Equity Release from Age Partnership

Low, Fixed Interest Rate Lifetime Mortgage

Mark-Blanchfield — Mon, 26 Jul 2010 12:30:51 +0000

Releasing equity is a great way to supplement your income in retirement and right now you could benefit from a low, fixed interest rate lifetime mortgage courtesy of Aviva and Age Partnership.

The preferential plan offered to Age Partnership customers by Aviva makes the most of the low interest rates in the UK and will allow you to fix these for life. The overall cost for comparison is 6.7% APR.

What’s more, a main feature of any roll up lifetime mortgage will mean that you won’t have any monthly repayments to make. Instead, the value of the equity release plan will be paid when you leave your home either to move into full-time care or you pass away.

Cash Bonus Too

As well as benefitting from the low, fixed interest rate, customer’s taking out this preferential lifetime mortgage will also get £200 cash on completion.

Plus, with all equity release schemes being tax-free, you can benefit further from the value of your home with this plan.

This preferential lifetime mortgage is only available for a limited time so you’ll need to move quickly to enjoy its benefits and make the most of the value of your home.

SHIP Encouraged By Second Quarter Performance

Janice-Walsh — Mon, 26 Jul 2010 08:56:38 +0000

Safe Home Income Plans (SHIP), the trade body for the equity release market, have released figures pertaining to the performance of the market in the second quarter of 2010.

Despite a small percentage drop in total market advances there is encouragement that would suggest the decline is slowing and remaining providers are eating up more market share.

“Strong Growth in the Coming Months”

The total market advances dropped by 8% from £213.4 million in the first quarter of 2010 to £196.7 in the second quarter. However, the average amount advanced grew from £45,251 to £45,702 and most encouragingly, from SHIP’s point of view, the amount of market share taken up by existing providers is growing.

Andrea Rozario, Director General of SHIP, felt the latest stats showed a slowing of the decline. She said:

“Data from members for the second quarter of 2010 clearly shows that the decline in the market, which started in the final quarter of 2008, has reached its nadir. There are signs that a number of important initiatives spearheaded by SHIP - and its members - are working to grow the market.

“I am pleased to see that the tide of withdrawals from the market may finally be turning with the re-entry of a former provider - More2Life - in recent months. Finally, it is clear that current providers are absorbing the demand which was previously supplied by those exiting the market in the last 12 months. I look forward to seeing reports of strong growth from members over the coming months.”

Three Quarters Say Equity Release is Right For Them

Mark-Blanchfield — Thu, 15 Jul 2010 10:00:13 +0000

The Age UK report, released last week has suggested that over three quarters of equity release customers felt the plan was right for their needs. Plus 97% of customers suggested they were satisfied with the plan they took out.

Age UK’s report – Housing and Finance in Later Life – should go some way to improve the image of equity release and perhaps strengthen its appeal as a source of finance in retirement.

“97% Felt Satisfied With the Plan they Took Out”

Safe Home Income Plans (SHIP) have been encouraged by Age UK’s findings, feeling that it could help strengthen the case for equity release as a means of retirement planning. Laurie Edmans, chairman of SHIP, said:

“Indeed, with 97% of respondents saying they felt satisfied that the plan they took out was the right one for their needs, this study goes a long way towards dispelling some of the myths about equity release.

“When this new report is considered alongside evidence from the Pensions Policy Institute and the SHIP discussion paper, the case for equity release to be seen as a standard part of retirement planning is serious and close to becoming irrefutable.”

Equity release has the potential to unlock a tax-free lump sum from the value of a property to supplement income in retirement.

Age UK Report Delights SHIP

Janice-Walsh — Wed, 14 Jul 2010 10:30:59 +0000

Following the release of a research paper by Age UK, looking into equity release, Safe Home Income Plans (SHIP) – the trade body for the equity release market – have responded in a positive manner to the findings.

