. Instead of selling the family home, why not release equity to cover the short term finances. We maybe only talking a small sum to tie you over until prospects improve. Therefore, for the sake of selling in a depressed property market, bide your time & think carefully about your options available. Equity release schemes can play an important role here.
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Equity release schemes are form of mortgage that enables people over age 55 to release locked up equity in their main residence. The typical and most commonly thought of equity release schemes are actually called lifetime mortgages. Lifetime mortgages are available to those over 55, and have specific characteristics which reflect this unique stage in life.
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Equity release schemes are like normal mortgages in that they are associated money & a property. However, where most mortgages are used to purchase the property over an extended period of time, equity release mortgages are new mortgages placed on properties which already have or virtually paid off the mortgage. The result is that while the property now has some debt associated with it, the value that is unlocked can be used for large scale projects or purchases, supplement pensions or more commonly home improvements.
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The other difference between an equity release lifetime mortgage and a normal mortgage is that with an equity release mortgage the assumption is that the balance will be paid off when the person who holds the plan sells the asset or as a part of the inheritance estate. This is why the over 55 age restriction on equity release schemes is so important. These financial products are designed to run for the rest of one’s life, so there is no call upon the repayment of the capital until death or moving into long term care.
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Many retired people watched the drop in markets sweep billions from the values of the pension funds, and therefore pushing significant financial pressure inwardly. It is easy to see how the equity release mortgage would be an excellent option for retired people who are struggling either for income or a capital lump sum. Where they were potentially considering having to sell the family home or go back to work, many retired people can supplement their pensions with the value withdrawn via an equity release scheme.
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As lifetime mortgage & home reversion plans are now members of SHIP, you always have the option of repaying the scheme during your lifetime. However, be wary of potential early repayment charges which some gilt related schemes can significantly impose. One way providers can recover their costs is through these means.
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Often people think that equity release is tantamount to putting debts on to the next generation. What is important to keep in mind that with lifetime mortgages the ownership of the property stays in the hands of the plan owner, just like a regular mortgage. In fact, usually the biggest difference between a normal mortgage and an equity release mortgage is that the terms of the equity release plan are more favourable as they consider the age of the owner of the plan, and factor that into the calculations.
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This means that those who inherit the property may also inherit the debt, but they now have the option to decide if they want to keep the property with a normal mortgage, or sell the asset and recover the rest of the equity. These are options which can be passed onward in an estate, making it easier for the family to make decisions which are appropriate for them.
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Selling one’s house is an emotive issue & needs to be discussed with those closest to you. Next step would be to discuss whether equity release schemes are a viable option & this is where Equity Release Supermarket can use their considerable experience & knowledge to help.
For an impartial & free initial consultation call Mark on 0800 678 5159 who can offer words of advice. Alternatively,in confidence email mark@equityreleasesupermarket with any questions you may have.
Tags: equity release, equity release mortgage, equity release schemes, Equity Release Supermarket, Financial adviser, FSA, home reversion, lifetime mortgage, lifetime mortgage schemes, lifetime mortgages, SHIP
Posted in Advice, Equity Release, News | No Comments »
Thursday, December 8th, 2011
The current global financial crisis has affected everyone in many ways. For those who have retired or were planning to retire, the credit crunch and related crash in the markets have wiped £billions from pension funds. For many, savings and pensions that were once thought to provide a strong foundation for retirement have been compromised, and these people will need to supplement their pensions with other financial products.
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A great option for these people is to look into equity release schemes. A great place to start researching how best to conduct the release of equity from their property is to start with equity release calculators; also known as lifetime mortgage calculators. These online tools are very helpful for providing basic information to start a discussion over the potential options available for those looking for equity release schemes and products.
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The equity release calculator, or lifetime mortgage calculator, is the first stop for many researching equity release schemes. The great thing about these easy-to-use online tools is that they provide an idea of what is possible. This popular online equity release calculator does just that.
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The equity release calculator asks for the age of the youngest homeowner. This is important, as equity release schemes are only available to those over the age of 55, and age bears an important part of the value of equity release. The value of the property is also required, for obvious reason as equity release schemes are generally based on the principles of the interest only home mortgage.
If there is any other mortgage or loan that uses the property asset as collateral, the outstanding value of these should be included as well, as they affect the overall value of what is available in an equity release scheme. Therefore any existing security on the property such as a mortgage or secured MUST be paid off prior to completion. This is usually resolved by using monies from the equity release itself, as the process can be completed by a simultaneous transaction at the solicitors.
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The first option presented through this equity release calculator is for the most common and standard plan. This is based on a person in good health, starting from age 55. For those who have suffered from ill health may be entitled to an enhanced lifetime mortgage programme. The total potential maximum amounts for each health option is listed for each. The equity release calculator provides a clear understanding of what the boundaries of the financial package will look like. Then it is a matter of discussing what the options for finance are within that value. The calculators will provide a maximum release of equity figure. Bear in mind this should not always be an indication of how much should be taken. Best advice would be to plump for the optimum amount based on your requirements instead.
