Posts Tagged ‘Halifax’
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.
X
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.
X
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.
X
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.
X
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
Posted in Halifax Retirement Home Plan | No Comments »
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.
X
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.
X
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.
X
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.
X
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.
X
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)
X
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.
X
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 »
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.
X
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
Posted in Halifax Retirement Home Plan | No Comments »
Tuesday, November 9th, 2010
The current economic situation has forced everyone to look for different ways to raise money.
Equity release schemes are one option available to enjoy the fruits of retirement in a way many would never have envisaged.
Some people are still unaware of equity release schemes and their numerous benefits; here we aim to address those issues.
X
Maintain standard of living
Immediately upon retirement, there is an evident drop in income. Unfortunately expenses do not.
You may think that saved money during your working life will be adequate for you to live comfortably. Rising inflation & lack of confidence in pension plans might make this difficult.
There are other options to consider & one of these maybe to downsizing to a smaller home. Other options available prior to considering equity release would be using any savings, asking relatives for financial assistance, claim any benefits due or if you have a good disposable income there is still the option of an interest only mortgage. The Halifax Retirement Home Plan can assist here.
X
If you look into equity release schemes, you will notice that you do not have to sell your property. Therefore, you can remain at the property for the rest of your life.
Applying for equity release, enables you to obtain some of the cash value of your property and with a roll-up lifetime mortgage you still remain the owner. This way, you can maintain your standard of living and can avoid the hassle of moving into another house.
X
Fulfil your needs
Additional cash can help retired individuals to fulfil basic needs as well as allowing them to pursue leisure activities. You may want to clear some debts, go on a long holiday, buy a new house or simply develop new hobbies. Equity release schemes can help you with these things.
X
The age factor
Age is an important factor when buying an equity release scheme. Your age is directly related to the amount of cash you can get. The older you are, the more you can get. Lifetime mortgage schemes start at age 55 with a maximum release of 20% & run beyond age 90 releasing over 50%.
Home reversion schemes start at age 65 & again go past age 90 with the maximum release being the sale of 100% of your property to the home reversion provider.
X
No limitations on spending
A good thing about equity release schemes is that you can spend the money the way you want to and there are no restrictions. We would only advocate initially taking an amount which you are likely to require in the first 12 months. The reason for this is that drawdown equity release schemes allow you to take the equity release cash in stages rather than all at once. This ensures that you pay less interest in the long run as you only pay interest on the actual amount you have withdrawn.
X
Tax-free cash
The cash you receive from the scheme is free of income tax. However, if any funds are placed on deposit then you could pay tax on any interest gained.
X
To find out whether equity release is suitable for you why not have a free initial consultation with one of our qualified equity release advisers. Call now on freephone 0800 678 5159.
Alternatively, email admin@equityreleasesupermarket.co.uk.
X
Website – http:///www.equityreleasesupermarket.co.uk
Tags: equity release, Equity Release Adviser, equity release schemes, Halifax, Halifax Retirement Home Plan, home reversion, home reversion schemes, lifetime mortgages
Posted in Equity Release | No Comments »
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.
X
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.
X
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.
X
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.
X
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.
X
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!
X
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.
X
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.
X
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.
X
For further information or to request a quotation, please ring Mark on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk.
X
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
Posted in Halifax Retirement Home Plan | No Comments »
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.
X
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.
X
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.
X
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.
X
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.
X
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.
X
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
X
For additional information on the Halifax Retirement Home Plan & rates available visit our compare deals table.
X
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
Posted in Halifax Retirement Home Plan | No Comments »
Wednesday, June 30th, 2010
It is becoming more common for people reaching state retirement age to still have a mortgage running into retirement.
Even more so, there is a growing demand for extra mortgage lending once they are in retirement.
Here we discuss what retirement mortgage options are available, acceptable income sources & where to look for independent advice on these matters.
X
There can be many reasons for having a mortgage beyond state retirement age; namely poor performing low cost endowments, previous unemployment or even long term health issues.
A mortgage that runs into retirement can have major issues with both affordability & term to its repayment date. Most lenders will require repayment on a mortgage by age 75.