Age UK’s report – Housing and Finance in Later Life – showed that as many as a third of equity release customers are using the service to clear debt, whilst it also showed a high level of satisfaction amongst customers. Laurie Edmans, chairman of SHIP commented on the findings. She said:

“Age UK is a hugely respected voice on issues affecting the over 55s and we are delighted that they have chosen to review the equity release market in more detail.”

“A Case for Equity Release as a Part of Retirement Planning”

She continued by saying that the high level of satisfaction amongst customers was encouraging and should “dispel some of the myths.” She said:

“The feedback within the report shows that there is a high level of satisfaction amongst equity release customers - a ringing endorsement of an often maligned industry.

“SHIP has campaigned long and hard over the years to introduce and support a raft of safe-guards aimed at dealing with past problems.

“The no-negative equity guarantee and introduction of specialist equity release qualifications are but two of the steps that the industry has taken to ensure that customers are able to access the equity in their homes with confidence.

Homeowners Battle Recession by Releasing Equity

Mark-Blanchfield — Mon, 12 Jul 2010 08:42:06 +0000

As many as a third of equity release customers are releasing some of the value from their homes to pay off debts.

According to new research commissioned by Age UK and carried out by The University of Birmingham, more homeowners are turning to equity release as a means of easing the burden of debt.

“Equity Release Is a Useful Tool”

This has been particularly prevalent in the past 18 months as the UK battles the recession and many retired homeowners seek additional sources of income. With pensions dwindling and the cost of living rising, many of these retired homeowners are beginning to notice the disparity between the two, leaving many struggling.

However, it wasn’t just about clearing debt. Almost a half of the equity release customers asked said that they put the money towards house maintenance.

Michelle Mitchell, Age UK’s charity director, said: “Equity release is clearly a useful tool to ease financial pressures in later life, but anyone considering it as an option should first seek good quality information and advice.”

By consolidating your existing unsecured debts, you may extend the term and overall cost of these debts.

Pensioner Couples Need £222 a Week

Janice-Walsh — Thu, 08 Jul 2010 08:22:30 +0000

The average pensioner couple will require £222 a week, excluding rent, to be able to live to an acceptable standard. This is according to research carried out by the Joseph Rowntree Foundation (JRF) and, with the pension crisis at the forefront of people’s thinking, it might make an equity release scheme an option in the future.

The study looked at all age groups and demographics and suggested that a single person needed £14,400 a year to live to an acceptable standard.

It also shed light on the growing disparity between the national minimum wage and the minimum required to live an acceptable lifestyle.

Can Equity Release Help with the Cost of Inflation?

The rising cost of inflation, for many of life’s necessities, has been attributed to the increase in the minimum amount needed for an acceptable standard of living.

With many homeowners not having enough income in retirement to match the increases in inflation, they might find an equity release scheme can give them the additional finance required.

Equity release schemes have the potential to unlock a tax-free lump sum from the value of your home. This can be used to supplement income in retirement to help cater for a comfortable lifestyle.

The Budget and House Prices Affect Equity Release

Mark-Blanchfield — Tue, 06 Jul 2010 15:28:30 +0000

During the month of June the equity release market was once again affected by house prices, both positive and slightly negative based on different sources, whilst the “Emergency” Budget, announced by the coalition Government, also impacted on the equity release market.

Like most recent months, the equity release market was boosted by the announcement of further house price rises, with the Nationwide showing a 0.5% increase during the month of May.

This average increase in house prices will have been good news for potential equity release customers hoping to use the value in their homes to improve their lifestyles. This is a popular motivation to release equity, with 14.20% of Age Partnership customers citing this as the reason to take out a plan.

State Pensions and Housing Equity Growth

State pensions and having enough funds in retirement continues to be a major concern in the UK. With so many potentially affected, equity release continues to be mentioned as a suitable supplement to income.

During the middle of the month, it emerged that housing equity grew by another £2billion to take it to £767billion in the UK. This increase in housing equity led to suggestions that equity release should be considered to help with the pension deficit.

In an interesting study conducted by Aviva, financial planning and self esteem were linked, with those in control of their finances generally enjoying a better lifestyle.

