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Posts Tagged ‘Papilio UK Equity Release’

The Importance of Annual Equity Release Reviews

Thursday, October 23rd, 2014

 

Feefo 100% Trust equity release reviews

 

It’s always a thrill to call my clients when their equity release application finally completes. That’s the time when they’ll receive their equity release proceeds and have the necessary funds to meet their objectives, such as home improvements, new car, helping their family or simply repaying debts. Although the application process has now completed, it’s actually the start of what should be a long relationship between the client and myself.

 

How Equity Release Supermarket can assist…

 

Here at Equity Release Supermarket we pride ourselves on the quality of our whole service proposition. Therefore, following completion of any application we always invite our customers to provide feedback as a measure of how their equity release has been handled. An equity release application can take on average between 6-8 weeks and during that time there are many steps we manage on behalf of our clients to make sure it’s transpires as smooth and as quickly as possible.

 

Our feedback request starts at the first stage of the equity release process which is where we provide the independent equity release advice governed by the regulation of the Financial Conduct Authority and following the Equity Release Council’s code of conduct. Thereafter, we ask for feedback regarding our administration team who process the cases and manage liaison between the client & solicitor & the lender. This aspect is of paramount importance to us as this governs the speed & efficiency of the whole application.

 

Feefo Equity Release Reviews

Feefo 100% Trusted Merchant

Our genuine online Feefo reviews illustrate our dedication to servicing equity release customers and its testament to the fact Equity Release Supermarket received the prestigious Feefo 100% Trusted Merchant Award for 2013. In fact during 2014 we are still on track for 100% positive Feefo reviews from our clients. By visiting the www.equityreleasesupermarket.co.uk website & clicking on the Feefo logo you can read how our customers view our excellent service & shows how our advisers will go that extra yard in order to provide their clients with our excellent customer service proposition.

 

As an example, one such review I received recently was as follows: –

‘I was really impressed how quickly Mark Rumney sorted things out for me and even though he was going on holiday this did not stop him. He made sure that everything was in place for me before he went, even well into the evening. So thank you Mark and I would definitely recommend your services.’

 

Continually Innovating – Equity Release

 

Today’s equity release schemes are very flexible, and clients circumstances can change, therefore I like to call clients annually to touch base, remind them of their options and review their situation. During the annual review I like to: –

 

  • Remind clients of the ability to make voluntary interest payments
  • Check whether any new products may be more suitable
  • Check whether interest rates have reduced and are still competitive
  • Check that interest only lifetime mortgage schemes are still affordable

 

Let’s look at each of these in turn…

 

Voluntary Interest Payments:

Both Aviva & Hodge Lifetime have equity release schemes which allow you to make voluntary interest payments of up to 10% of the original loan amount, once schemes have been in place for 12 months. This can dramatically reduce the outstanding balance at the end of the term, so it’s important we remind our clients of this and explain the mechanics of how they make ad-hoc payments to their lender.

 

New products:

New providers and products are often launched which may prove more suitable, although you need specialist advice when considering switching schemes. I offer a free initial consultation to complete a switch plan analysis in order to determine whether it is best advice to switch equity release plans.

 

For example, Pure Retirement launched a drawdown lifetime mortgage plan in 2014, which tends to offer the highest reserve on the market, with the possibility of receiving £1,100 in cashback that can cover all the remaining set up costs. This may therefore appeal to customers of older equity release schemes, as they can possibly switch to a lower rate at the same time as have a new cash reserve facility for future use.

 

We are also starting to come across former Halifax Retirement Home Plan mortgage customers where Halifax/Scottish Widows have declined further borrowings due to the new MMR rules on affordability. Fortunately, we have assisted some of these retirees with the new ‘interest servicing’ products from the likes of Stonehaven, More2life & the Hodge Retirement Mortgage. All these plans could be made available following a full equity release review, where if appropriate we can find a scheme that allows further funds to be made available.

 

Lower Interest Rates:

There are legacy equity release schemes out there from companies that formerly offered lifetime mortgages. These companies, however have since stopped offering new lifetime mortgage or home reversion plans. These equity release companies can include Norwich Union (now Aviva), Prudential, NatWest Equity Release, Portman etc.

 

Another legacy equity release scheme we commonly come across is Papilio UK Equity Release (formerly Northern Rock), where many existing customers could benefit from new equity release plans that offer lower interest rates. There are ex-Northern Rock customers that are being charged over 7% with Papilio UK. The Aviva Flexi Lifetime Mortgage Plan can currently offer equity release interest rates as low at 5.63% (5.83% representative APR). By switching equity release schemes I have saved my clients £1000’s in compound interest over the longer term. A good deal for them & their beneficiaries!

 

Check ongoing affordability

Some of my clients have taken out a lifetime interest only mortgage with either Stonehaven or More2Life. They’ve chosen to pay a fixed monthly payment for the duration of the plan. However, both plans offer the flexibility of being able to stop payments at any time and let the interest roll up. Similarly, with the Hodge Retirement Mortgage you’re also able to switch to rolled up interest when the younger borrower reaches aged 80. These are things that should always be discussed at annual reviews.

