Trust in Equity Release December Newsletter

 

 

Equity Release – Your Questions answered

 

What is Equity Release?

 

It is simply a way of releasing funds from the value of your property without potentially having to pay for it until either you die, go into long term care or sell the property.

 

How can it help retired people?

 

Some people in retirement today are cash poor and yet own their own property outright. Equity Release could generate funds from their property to repay other loans or debts, carry out home improvements, help out children or grandchildren today or just to raise some funds to help enjoy retirement that bit more financially comfortable

 

How do you qualify for Equity Release?

 

You must be over 55 years old and a property owner. The property should have a minimum value of £75000.

 

Does your property qualify?

 

Some properties are not suitable for Equity Release. These include mobile homes, park homes, houseboats and agricultural properties. Whilst it is sometimes difficult to arrange we can arrange Equity Release on holiday homes and buy to let properties in this country.

 

How much can you borrow?

 

The amounts available differ greatly from provider to provider depending on the person’s age and the value of their property. We believe it is vital to get an Independent specialist to advise you how much and at the most suitable terms.

 

What types of plan are available?

 

There are two types of Equity release available. A Home Reversion Plan allows you to sell all or part of your home in return for a Tax Free lump sum. There are guarantees in place to allow people to live in their homes for the rest of their lives. The other option is the Lifetime Mortgage which allows you to borrow against the value of your property without potentially having to make repayments during your lifetime.

 

 

 

Is it possible to make repayments with Equity Release?

 

Yes some lender will allow interest to be repaid and one lender allows capital and interest to be repaid. They are also flexible in that the customer can determine how much interest want to pay if they do not want t pay it all

 

What other options are available?

 

Equity Release is not right for every body and it is important to seriously consider other options which could be:

  • Using conventional  borrowing and making repayments
  • Selling the property and downsizing
  • Encashing a current investment or existing asset
  • Applying to the local authority for a grant
  • Raising funds through family

 

Why is it so important to get specialist advice?

 

Age UK strongly recommends people see independent legal and financial advice. Some plans in the market place have their own advantages and disadvantages so it is really important to get the most appropriate plan to suit the customer needs.

 

Why Trust in Equity Release?

 

We aim to provide that specialist independent advice and as a well established business we will make sure the customer gets the right answers from a fully qualified Equity Release specialist. The customer is centric to everything we do and caring for the customer is our absolute priority.

 

Think carefully before securing other debts against your home. To understand the features and risks of an Equity Release Scheme. Ask for a personalised illustration

 

There may be a fee for the Equity Release Advice. The precise amount will depend on your circumstances but we estimate it will be £795.

 

Equity Release schemes can be helpful in certain circumstances, but are not suitable for every one. For example, they can be expensive and inflexible if your circumstances change and may affect your entitlement to state or local authority benefits.

 

 

For further information contact Steve Harrison on 01704 233210 or 07714 414545 or visit our website on www.trustinequityrelease.co.uk.

 

 

 

 

 

 

 

 

Equity Release – Your Questions answered

 

What is Equity Release?

 

It is simply a way of releasing funds from the value of your property without potentially having to pay for it until either you die, go into long term care or sell the property.

 

How can it help retired people?

 

Some people in retirement today are cash poor and yet own their own property outright. Equity Release could generate funds from their property to repay other loans or debts, carry out home improvements, help out children or grandchildren today or just to raise some funds to help enjoy retirement that bit more financially comfortable

 

How do you qualify for Equity Release?

 

You must be over 55 years old and a property owner. The property should have a minimum value of £75000.

 

Does your property qualify?

 

Some properties are not suitable for Equity Release. These include mobile homes, park homes, houseboats and agricultural properties. Whilst it is sometimes difficult to arrange we can arrange Equity Release on holiday homes and buy to let properties in this country.

 

How much can you borrow?

 

The amounts available differ greatly from provider to provider depending on the person’s age and the value of their property. We believe it is vital to get an Independent specialist to advise you how much and at the most suitable terms.

 

What types of plan are available?

 

There are two types of Equity release available. A Home Reversion Plan allows you to sell all or part of your home in return for a Tax Free lump sum. There are guarantees in place to allow people to live in their homes for the rest of their lives. The other option is the Lifetime Mortgage which allows you to borrow against the value of your property without potentially having to make repayments during your lifetime.

