Equity Release from Age Partnership

Is Equity Release the Answer to the Pension Crisis?

Mark-Blanchfield — Thu, 11 Mar 2010 09:48:35 +0000

According to an All Party Parliamentary Group, equity release schemes could help Britain’s retired homeowners beat the pension crisis. However, they have stressed that better quality services, like high quality advice, should first be introduced by the equity release providers.

The All Party Parliamentary Group led by Baroness Hollis of Heigham and comprising of high ranking politicians from across the parties believe that, as more homeowners turned to equity release during the recent recession, others too could benefit from the merits of the equity release market.

Yet to achieve this, the image of the equity release market should be improved and the Government needs to show greater support.

Unlocking Some of the Value in Your Home with Equity Release

The burden of financial security in retirement is a major issue facing today’s Government with the collapse of the final salary schemes and the cost of living rising. This has led to some homeowners considering an equity release scheme.

Equity release schemes have the potential to unlock a lump sum or regular payments to supplement income in retirement. Yet people are still unsure about surrendering a stake in their home.

“Equity release products represent a real and immediate solution to financial problems facing older people”

Incorporating the Government could lead to better support and, as such, more transparency about the equity release market. This would dispel the levels of confusion that can sometimes put homeowners off.

For instance with any lifetime mortgage accredited by Safe Home Income Plans (SHIP) there is a no negative equity guarantee meaning that homeowners will never owe more than the value of their property and retain 100% ownership.

Andrea Rozario of SHIP said: “It is gratifying to see housing equity taking its place in the mainstream retirement funding canon. Of course, developments must be made and challenges lie ahead for providers, distributors, government and consumers alike - but the debate produced by this Group is the first vital step in bringing equity release much closer to the heart of government thinking.

“SHIP remains committed to changing the way that the equity release industry has historically been perceived. Equity release products represent a real and immediate solution to financial problems facing older people every day.”

Save Money with LV=’s Preferential Lifetime Mortgage

Janice-Walsh — Tue, 09 Mar 2010 09:36:15 +0000

LV= are giving Age Partnership customers, considering an equity release scheme, the chance to save a little bit on the setting up costs with their preferential lifetime mortgage.

All homeowners considering an equity release scheme and whose property is under £500,000 can make the most of LV=’s free house valuation. LV= are one of the most trusted services in the financial industry and they are now offering to help Age Partnership customers with this offer of a free house valuation.

Fixed, Low Interest Rate Lifetime Mortgage

The offer of a free valuation as part of this preferential lifetime mortgage could save you hundreds of pounds. As well as this you will also benefit from a low fixed interest rate with this lifetime mortgage. The overall cost for comparison is 6.8% APR.

One of the many benefits of a lifetime mortgage is the guarantee of no negative equity. This means that you continue to own 100% of your property so that you can benefit from any increases in the market. Additionally, if house prices fall you will never owe more than your property is worth.

This forms part of the code of conduct that comes with being a part of Safe Home Income Plans (SHIP).

Search Equity Release Schemes from the Whole Market

If this lifetime mortgage isn’t right for you then Age Partnership will search the whole of the equity release market to find you the right plan. An equity release scheme has the potential to unlock a lump sum or regular payments to help supplement your income in retirement.

Can You Reduce The Cost Of Setting Up An Equity Release Scheme?

Mark-Blanchfield — Mon, 08 Mar 2010 11:25:32 +0000

If you are considering an equity release scheme it is important that you get the right one for you and your circumstances. In the setting up process you need to ensure you get the right information and this will come at a cost.

However, to help you save money and potentially get more from your equity release scheme there are a number of things you can do.

The four main costs attributed to setting up an equity release scheme are:

•    Valuation fee
•    Advisors fee
•    Solicitors fees
•    Lenders application fee

It is possible to save money on each of these, although this should never be done to compromise the quality of service.

Valuation Fee for an Equity Release Scheme

In order for an equity release broker to assess how much you can release they will first need a valuation your property. There is typically a cost involved in this but using a specialist broker like Age Partnership can sometimes afford you preferential deals.

Because Age Partnership searches the whole of the equity release schemes market they often find plans which offer no valuation fee.