 

Overall, the annual review call that I make to clients can be really worthwhile. It’s always nice hearing how they’ve spent and enjoyed their money. It’s usually another common time when they ask me to call one of their friends and family who’d also benefit from my specialist advice, as their friends and family have seen how equity release has changed their lives.

 

Other areas where I receive many calls from existing clients, which impact the need for further equity release advice, can include:

 

  • Moving House
  • Death of one borrower
  • Additional borrowing

 

Looking at these in turn…

 

Moving House:

Most equity release schemes are flexible and allow you to move at any time. However, advice is needed with regards to value of you property you can move into. You’re also able to repay most schemes early but this could be subject to a variable, or fixed, early repayment charge.

 

Death of a borrower:

It’s obviously a distressing time when you lose a loved one. I often receive calls from the survivor asking what options they have or what happens next. I’m able to answer their queries and explain the simple process of informing the lender. The main query is whether the survivor can remain in the family home, where the answer is usually yes.

 

Additional Borrowing:

Most lifetime mortgage schemes are set up with an automatic drawdown facility where you can contact the lender when you need funds from an agreed reserve at outset. However, once this is exhausted, or if you’ve got an older scheme without a reserve facility, I often get telephone calls to check eligibility for additional borrowing. Here we can help & contact the lender to check whether further funds could be made available from the equity release company.

 

Summary

Remember, equity release schemes are designed as lifetime mortgage contracts and therefore you need to review your situation regularly. I pride myself in offering this unique bespoke service and many of my customers can vouch for the benefits.

 

Should you feel you may benefit from an equity release review of your existing plan, please contact me – Mark Rumney DipPFS CeMAP on: –

 

m: 07957 974826 or

e: markrumney@equityreleasesupermarket.co.uk

Switch Equity Release from Papilio UK – Time is running out

Sunday, May 25th, 2014

Switch equity release from PapilioIn my last article on this subject in February 2013 I drew attention to the ease with which borrowers could escape the higher equity release  interest rates charged by Papilio UK, the successor to Northern Rock. I also reminded Papilio equity release borrowers that the option to take further loans from Papilio UK, an option Northern Rock originally considered, was no longer available.

 

Since my original Papilio article, Equity Release Supermarket have been inundated with enquiries leading to many satisfied clients switching to cheaper lifetime mortgages. And with many lifetime mortgage lenders currently offering free valuations and cashbacks, the costs of such transfers rarely exceed £1,500 – a sum that could soon be recovered through cheaper borrowing or funded by increasing the new mortgage.

 

Indeed, with fixed interest rates as low as 5.63% (5.83% representative APR) we have achieved savings for our clients of over 1.3% on their loans. With such low equity release interest rates, now is an excellent time to consider a remortgage from Papilio UK to a new provider.

 

Reasons to switch equity release plans

This could be for one of two reasons;

  1. To borrow additional funds & consolidate all old & new borrowings under one roof with a much lower interest rate.
  2. To simply swap equity release schemes on a like-for-like basis, but obtaining a much lower interest rate for the long term.

 

As an example in real terms, assuming that you remortgage a lifetime mortgage of £50,000 onto a fixed rate of 5.68% from a Papilio UK equity release mortgages rate of 6.99%, then after just 10 years the saving in interest charges would be in excess of £15,000. This would be not only beneficial for you if you require further borrow in the future, but also your beneficiaries who would now receive a larger inheritance.

 

Obviously, the larger the loan is, the greater the potential savings. This in turn would make large savings for your ultimate beneficiaries. Think of switching equity release schemes like any residential remortgage; you want to obtain the best rate for your outstanding debt, so as not to pay any more interest than necessary to the mortgage lender. The equity release switch principle works in exactly the same way.

 

New equity release schemes have greater benefits

In addition to the cheaper cost of borrowing, many lenders with whom you can swap equity release schemes to have now developed much more flexible lifetime mortgage plans.

 

For example, you could select a new lender with various penalty free options. The most recent innovations in the lifetime mortgage market are:

  1. Lifetime mortgage plans with Hodge Lifetime & Aviva where voluntary repayments of upto 10% per annum can be made each year. These ad-hoc repayments enable you to ‘control’ the future balance of the loan. This could be to maintain a level balance or even use it as a capital & interest mortgage by repaying the whole balance over a set number of years.
  2. Downsizing protection option from Hodge Lifetime which allows full repayment of the plan after 5 years by “trading down” your home. Therefore, if you move house & downsize you have the option to clear the whole mortgage debt & end up equity release ‘free’.
  3. Depending on the value of your property, you could remortgage to a new drawdown lifetime mortgage where a cash reserve facility could be established for ready access to further loans in case of future need ( a great way of protecting a surviving spouse on a reduced income)
  4. The option to protect a percentage of the eventual sale proceeds of your home with a guaranteed inheritance protection option for your children and beneficiaries.

 

So why consider switching from Papilio UK now?