The Budget Cuts Could Lead to More People to Use Equity Release

The announcement of the Budget saw VAT increases grab the headlines, with many over 55-year-olds likely to be affected. This led to Andrea Rozario, director general of Safe Home Income Plans (SHIP), claim that “equity release would seem like the logical answer to Government changes.”

Following the Budget announcement, the Government released details of their plans to bring forward the date when retirement ages will be pushed back.

As the month drew to a close, the Land Registry showed 0.1% decrease in house prices in the UK. However, despite the drop it suggested that the housing market is stabilising and year-on-year average valuations were up.

The month concluded with some research from Scottish Widows that suggested that less than 50% of people are saving enough for retirement.

Don’t forget to follow all the latest equity release news with Age Partnership’s equity release videos.

Nationwide Report House Price Increase

Mark-Blanchfield — Thu, 01 Jul 2010 16:05:30 +0000

After the Land Registry reported that house prices had dropped marginally in June, the Nationwide have released their figures that suggests house prices crept up by 0.1%. Whilst the drop reported by the Land Registry was minimal many homeowners considering equity release will be encouraged with these findings from the Nationwide.

Furthermore, they revealed that house prices were up by 3% compared with the start of the year. This could mean that potential equity release customers might be able to release more from the increased value of their homes.

“Broad stability for the housing market”

The minor increase of 0.1% has taken the average price of a house in England and Wales to £170,111. This means that in the first six months of 2010, UK property prices increased by 3%. It marks a period of stability in the housing market, which will be good news for equity release customers. Martin Gauhbauer, Chief Economist for the Nationwide said:

“The month of June presented a picture of broad stability for the housing market. The price of a typical UK property rose by a seasonally adjusted 0.1% month-on-month (m/m), following a 0.5% increase in May. The smoother 3 month on 3 month rate of change rose marginally from 1.7% to 1.8%. Over the first half of 2010, UK house prices have risen by a cumulative 3.0%.”

Equity release has the potential to unlock a tax-free lump sum from the value of your home to supplement income in retirement.

Less Than 50% of People Are Saving Enough for Retirement

Janice-Walsh — Wed, 30 Jun 2010 16:36:10 +0000

According to a new survey by Scottish Widows, only 48% of people are saving enough for their retirement. With such a shortfall in pension savings, alternative sources of income like equity release schemes might be needed.

This percentage of savers has dropped by 6% compared to last year and it takes it to its lowest level since 2006. One of the key contributors to this lack of savings is the economic downturn, according to 41% of people asked.

Equity Release Can Make Up For the Pension Shortfall

With many over-55’s facing up to the possibility of not having enough income in retirement, homeowners might consider an equity release scheme. Equity release schemes have the potential to unlock a tax free lump sum from the value of a home. The cash generated from this can be put towards anything, with many homeowners investing in their retirement so that they can enjoy it to the full.

Ian Naismith, head of pensions market development at Scottish Widows, said: “The whole nation is feeling worse off than a year ago and this is really starting to take its toll on pensions savings.

“While there are signs that the economy is recovering, the nation’s saving habits paint a very different story.”

Slight House Price Fall Shouldn’t Deter Equity Release Customers

Mark-Blanchfield — Tue, 29 Jun 2010 11:13:36 +0000

According to the Land Registry, house prices dropped by 0.2% in May when compared against April’s figures. However, this shouldn’t put off customers considering an equity release scheme because the average price of a house in England and Wales is still 8.2% higher than at the same time a year ago.

This is the seventh consecutive month that there has been a year-on-year increase in the average price of houses in England and Wales. However the month-on-month drop marks a change in the current trend.

Unlocking the Value in Your Home

The average price of a house in England and Wales, according to the Land Registry, is now valued at £165,314.

An equity release scheme has the potential to unlock some of this value in your home. Using equity release you could unlock a tax-free lump sum to supplement your income in retirement and spend on whatever it is you need.

Despite the slight drop in house prices increases, now is still a beneficial time to unlock some of the money you have tied-up in your property, especially considering that there is an estimated £767billion in housing equity in England and Wales homes.