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Alternative options than roll-up equity release schemes could include an interest only home mortgage, or a more specialist Stonehaven interest only mortgage scheme. The equity release calculator is linked to an accredited financial institution, so it is possible to start discussing that figure right away with a financial expert. However, for those looking to shop around, the figures will be helpful in their research.
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The calculator noted above is a lifetime mortgage calculator, and is tailored toward those specific kinds of equity release schemes.
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Home Reversion Plans have different criteria which include more details about the gender of the applicant and his or her state of health. Both have an important impact on this kind of equity release product value.
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The current global financial crisis has been hard on pensions, and many who thought they had enough money stored in savings and pensions are now looking for alternative financial supplements for their retirement. Equity release is one such supplement, and equity release schemes can really help those looking for a release of equity from their property investments, without having to sell.
This allows the property assets to remain in the inheritance chain, but still provides a way of recovering some of the value in the asset for today’s needs – in the form of an interest only mortgage or other financial solution. A great way to start on the search for the right equity release product is through the use of equity release calculators which show the monetary options available.
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To discuss your retirement mortgage queries, please contact the Mark on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Equity release calculator, equity release calculators, equity release schemes, interest only mortgage, Stonehaven
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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.
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‘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!’
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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.
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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.
Tags: cashback deal, drawdown equity release, equity release, Equity Release Adviser, Equity release interest rates, equity release schemes, Equity Release Supermarket, exclusive interest rate, free valuation, Just Retirement special offer
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Friday, November 11th, 2011
Equity Release Supermarket is pleased to announce its new equity release deal from Aviva.
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Commenting on the exciting new deal from Aviva equity release which offers clients a FREE valuation* plus a £500 cashback & specially reduced interest rate of 6.32%, director Mark Gregory states…
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‘the offer from Aviva is testament to the work & progress Equity Release Supermarket is making in the equity release market. Buoyed by the growing consumer confidence in equity release schemes, I feel that we are now positioned to increase our market share. Excellent deals from the likes of major equity release companies such as Aviva will help my team of advisers promote such competitive equity release plans.
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Equity Release Supermarket are now recognised as one of the major independent equity release brokers in the UK. Their market leading website offers all the current equity release interest rates & exclusive offers currently available.
Experience the Equity Release Supermarket website or to speak to one of their experienced equity release advisers call freephone 0800 678 5159.
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*Free valuation applies to property valuations upto £250,000
Tags: Aviva, Aviva cashback deal, Aviva equity release, Aviva free valuation, equity release, Equity release interest rates, equity release schemes, Equity Release Supermarket
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Wednesday, October 19th, 2011
The ever increasing price rises are a concern for everyone. Inflation today has been quoted at 5.4% & therefore pressure is being exerted on mortgage & equity release interest rates. People who have retired and have a limited pension are in a worse situation than in the past. Their pension does not allow them to fulfil even their basic needs, let alone luxuries. In this hard and fast world, pensioners often feel secluded and uncared for.
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However, all is not doom & gloom for those with properties & equity tied up within them. Mortgages haven’t tended to be the focus for the retired. Their credit history tends to err on caution rather than frivolous in nature. Yet credit trends are changing with the acceptance of new credit lines & leniency towards the children’s inheritance. So more emphasis is being placed on the release of equity from lifetime mortgage schemes.
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If you have not heard about equity release, then we will help you to understand all about it. Equity release schemes allow you to generate extra money over and above your pension. If you are one whose money is in limited supply, equity release schemes could be the answer for you. If you own property, you can apply for any type of equity release scheme. Your property enables you to release tax free cash which can be taken in stage payments or as a one off lump sum. This additional cash helps you to live your life properly and with all the luxuries you have become used to. More common reasons for equity release UK plans are home improvements, new car, holidays, gifting to the children or to help with the purchase of a new property.
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There are many plans you can apply for, but drawdown equity release schemes are now the most popular. These roll-up equity release schemes offer an overall cash facility from which you can take money from as & when required. By opting for this formula you will only pay interest on cash actually taken & not the funds still held by the equity release company in their reserves.
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Increasing popular are the interest only lifetime mortgage plans provided by companies such as Stonehaven equity release. Helped by the previous popularity of the Halifax Retirement Home Plan, interest only lifetime mortgages have increased awareness of interest paying mortgages in retirement.
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Equity release has been in existence for a long time now, but still not everyone knows about it. The equity release trade body SHIP (Safe Home Income Plans) has led a sole crusade in raising awareness by pushing for consumer protection. Thanks to SHIP, today’s equity release schemes can be trusted & applied for without concern.
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If you need advice on whether equity release or interest only lifetime mortgages are for you then please contact Equity Release Supermarket on 0800 678 5159 or visit the EquityReleaseSupermarket website.
Tags: equity release, Equity release interest rates, equity release schemes, Equity Release Supermarket, Halifax Retirement Home Plan, release of equity
Posted in Equity Release, Interest Only Lifetime Mortgage | No Comments »
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