We will now look at ensuring all available income is being claimed. Once researched, we can then discuss which of these are eligible for inclusion in mortgage affordability calculations.
X
So what options are available on reaching retirement itself?
Well this will depend on affordability & how the financial management of the mortgage itself can continue. The main issue with regards to affordability of an interest only mortgage at retirement is how much retirement provision has been made & maximising any other available sources of income.
X
What Type of Retirement Incomes Should I be Receiving?
Having reached state retirement age the state pension will become available. However, the level of this is dependent upon national insurance contributions paid over one’s working life. The current basic state pension is £97.65pw & on its own would not be sufficient to support an interest only mortgage payment alone. State Earnings Related Pension Scheme (SERPS) & any entitlement to the graduated state pension can possibly boost the state pension somewhat, but not substantially.
State pensions are a source of income that can be utilised towards a mortgage in retirement.
X
Company pension scheme members can benefit greatly with additional pension income that could be index-linked yearly & be calculated dependent upon the number of year’s service.
There is also evidence that personal pension plans can also boosting retirement income. Increasing importance is being placed in this area on seeking independent financial advice. Due to falling annuity rates it is more important to shop around & optimise your pension fund. Annuity providers can now enhance your pension income if poor health issues exist.
Both company & personal pensions are a source of income that can be utilised towards a mortgage in retirement.
X
With the recent economic downturn we have unfortunately seen the reduction in bank & building society interest rates. This has affected investors, once reliant on good interest payments, which would supplement their lifestyle. Again ensure you shop around to obtain a higher interest with your savings is more important than ever. Tax payers should make use of their annual cash ISA allowance of £5100 & non-taxpayers should ensure that Inland Revenue form ‘R85′ is completed in order they can obtain their interest paid gross.
Savings interest can be a source of income that can be utilised towards a mortgage in retirement.
X
It is also important to check whether any means tested benefits are available from the Department of Work & Pensions. Dependent upon age there may be eligibility for certain benefits such as pension credit & savings pension credit.
Income levels below £132.60pw for a single person & £202.40pw (2010-2011) jointly could allow a claim for pension credit to be made. Also, check any entitlement to council tax benefit availability, which even though it cannot help mortgage payments directly, it can lower the monthly outgoings.
If there are disability issues then depending on the condition, disability living allowance (DLA), attendance or even carers allowance may be available.
Lenders have different rules on means tested benefits – to see which qualify for a mortgage in retirement contact Equity Release Supermarket on 0800 783 9652
X
Maintaining employment through or into retirement does obviously alleviate some of the financial issues. However, experience has shown that there are difficulties in gaining employment.
Nevertheless, it is increasingly apparent that people are now looking to continue working into retirement & provide extra cash to support retirement lifestyle. If part time work can be found then it can not only assist the budget, but also the soul. People in retirement are feeling & looking younger & with more activity in retirement their average life expectancy is rising as social constraints are removed.
Employment income will only help people with existing mortgages going into retirement, but not anyone trying to obtain a mortgage in retirement. Lenders will only accept employment income if a new mortgage is to be repaid before state retirement age.
X
Secondary investment properties can provide a form of rental income which can be used towards paying a mortgage in retirement. However, if any existing buy to let mortgage is in operation this will need to be declared & considered as part of the application.
As long as a tenancy agreement is in existence then this will be considered by the lender.
X
Although not a specific means of retirement income, equity release schemes can also be considered a means of retirement support. The flexibility of drawdown equity release schemes now incorporates the use of drawdown facilities which are essential in supplementing a flexible lifestyle.
These drawdown equity release schemes provide an initial tax free capital lump sum, with an additional reserve facility that can be gradually withdrawn over future years.
Equity release lenders such as Just Retirement permit additional withdrawals in small amounts of £2,000 a time, which helps retirement planning & provides financial security for the future.
Another method of providing income from equity release is through a Home Income Plan. These equity release plans involve a combination of two products; a Home Reversion scheme & a lifetime annuity. The home reversion company purchases a percentage of the property in return for a tax free cash lump sum. The lump sum can then used to purchase the annuity which can then generate the lifetime pension income required.