The present economic conditions will not last for ever. Long term interest rates have started to creep up and the recent increase in property values in certain parts of the country might not be sustained. The Governor of the Bank of England warned over the weekend about the danger of the property “bubble” bursting, and this could remove from those with larger loans the opportunity to escape the higher interest rates charged by Papilio.

 

In our opinion, the time to act to escape Papilio UK equity release mortgages is NOW before interest rates increase and property values fall. And if you intend to take action then swapping equity release scheme from Papilio could be your recommended ‘escape route’

 

For further information, or to receive a FREE initial consultation, please contact me, Mike Vicary, on 07795 195302 or if you prefer email mike@equityreleasesupermarket.co.uk where I would be more than happy to discuss your options.

 

The Papilio UK remortgage process

In the meantime it would be advisable to write to Papilio UK to obtain an up to date redemption statement to include all fees and the ongoing daily accrual of interest. Their address is:-

PO Box 1003, Ipswich, Suffolk, IP1 9UZ (Tel: 0844 8464716).

 

Armed with this information, I can then discuss with you your financial position and future plans and make a formal recommendation, if appropriate. You would receive clear details of the benefits to you of the Papilio UK remortgage and a full breakdown of costs.

 

Assuming you accept my recommendations, then we would complete the application paperwork at a mutually convenient home visit (preferably with family members present) or by post.

 

Following that Equity Release Supermarket would then oversee the valuation of your home by the new lender and we would instruct your solicitor on your behalf.

(We would strongly suggest appointing a specialist solicitor from our recommended panel to ensure that the transaction is completed as quickly and efficiently as possible.)

 

Our new business administration department would then manage your equity release application through to a successful completion by liaising with your new provider, solicitors & yourself. Once arranged, the Papilio UK equity release mortgage would have been repaid & the outstanding balance transferred to your new lifetime mortgage company & taking full advantage of the new lower rate &/or additional borrowing.

 

The time to take action is now.

 

Please do contact me for a free consultation on 07795 195302 or email mike@equityreleasesupermarket.co.uk

Why Are You Still With Papilio UK Equity Release?

Friday, February 15th, 2013

Are you one of those lifetime mortgage borrowers who were originally with Northern Rock but, since March 2012, have seen the ownership of your mortgage transferred to Papilio UK Equity Release Mortgages Ltd, a subsidiary of J P Morgan?

 

If so, do you realise that you are probably paying interest at more than 1.3% higher than rates charged by some other lifetime mortgage lenders? And Papilio UK Equity Release no longer allows you to take further loans from the equity in your home, an option Northern Rock originally considered!

 

If so, you could make considerable savings by the simple process of remortgaging to another regulated lifetime mortgage lender. With equity release schemes now in the prime of their life, now has never been a better time anyway to consider an equity release remortgage.

 

For example, assuming you remortgaged an equity release balance of £50,000 onto a fixed rate of 5.60% instead of the 6.99% currently charged by Papilio UK, after 10 years you could save yourselves, and your beneficiaries approximately £12,000 in interest charges.

 

Competitiveness & Flexibility of New Plans

Depending upon the value of your home, many new lenders will allow you access to further loans either immediately, or by providing a cash reserve to draw upon at your discretion. Drawdown lifetime mortgages now account for the majority of equity release schemes taken out and provide best advice for those retirees that only need a smaller upfront lump sum, but may require additional cash in the future.

 

Modern day lifetime mortgage schemes have surpassed the rigid plans of old. Since Northern Rock (aka Papilio Equity Release) withdrew providing equity release mortgages the market has seen diversification unseen before. With the advent of interest only lifetime mortgage schemes, we have experience of people actually switching from old roll-up lifetime mortgage plans. Where they feel the balance has reached a point whereby they no longer want it to increase any further, they can switch to an interest only lifetime mortgage. This option may never have been available in the past.

 

A free initial comparison offer

Should you have a Papilio UK equity release mortgage then you will undoubtedly be paying over the odds on your interest rate. Many people contact us who hold an existing Northern Rock mortgage and ask for the Papilio UK equity release mortgages ltd telephone number to contact them.  Equity Release Supermarket has advisers that are experienced in analysing whether it would be in one’s interest to switch equity release schemes.

 

As acknowledged specialists, Equity Release Supermarket has given objective advice to increasing numbers of applicants seeking to remortgage from Papilio UK and we have guided them painlessly through the remortgage process.

The switch analysis will take into account the set up costs of the proposed new equity release mortgage. These costs can be lower than anticipated, especially as J P Morgan/Papilio equity release have indicated in the past that they will waive early repayment charges.

 

Allied to the current practice of many lenders offering free valuations and paying “cashbacks” of upto £1000, then equity release companies such as Aviva can offer a new safe haven for your mortgage. By providing a smooth transition in the equity release application process you can seamlessly transfer you Papilio (Northern Rock) equity release plan to a more competitive rate benefitting yourself & beneficiaries in the long run. Aviva are currently offering rates to Equity Release Supermarket customers starting at 5.57% annual.

 

If you want to join those who have successfully made the transition from Papilio UK then please do contact Mike Vicary of Equity Release Supermarket, on 07795 195302 for a free initial consultation.

 

 
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