Archive for June, 2009
Prudential Confirm New Lifetime Mortgage Valuation Providers
Prudential have confirmed that Countrywide Surveyors and Rightmove AVM will be their new joint valuation providers for their lifetime mortgages.
The new business model sees Countrywide Surveyors providing the physical valuations, whilst Rightmove will provide the automated valuation models.
The director of lifetime mortgage at Prudential, Keith Haggart commented: “Countrywide Surveyors and Rightmove had the expertise and capability to serve our valuation needs.
Equity Release: Top 10 Questions Answered
Here are the answers to the top 10 legal questions regarding equity release that you should consider before deciding whether equity release is right for you.
Why are the interest rates so high compared with base rates?
Equity release plans are only repayable when the homeowners vacates and sells the property or upon the death of the homeowner. Equity release providers have no way of knowing when this will be; therefore they have to be able to fund their scheme on a long-term basis.
Taking a more longer-term view than normal mortgage providers means equity release providers have to set a higher interest rate. However, as the competition in the market between lenders intensifies these interest rates could well lower.
Beginners guide to Equity Release Loans
Equity release loans can help you if you’re looking to raise a lump sum of cash for a costly purchase like a new car or home improvements, or simply consolidating some debts and credit cards to bring down those steep interest payments. Loan rates have never been lower than they are right now, and equity release loans are a safe and secure way to release some of the value locked in your house.
Release Equity Calculators
Lots of you will have heard about equity release but are reluctant to look into it further because you’re unsure how interest rates work on a lifetime mortgage. Release equity calculators are widely available online and designed to help you estimate the value of your remaining equity at various points in the future. Release equity calculators are quick and easy to use and are based on your personal circumstances and your view on house price inflation.
If you think a lifetime mortgage plan could change your life for the better then find out whether you’ll qualify with a release equity calculator. By entering your age and the value of your property, a release equity calculator will tell you firstly whether you’re suitable, and also the amount of equity you might be able to unlock from your home.
Is an Equity Release Lifetime Mortgage for you?
An equity release lifetime mortgage is proving to be an ideal solution for many UK homeowners over 55 who feel that their pension funds or current savings aren’t stretching enough for them to lead the life they want. That’s because an equity release lifetime mortgage allows you to unlock the value tied up in your home and you can use the cash as you wish without having to make monthly repayments or move out of your home. As with all financial planning it needs to be considered carefully alongside other financial options, which is why it’s important to get the very best advice from a trusted equity release lifetime mortgage provider.
Pensioners Benefiting From The Vehicle Scrappage Scheme Thanks To Equity Release
New research has shown that the over 60s are amongst those benefiting from the Governments new vehicle scrappage scheme. The research from Key Retirement Solutions (KRS) revealed that the over 60s are funding their new car purchases by releasing equity from their homes.
State-Supported Equity Release Scheme Could Improve the UKs Care Funding System
Respected body, The Joseph Rowntree Foundation (JRF), suggested in a report published last month that by 2050 the spending on long-term care for the elderly will need to increase fourfold as there will be twice as many people aged over 85 as there are today.
In the report, entitled ‘Options for Care Funding: What could be done now?’, the author stated: “Everyone, including the Government, agrees that the UK needs a new long-term care system but it may be a decade before a new system is in place. These reforms (i.e. those outlined in the JRF report) could quickly make a difference to older people and their carers struggling to cope under the present system.”
Equity Release Can Help Divorced Pensioners
SHIP, the equity release trade body, commented on figures extracted from the Office of National Statistics this week; these figures found that the over 60s are the fastest growing age group for divorce and SHIP suggest that equity release might be the short-term solution for divorcing pensioners.
Why should I apply for an Equity Release Scheme?
The right equity release scheme could mean the difference between a comfy retirement and a constant worry about paying the bills. Sadly, lots of retired people face a substantial drop in income, which often means that they have to consider downsizing their home and moving into something cheaper to afford a more comfortable lifestyle. An equity release scheme allows homeowners aged 55 and over to significantly boost their income by raising a large sum of money or regular income without having to sell their home and without having to pay rent or loan repayments.
‘Dabblers’ are a cause of concern for the Equity Release industry
SAFER (Specialist Advisers for Equity Release), have stated that criticisms of the Equity Release sector by the consumer organisation Which must be taken seriously, despite a backlash from brokers over the report.
At a recent equity release debate, hosted by the trade body SHIP (Safe Home Income Plans), Which revealed results of a mystery shopping exercise conducted among intermediaries. The results of the exercise showed that the level of advice provided was particularly poor.