Both these equity release schemes will not assist in obtaining a mortgage in retirement. However, in their own right they can provide alternative capital or income in retirement with no monthly payments.
X
As you can see there are various income sources which mortgage lenders can consider.
With recent restriction on lending criteria, it is more important than ever to obtain independent financial advice on this specialist area of retirement mortgage finance.
X
For further information & advice on mortgages in retirement, please click here for details of interest only mortgages currently available.
Alternatively please contact Mark Gregory on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
X
Tags: Add new tag, equity release, equity release schemes, Halifax, Halifax Interest Only Mortgage, Halifax Mortgage, Halifax Retirement Home Plan, Home Retirement Plan, interest only mortgage, Just Retirement, lifetime mortgages, Mortgage in retirement
Posted in Halifax Retirement Home Plan | No Comments »
Friday, December 11th, 2009
At a time when the equity release market is downsizing with the withdrawal of many lenders, alternative funding sources need to be recognised to help widen the options available.
It is in the generic mortgage market that some unique & flexible mortgage products can be sourced that offer an alternative to the traditional roll-up lifetime mortgage; it is one of these that I write about.
Upon gathering client details & ascertaining a generous disposable income, sometimes it can be evidenced that monthly payments can be afforded into retirement.
However, there is a common misconception that someone in retirement cannot have a mortgage.
This is incorrect.
Providing income multiples can justify the borrowing requirements, then research can be sought that would provide recommendations of suitable mortgage products.
However, providers that can lend into retirement have varying criteria with regards to age & the term permitted & here advice & a knowledge of the market comes into the domain of an experienced independent financial adviser.
The options available would be dependent on budget, but also on attitudes as to how much inheritance is to be left at the end of the day.
Should it be imperitive that the maximum inheritance remain, then a capital & repayment mortgage should be advised.
Conversely, if this is not a major issue then an interest only mortgage can be recommended which will maintain the balance at the same level throughout the term of the mortgage.
Some of the major lenders such as Abbey & Alliance & Leicester do have a maximum age of 75, by which time the mortgage must be repaid. A few will lend to age 85 such as Leeds Building Society which does give more time for the mortgage to run, however, this may only be suitable for capital & repayment mortgages, not interest only mortgages.
Therefore, should you be looking for equity release in retirement, have surplus monthly disposable income, wish to ensure an inheritance for your beneficiaries & want the mortgage on an open-ended basis then look no further than the Halifax.
It may come as a surprise that such a product may be available with a mainstream lender, however it has become more evident how this product can fulfill in-retirement needs.
The Halifax Retirement Home Plan can release cash over a maximum 40 year term, which for someone already near to, or actually in retirement, should be sufficient!
They will only permit this product upto 75% of the property value, however this is not usually not an issue due to the amount of equity in retirees properties. Finally, dependent on whether a mortgage currently exists, we can also obtain for you a free valuation & free legal fees.
They will also allow the product to use the mainstream Halifax interest rates such as their 2 year base rate tracker at 2.79%, which for a £50,000 interest only mortgage would equate to a payment of only £116 per month.
Obviously, consideration must be given to future potential changes that may affect the mortgage, such as the death a mortgagor which would reduce the household income & in turn affordability of the mortgage. However, this can be catered for with a life insurance policy which would repay the mortgage should either party die.
Alternatively, it should be borne in mind that if the level of borrowing is kept to within current equity release lending limits, then if one party did die, the surviving party could repay the mortgage with an equity release plan. This would resolve any affordability issues, as no monthly payments would be required thereafter.
Having completed several of these products recently, I can vouch for the speed of transacting this deal – 4 weeks, which compared to an equity release application is quicker too.
Therefore, rather than just assuming equity release is the only solution, ensure you receive advice from an independent financial adviser - which Equity Release Supermarket can provide.
For further information & eligibility for the Halifax Retirement Plan please contact Mark Gregory on 0800 678 5159 or alternatively email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, Halifax, Home Retirement Plan, interest only equity release, interest only mortgage
Posted in Halifax Retirement Home Plan | No Comments »
|