 

 

 

Is it possible to make repayments with Equity Release?

 

Yes some lender will allow interest to be repaid and one lender allows capital and interest to be repaid. They are also flexible in that the customer can determine how much interest want to pay if they do not want t pay it all

 

What other options are available?

 

Equity Release is not right for every body and it is important to seriously consider other options which could be:

  • Using conventional  borrowing and making repayments
  • Selling the property and downsizing
  • Encashing a current investment or existing asset
  • Applying to the local authority for a grant
  • Raising funds through family

 

Why is it so important to get specialist advice?

 

Age UK strongly recommends people see independent legal and financial advice. Some plans in the market place have their own advantages and disadvantages so it is really important to get the most appropriate plan to suit the customer needs.

 

Why Trust in Equity Release?

 

We aim to provide that specialist independent advice and as a well established business we will make sure the customer gets the right answers from a fully qualified Equity Release specialist. The customer is centric to everything we do and caring for the customer is our absolute priority.

 

Think carefully before securing other debts against your home. To understand the features and risks of an Equity Release Scheme. Ask for a personalised illustration

 

There may be a fee for the Equity Release Advice. The precise amount will depend on your circumstances but we estimate it will be £795.

 

Equity Release schemes can be helpful in certain circumstances, but are not suitable for every one. For example, they can be expensive and inflexible if your circumstances change and may affect your entitlement to state or local authority benefits.

 

 

For further information contact Steve Harrison on 01704 233210 or 07714 414545 or visit our website on www.trustinequityrelease.co.uk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Release – Your Questions answered

 

What is Equity Release?

 

It is simply a way of releasing funds from the value of your property without potentially having to pay for it until either you die, go into long term care or sell the property.

 

How can it help retired people?

 

Some people in retirement today are cash poor and yet own their own property outright. Equity Release could generate funds from their property to repay other loans or debts, carry out home improvements, help out children or grandchildren today or just to raise some funds to help enjoy retirement that bit more financially comfortable

 

How do you qualify for Equity Release?

 

You must be over 55 years old and a property owner. The property should have a minimum value of £75000.

 

Does your property qualify?

 

Some properties are not suitable for Equity Release. These include mobile homes, park homes, houseboats and agricultural properties. Whilst it is sometimes difficult to arrange we can arrange Equity Release on holiday homes and buy to let properties in this country.

 

How much can you borrow?

 

The amounts available differ greatly from provider to provider depending on the person’s age and the value of their property. We believe it is vital to get an Independent specialist to advise you how much and at the most suitable terms.

 

What types of plan are available?

 

There are two types of Equity release available. A Home Reversion Plan allows you to sell all or part of your home in return for a Tax Free lump sum. There are guarantees in place to allow people to live in their homes for the rest of their lives. The other option is the Lifetime Mortgage which allows you to borrow against the value of your property without potentially having to make repayments during your lifetime.

 

 

 

Is it possible to make repayments with Equity Release?

 

Yes some lender will allow interest to be repaid and one lender allows capital and interest to be repaid. They are also flexible in that the customer can determine how much interest want to pay if they do not want t pay it all

 

What other options are available?

 

Equity Release is not right for every body and it is important to seriously consider other options which could be:

  • Using conventional  borrowing and making repayments
  • Selling the property and downsizing
  • Encashing a current investment or existing asset
  • Applying to the local authority for a grant
  • Raising funds through family

 

Why is it so important to get specialist advice?

 

Age UK strongly recommends people see independent legal and financial advice. Some plans in the market place have their own advantages and disadvantages so it is really important to get the most appropriate plan to suit the customer needs.

 

Why Trust in Equity Release?

 

We aim to provide that specialist independent advice and as a well established business we will make sure the customer gets the right answers from a fully qualified Equity Release specialist. The customer is centric to everything we do and caring for the customer is our absolute priority.

 

Think carefully before securing other debts against your home. To understand the features and risks of an Equity Release Scheme. Ask for a personalised illustration

 

There may be a fee for the Equity Release Advice. The precise amount will depend on your circumstances but we estimate it will be £795.

