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