Advisors Fees for an Equity Release Scheme

These will vary between equity release brokers. Some brokers will charge advisors fees up front so it might be better to consult equity release specialists who can provide a free initial service. Age Partnership’s initial advice is free and comes without obligation. You will only be charged a fee when you complete an equity release scheme deal.

Solicitors Fees for an Equity Release Scheme

This is an area where you will have a good opportunity to shop around and find the best solicitors for you and your budget.

Lenders Application Fee for Equity Release Schemes

This will vary depending on the equity release scheme you choose. Lifetime mortgages application fees will be fixed at a set price, varying between providers whereas you might find some home reversions don’t have any. This is because they are built into the full or partial transfer.

However, when looking around for an equity release scheme and provider, look out for deals that offer you cash back on a purchase which will reduce the net cost.

The key to all of these savings is to thoroughly do your research and shop around for the best deal.

Age Partnership Voted Best Equity Release Mortgage Broker 2010

Janice-Walsh — Thu, 04 Mar 2010 09:49:25 +0000

At the recent Mortgage Strategy Awards, Age Partnership was voted as the leading equity release mortgage broker for 2010. The over-the-phone, independent equity release specialists triumphed in a competitive section and claimed an award that recognised their commitment to the market.

The eighth annual Mortgage Strategy Awards were held on the 24th February 2010 at the Grosvenor House Hotel and marked a busy evening of awards from a range of sectors including equity release, mortgages and insurance.

“Proud of the focus and dedication that we continue to show”

An experienced panel of industry experts judged the awards. Amongst them was Andrea Rozario, director general of Safe Home Income Plans (SHIP) – who provides a code of conduct for the equity release market. Tim Loy, Chief Executive of Age Partnership comments:

“These are exciting times for the company. Our performance in 2009, coupled with the recognition that we received at this week’s Mortgage Strategy Awards, are both a big compliment to the exceptional team that I work with.

“I am extremely proud of the focus and dedication that we continue to show for delivering excellence in customer care.”

Getting the Right Equity Release Advice This Month

Mark-Blanchfield — Wed, 03 Mar 2010 10:06:48 +0000

In what was quite a quiet month in the equity release market, a handful of positive endorsements caused the biggest commotion; notably David Blunkett’s approval of equity release schemes.

Aside from this, the theme of the month was advice - and getting the right kind of equity release advice.

Positive Equity Release Endorsements

In-keeping with the trend of recent months, further house price rises ushered in February; although the percentage increase was minimal. The Nationwide and Halifax recorded a 0.6% increase for the month of January making the average UK house valued at £169,777. However, the minimal nature of the increase supported predictions of the market levelling-out.

Following this news was The Conservatives’ announcement that they would be incorporating equity release into an investigation about funding for care. It was a timely decision following David Blunkett’s ringing endorsement of equity release, in which he stated “it obviously has a future in helping to deal with the most enormous challenges facing us as we age.”

Important Equity Release Advice

Following this positive news came some timely information, firstly in the shape of the benefits of over-the-phone equity release advice.

Flexibility and freedom to choose were cited as two of the key factors and both featured in five reasons why equity release has a bright future as discussed at the fifth annual members’ survey. The mood was very much one of optimism with predictions about more equity products becoming available and a greater awareness from the Government likely to help the market in the future.

With such optimism circulating in the market, and inspired by Safe Home Income Plans (SHIP) praised code of conduct, a list of questions to ask an equity release advisor was timely.

Don’t forget to check out our monthly equity release video too with up-to-date news and exclusive deals.

Homeowners May Still Benefit from Equity Release Schemes Despite House Price Fall

Mark-Blanchfield — Tue, 02 Mar 2010 13:44:44 +0000

The average UK house price dropped during February for the first time in ten months but equity release customers will be encouraged that the average price of a UK property is still up on a three month basis.

According to the Nationwide, the average UK house is now valued at £161,320, which is a 1% decrease compared with January. However, more encouragingly the Land Registry reported that the average house price of £165,088 in January is 5.2% higher than in January 2009. This means homeowners considering an equity release scheme may still be able to benefit from releasing more than they could have a year ago.

A Stable Market Could Benefit Equity Release Schemes

Last month we reported on January’s modest house price rise and how it is slowing in-line with industry predictions of a stable year. This stability could further encourage homeowners to consider an equity release scheme if they are thinking of ways to support retirement income.