 

Equity Release schemes can be helpful in certain circumstances, but are not suitable for every one. For example, they can be expensive and inflexible if your circumstances change and may affect your entitlement to state or local authority benefits.

 

 

For further information contact Steve Harrison on 01704 233210 or 07714 414545 or visit our website on www.trustinequityrelease.co.uk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust in Equity Release November Newsletter

The information contained in this newsletter is for Professional Connections only and should not be distributed to the general public.

 

 

Dear Colleague

 

Equity Release sales hit five year quarterly high

 

Equity Release plans agreed in the third quarter of this year reached a total value of £284.1m making it the largest single quarter in sales terms since the equivalent period in 2008, according to figures from the Equity Release Council. The total represents a 14% rise from the same quarter last year and 15% increase from the previous quarter in 2013. The average amount released in the quarter was £57107 and the most telling statistic is that 97% of plans were sold through Independent Financial Advisers. Why is this important????

 

  • There are a restricted number of lenders in the market place who are vying for business and offering special terms

 

  • These lenders are beginning to introduce new features to their plans such as capital and interest payments, better and clearer Early Repayment charges, and more flexible drawdown options

 

  • It therefore is absolutely vital to know the market place so that the customer ends up with the right product.

 

  • Most importantly, a qualified adviser must also advise his client when Equity Release is not the answer and potentially point them in a different direction.

 

This is where I can help you and your clients. If you have older clients who have need of some capital or wish to give their children some funds now then pick up the phone as I would be very happy to discuss different options with you. I have full access to the Equity Release market place and specialize only in Equity Release complementing rather than threatening what you already do. I also have a website with useful information in which is www.trustinequityrelease.co.uk. My contact numbers are detailed below.

 

Kind Regards

 

Steve Harrison CeMAP, CeRER

Equity Release Consultant

 

 

Trust in Equity Release

23 Emmanuel Road

Southport

PR9 9RP

 

Tel: 01704 233210

Mob: 07714 414545

 

www.trustinequityrelease.co.uk

Email: steve@trustinequityrelease.co.uk

 

Equity Advice Limited Liabilty Partnership trading as Trust in Equity Release is Authorised and Regulated by the Financial Conduct Authority.

 

Equity Advice Limited Liability Partnership, Registered Office: 95 Northgate Street, Gloucester, Gloucestershire, GL1 2AA.

 

The information contained in this newsletter is for professional connections only and should not be distributed to the general public. If you have received this message in error or there are any problems please notify the originator immediately. The unauthorised use, disclosure,copying or alteration of this message is strictly forbidden. Internet communications are not secure and therefore Trust in Equity Release does not accept legal responsiblity for the contents of this message.

 

 

Trust In Equity Release August Newsletter

 

Dear Colleague

 

Divorce Rescue – Keeping the family home

 

According to the latest ONS figures (published in

December 2012) the number of divorces in England

and Wales in 2011 was 117,558 with the highest rate

amongst men and women aged 40 to 44.

Based on marriage, divorce and mortality statistics for 2010, it is

estimated that the percentage of marriages ending in divorce is

currently 42%

 

For many of these couples the only major asset to be shared is the family home. For

the younger divorcees many could still have a fairly large mortgage on the property.

They will probably still be working so remortgaging to buy one partner out or selling

and borrowing against a new property are standard solutions.

 

However those in the younger age group may not be able to go down the traditional

mortgage solution route for the following reasons:

  • They may not have sufficient income for the new mortgage
  • They may not be able to raise funds to buy out the other partner
  • They may not be working, especially if still bringing up young children.

In these circumstances, with the help of parents, equity release could provide an

alternative option by releasing funds to help buy out the other partner.

 

Equity Release schemes may work out to be more expensive than alternatives such as

downsizing to a smaller property and could possibly limit a customer’s options for

moving home at a later date. Interest repayment options are available as interest

rolling up can erode the remaining equity in the property.

 

Instances of divorce amongst the elderly is also on the increase and again by using

Equity Release it may be possible to buy out the other partner by releasing funds to

buy out their share.

 

Two examples where Equity Release can help to possibly avoid having to sell the

marital home to fund divorce settlement. Please feel free to contact me if you have

specific cases where the sale of the family home is to hopefully be avoided.

 

Equity Release includes home reversion plans and lifetime mortgages. To

understand the features and risks, ask for a personalised illustration.

For equity release we can be paid by commission, or a fee of usually £895 or a

combination of both.

Your home may be repossessed if you do not keep up repayments on your

mortgage.

For mortgages, we do not usually charge for administering your mortgage

application as we receive a commission from the lender. Alternatively, you can

opt to pay 0.40% of the value of the loan and receive a refund of commission

from the lender on completion.

 

IF YOU THINK I CAN HELP RING ME ON 01704 512120 OR 07714 414545

 

Steve Harrison CeMAP, CeRER

Equity Release Consultant


 

 

 

 

Trust in Equity Release July Newsletter

 

 

Dear Colleague

 

Please see below three reasons why

you should not close your minds to

Equity Release

Market News

 

‘I like my home and want to remain in it’: Banks close

door on pensioner mortgages

 

More than 1.6 million retired people still have a mortgage. But their biggest problem often

isn’t meeting the monthly repayment — it’s finding a bank or building society that will lend

to them.

Most lenders impose a strict age limit for mortgages of your retirement date or, at most,

75. This can trap pensioners with their existing lender, preventing them from searching

out the cheapest deals available to younger borrowers.

Source: Tony Hazell – Mail Online, 22 May 2013

 

One in seven to retire without a pension

 

One in seven workers planning to retire this year will be solely reliant on the state for their

income. These pensioners will have to survive on just £170 a week – compared with an

average weekly income of £322 should they have saved into a private pension.

When questioned, workers overestimated the amount of annual income the state pension

would provide them by more than £600 a year. The lack of retirement saving is so bad

that one in five workers retiring this year will below the poverty line – meaning they will

have an annual income of less than £8,254.

Source: Emma Wall – The Telegraph, 22 May 2013

 

Equity release confidence rises 23% in a year – ERSA

 

A poll from the Equity Release Solicitors’ Alliance (ERSA) found the percentage of those

considering equity release has increased from 54% to 77% over the past year.

Equally, the percentage of consumers with a negative view of equity release has fallen

from 42% to 23% over the same period.

Source: Fiona Murphy IFA Online, 15 May 2013

 

Equity Release includes home reversion plans and lifetime mortgages. To

understand the features and risks, ask for a personalised illustration.

For equity release we can be paid by commission, or a fee of usually £895 or a

combination of both.

Your home may be repossessed if you do not keep up repayments on your

mortgage.

For mortgages, we do not usually charge for administering your mortgage

application as we receive a commission from the lender. Alternatively, you can

opt to pay 0.40% of the value of the loan and receive a refund of commission

from the lender on completion.

 

IF YOU THINK I CAN HELP RING ME ON 01704 512120 OR 07714 414545

 

Steve Harrison CeMAP, CeRER

Equity Release Consultant

 


 

Trust in Equity Release May Newsletter

The Bank of Parents and Grandparents.

Nigel Waterson, Chairman of the Equity Release Council recently posted the following comment on the Council’s website:

There is substantial wealth tied up in the family home and through the use of equity release, this can be unlocked and used to tackle financial pressures across the generations

The whole demographic of inheriting legacy has changed over recent generations largely caused by improved lifestyles and greatly improved medical advances. In previous generations there existed the old adage of reaching the age of “three score years and ten represented a long and happy life” In today’s terms getting into your seventies represents just another phase of retirement.

In those circumstances children into their late forties and early fifties tended to inherit from their late parents at a time when they probably most needed it. Their own children may have needed funds for house purchase or to fund education or to pay for weddings. Whilst this is a generalisation it nevertheless represented what generally happened.

To give you an idea a male age seventy has an average life expectancy of 18 years and a female aged 70 has an average life expectancy of 25 years. This combined by healthier lifestyles and medical advances means that not only are people living longer but also equally important they are much more active for much longer.

The needs of children and grandchildren have not however changed and many still need that financial support to help then as they set out to define their own lives in their 20’s and 30’s. This is where equity release can help and make a difference as it does provide a way to still provide this support using the equity either in parents or grandparents property.