An equity release scheme has the potential to unlock a tax-free lump sum or regular payments depending on which equity release scheme you choose.

Due to continued house price increases in the property market over the past 12 months, many homeowners have considered equity release schemes to make the most of the value in their home. And it would be premature to consider this marginal decrease as a reversal back to declining values.

Premature to Call Decrease a Change in Pattern

Instead, factors like the heavy snow fall and the ending of the stamp duty holiday may have contributed to the 1% decrease month on month. Martin Gahbauer, Nationwide’s Chief Economist, said:

“The price of a typical UK property fell by a seasonally adjusted 1.0% month-on-month (m/m) in February, ending a strong run of nine consecutive monthly increases. The relatively smoother three month on three month rate of inflation remained positive at +1.6%. The average price of a typical property sold in the UK during February was £161,320.

“There is evidence from a range of indicators that the market may have lost momentum in early 2010 as the stamp duty holiday ended and house hunters were obstructed by the icy weather.”

7 Questions to Ask an Advisor About Equity Release Schemes

Janice-Walsh — Wed, 24 Feb 2010 09:52:31 +0000

According to Hodge Lifetime, seeking specialist equity release scheme advice is playing a greater role in the equity release market.

So in order to get the perfect equity release scheme there are a number of important questions you should ask to get the right advice and right advisor!

Are you regulated?

The Financial Services Authority (FSA) is the independent body that regulates the financial services industry in the UK. It sets the standards firms must meet and can take action against firms that fail to meet the required standards. Additionally Safe Home Income Plans provide a code of conduct for equity release providers and it is advisable to use a provider that is recognised by SHIP or a provider which offers similar guarantees.

How unbiased is your advice?

It seems like quite an abrupt question but it is important because there are two types of advisors – tied and non-tied. Ideally you are looking to get your equity release advice from a non-tied advisor because they can offer you a scope of products from any provider. Tied advisors are limited to the products from a smaller number of providers.

What is your equity release background?

This is a great way for you to ascertain an idea of a company’s background and how established they are in the equity release scheme market.

Are the equity release schemes suitable to my profile?

It is a fair question to want to know if all of your circumstances have been considered when an equity release scheme is recommended. Some of the key things an advisor needs to consider are age, lifestyle, existing income and state of your finances.

What do you know about the equity release scheme?

Make sure you get plenty of information about the equity release scheme recommended and why that particular one has been recommended rather than other equity release schemes. You might also want to ask them about how it affects your benefits entitlement, inheritance and ownership should you move into care.

What costs will I have to pay?

There will be costs for the actual equity release scheme and also fees to pay. It is beneficial to get a clear understanding of these early on so you can plan thoroughly and budget properly.

How does this equity release scheme compare to other products?

Ask your advisor why they chose a particular equity release scheme as opposed to others and how the costs would compare if you used a different means to get a plan.

These questions could form a useful starting point to ensure that you get the right advisor and also the right advice about equity release schemes.

Five Reasons Why Equity Release Has a Bright Future

Janice-Walsh — Thu, 18 Feb 2010 13:52:37 +0000

According to Safe Home Income Plans’ (SHIP) fifth annual members’ survey, the equity release market faces a bright future. There are five key factors that contribute to this.

A Growing Role for Equity Release

The growing numbers of retirees balanced against a gaping pension deficit is forcing many homeowners to look at alternatives to help fund retirement. The positive performance of the equity release market in the fourth quarter of 2009 suggests that more people are once again considering such schemes with confidence.

More Products to Fulfill Homeowners’ Needs

Choice is a valuable tool in the equity release market because each homeowner will have different needs and preferences. It is therefore encouraging that the potential for more products – perhaps aided by more entrants into the market – will increase. In fact 40% of the member’s asked in SHIP’s survey believe that new entrants will arrive in 2010.

Greater Regulation Leading to Greater Trust

Regulation in the equity release market is far more stringent than in previous years, which is helping return trust to the market. 21% of the members questioned in SHIP’s survey felt that these tighter regulations were helping customers to get the right advice and professional service needed. In fact 40% of equity release customers are now taking more than six months researching products before making a decision; aided by more advice and information available.