You may have clients who find themselves needing funds to support family for whatever reason and Releasing some value from the equity of parents or grandparents property could we’ll be a feasible solution. It may not be the solution for all but until we have the conversation I cannot help find the best solution to meet that need.

IF YOU THINK I CAN HELP RING ME ON 01704 512120 OR 07714 414545

Equity Release includes home reversion plans and lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

For equity release we can be paid by commission, or a fee of usually £895 or a combination of both.

Steve Harrison CeMAP, CeRER

Equity Release Consultant

 

Trust In Equity Release April Newsletter

 

 

Dear Colleague

 

Just Retirement recently quotedInterest Only Mortgages” may be a ticking time bomb but are you ready for the equity release explosion?

 

40% of interest only mortgages (equivalent to 60,000) will not be repaid every year until 2020. Of these, how many will find that they cannot extend their mortgage term with their current provider, or be able to fund the cost of increased monthly payments should their provider insist on them switching to a repayment mortgage?

 

Do any of your clients fall into the category above?

 

During the course of last year I was able to help a number of clients who had been approached by their existing lender to advise that the term of the mortgage was coming to an end. The lenders are then asking how the mortgage is going to be repaid. Many customers are either faced with a shortfall or indeed have no repayment vehicle at all.

 

Imagine your clients being faced with having to repay their mortgage and possibly the only solution is to sell their home and downsize! The time may not be right, they may be very happy in their current home; it is likely they were expecting the lender to just extend the loan!

 

Certainly, the customers I have met in these circumstances became very concerned at being landed with a ticking time bomb on the countdown to the mortgage ending.

 

The lenders are working with customers to get a result however in many cases the only practical solution for them has been in their own mind to move.

 

THERE IS HOWEVER POTENTIALLY ANOTHER SOLUTION

 

Inevitably the vast majority of people affected will be moving towards retirement if not already retired. Equity Release can provide a solution to allow the customer to stay in their current home. A Lifetime mortgage may be the answer to their problems as the loan is only repaid on death or moving into long term care (repaid on second death or care for couples).

 

Some lenders will even consider an interest only Lifetime Mortgage which would return the customers back to the Status Quo and take away the need to downsize putting the decision back in the hands of the customer as to when they might wish to downsize. There is even a lender who will allow repayments of capital and interest. I am also able to potentially arrange a conventional mortgage to aged 80 as a further alternative.

 

Inevitably, Equity Release will not be right for everybody particularly where the loan to value is high and of course if the customers are happy to downsize that will remove the debt forever. This solution will only appropriate for a small number of people who meet the age criteria and clients must of course obtain personalised advice. A cash lump sum or income from an equity release scheme may reduce the borrower’s eligibility to state benefits. An equity release scheme will reduce the value of the borrower’s estate and may leave nothing to pass on as an inheritance if no interest payments are made.

 

If you have any of your clients in this position and are concerned, I would be only too pleased to speak either with your good-self or your clients to enable them to consider all the alternatives before deciding what to do. Remember, the initial meeting is free of charge and could provide them with a real solution.

 

RING ME ON 01704 512120 OR 07714 414545 IF YOU THINK I CAN HELP

 

Equity Release includes home reversion plans and lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

 

Your home may be repossessed if you do not keep up repayments on your mortgage

 

For equity release we can be paid by commission, or a fee of usually £895 or a combination of both.

 

Steve Harrison CeMAP, CeRER

Equity Release Consultant

 

Trust in Equity Release January Newsletter

Dear Colleague

 

Happy New Year to you and I wish you every success for 2013 in what will I am sure be a challenging year ahead.

 

For many retired people the cost of living is rising year on year, far more than their income, which is impacting on their ability to enjoy their retirement to the full. Many are sitting on vast sums of Equity in their property and  they struggle on rather than doing anything about it.

 

Those who do take action may decide to downsize but many either simply love the home they have lived in for a large part of their lives or cannot downsize to generate sufficient capital. Releasing equity from their home can be a good solution for many especially as retired people are staying active much longer than the previous generations, which of course needs money to afford these activities. This is can be an issue across the board whether people live in a property valued at £100000 or £1000000 they can be cash poor and each lives to their own standards.