Awareness from the Government About the Role Equity Release Can Play

The issue of funding care for the elderly is one that won’t go away, especially as we are an ageing population. This has led to calls for equity release to gain recognition as a reputable source to fund care. The fact that there is over £700 billion in housing equity has led to the Conservatives to incorporate equity release into their funding for retirement inquiry.

A Strong Code of Conduct

SHIP’s code of conduct continues to be a key factor for the equity release market. A third of member’s asked believed that the strength in this code of conduct will help the equity release market going into the future.

Andrea Rozario, director general of Ship, said: “The equity release industry has developed considerably over the years and has strong safeguards in place to protect consumers and intermediaries.

“There will be more than 18m over 55s in the UK by 2011 – many with insufficient retirement savings but significant housing equity – therefore it is vital that consumers have the confidence to speak to an expert about equity release rather than struggle to survive.

“On a more positive note, given lack of funding has been a serious issue for some of our members we are pleased to see that many providers feel additional funding will be achieved in 2010. With more and more institutions looking for solid long term investments, we hope that more will take a serious look at the benefits of equity release assets.

“We are also delighted to see that our members believe that 2010 will be the year when the government will become more involved.”

3 Key Benefits of Equity Release Phone Advice

Mark-Blanchfield — Tue, 16 Feb 2010 15:14:11 +0000

How you get your equity release advice can be as important as the actual guidance you receive. To this end we have taken a look at equity release, phone-based advice and identified three key benefits.

No Pressure to Choose a Particular Equity Release Scheme

Having over-the-phone advice as well as face-to-face guidance is important when it comes to a customer deciding if equity release is for them.

Not everyone’s personality is the same so whereas some people prefer to talk face-to-face, others might feel pressured in this environment. This could lead to the latter making a forced decision. Having the option of making a telephone call allows the customer to take the initiative and direct a conversation in comfortable surroundings.

Flexibility for Equity Release Advice

Equity release advice over the phone gives customers flexibility. Being able to call up and ask a troubling question, or perhaps reinforce existing knowledge when they want, will put many customers considering an equity release scheme at ease.

The sense of immediacy that over-the-phone guidance achieves affords customers the opportunity to receive equity release advice when they want.

No Need to Plan Equity Release Advice Meetings

Not having to plan and prepare for a meeting can save customers time and being able to talk in comfortable surroundings enhances a relaxed mood.

Being at home whilst discussing equity release over the phone will also mean all your relevant paperwork is close to hand and you don’t have to worry about forgetting anything.

Equity release advice delivered over the phone (or face to face) is regulated and often provided by specialists so you will receive a professional service.

By asking the right questions and gaining the relevant information, a specialist can discover your equity release needs and search the whole of the equity release market to advise you on the right scheme.

The Wealth of Equity Release Begins To Be Appreciated

Janice-Walsh — Fri, 12 Feb 2010 09:07:32 +0000

This week the Conservative Party announced that they will be launching an inquiry into funding for retirement; incorporating equity release. This move has been backed by Safe Home Income Plans (SHIP).

It also comes hot on the heels of David Blunkett’s glowing endorsement of the equity release market.

“Equity release obviously has a future”

Speaking at the first annual equity release lunch hosted by SHIP, David Blunkett said: “With a substantial amount of the £700billion UK housing equity potentially available for equity release, it obviously has a future in helping to deal with the most enormous challenges facing us as we age.”

With dwindling pensions and more homeowners struggling in retirement, equity release has the potential to supplement income. Through lump sum payments or regular installments – all tax free – an equity release scheme could help improve a homeowner’s lifestyle.

It also appears that Independent Financial Advisors (IFAs) are playing a greater role in introducing customers to equity release - accounting for 40% of introductions in the final quarter of last year.

This is helping to promote a greater understanding of the equity release market and its benefits whilst ensuring that customers get the right advice.

“Astounding wealth held in housing equity”

The proposed Conservative inquiry is another timely boost to the equity release market. Andrea Rozario, director general of SHIP, said: “An astounding 40% of the UK’s household wealth is currently held in housing equity but only 1% of UK pensioner households tap into equity release products.

“It is vital that this topic is addressed, especially at a time when the welcome improvements in longevity are, unfortunately, coinciding with a downturn in saving for retirement.”