 

The greatest issue faced by many people is either the lack of knowledge or the miss information they have about Equity Release which immediately closes their mind to that route being a potentially good alternative for them. I know this from my own day to day experience of explaining to potential customers why Equity Release can be a solution for them and overcoming their perceptions and ignorance of how it works.

 

Of course it is not right for everybody like all types of financial products it is important to identify the needs of the client and the identifying a solution to help them. Advising a customer not to go ahead with an equity release case is just as an important part of the advice process. I am very passionate about Equity Release and am keen to promote this potential area to you as a potential introducer who may have your own clients who you feel may benefit from a discussion with me.

 

I will continue to produce this newsletter for you each month and confirm that I would like over the course of the year to meet with you to discuss the merits of Equity Release and how I could possibly help your customers in retirement that are asset rich and cash poor. If in the meantime you do have a client that I may be able to help then by all means pick up the phone and I will be only too pleased to discuss this with you.

 

Kind Regards

 

Steve

2012 has been a big year for Equity Release, roll on 2013

As we approach the end of what has been a momentous year for the Equity Release market which has seen the launch of a new governing body it is worth reflecting how the market has changed over the course of the last year. The Equity Release Council has been established to promote Equity Release as a more established solution to help people in retirement. Please find detailed below a brief synopsis of how the market has changed:

 

  • Interest Rates have steadily reduced to the point where the best rate we have seen in the market this year is 5.68% which is significantly better than the lowest rate in 2011.

 

  • There are more options for Interest Only Lifetime Mortgages which in 2013 could well be much more attractive to customers particularly with the reluctance of mainstream lenders to now offer Interest Only loans.

 

  • Traditionally with Equity Release, early repayment charges can be very penal however there are lenders now who will allow a percentage repayment each year without penalty and also after a qualifying period allow you to move and pay off with out penalty.

 

  • There are more lenders now offering higher loan to values for people wishing to maximise the amount they release.

 

  • As lenders compete for business they are offering free valuations and cash backs on completion in an attempt to win business.

 

  • More lenders are offering drawdown facilities with higher levels of reserve for the customer to take after the initial cash sum.

 

As you can clearly see the Equity Release Market is in good shape which means that the products available are much more likely to meet the needs of potential clients as we move into 2013. There are alternatives to raising funds through Equity Release such as downsizing, using savings, funds from family, state benefits or grants which I always investigate first as these options if possible usually represent the best way forward. I am finding more and more that people want to stay in their home because either of the emotional attachment or their fear of losing significant funds on a house move now. They can take Equity Release now and move later taking the plan with them.

 

With the difficult times continuing into 2013, equity release could well be a help in 2013 for many people. If you have a possible case you wish to discuss or simply would like some advice. Please contact me either on 01704-512120 or 07714-414545. Finally I would like to wish you all the very best for the forthcoming festive season and best wishes to make 2013 the best year ever.

Happy Christmas

 

Steve Harrison CeMAP, CeRER

Equity Release Consultant

Equity Release offers solution for homeowners who don’t want to downsize

For many homeowners looking to increase their retirement income, downsizing is one option to investigate. However as Andrea Rosario, Director General of the Equity Release Council (ERC) highlightsdownsizing can have an “emotional impact” on all those involved.

While moving to a smaller property may seem a sensible choice on paper, and in fsact be the best option for many, for others the idea of leaving the family home, their neighbours and all their memories is an incredible upsetting concept.

It is for these people for whom Equity Release could be a preferred option.

Allowing you to release funds from your property, an added benefit of an equity release scheme is it allows the home owner to remain in their property for the rest of their life.

Equity release activity has steadily increased in recent years, a trend which many are expecting to continue as more and more people approach retirement with money still owing on their mortgage.

Figures from a recent survey has shown that 18 per cent of people have used equity release to clear their mortgage, sas Andre Rosario explains:

“Whilst it is essentially refinancing it does mean that they will not have to make monthly repayments and therefore have a higher disposable income”

It is estimated that nearly half a million people in the UK may not have paid off their mortgage when they decide to retire. This is due tio numerouds reasons including remortgaging on a regular basis and buying a property later in life.

Steve Harrison

10/10/2012