Presentation on theme: "Presentation/Webinar Know your lenders… the right equity release."— Presentation transcript:
Presentation/Webinar Know your lenders… the right equity release
Question: How many equity release providers have you used in the last 12 months? One Two Three More than four
Equity Release Lenders in a nutshell Lump sum Draw down Interest only Enhanced Reversion
Few facts from the - office on National Statistics 2010, million people aged over 60 in the UK More pensioners than children under 16 20% of over 60+ owe money 7% or nearly 1M have outstanding mortgage debt Average house price in 1983 =£ years on 2013 £163,056*or 568% over 30 years Source: Age UK Later Life fact sheet August 2013 and *Nationwide House price index full year 2012.
Facts about lifetime mortgages Fixed rate for the life of the mortgage No term end dates Purchase or remortgage No ERC if die or go into long term care Portability (providing new contract within the lenders criteria) Income and Expenditure only required on monthly payment lifetime
In market since 1988 and over 140,000 people have released cash from their homes with them. Brand awareness Flexible pricing tool – LOWER RATES THAN research Features such as free valuations, cash backs Lump sum and reserve (£2,000 no charge) Reserve is limited to 50% of maximum available. Enhanced/medical questionnaire that can reduce initial rate or increase percentage borrowing Available from age 55 years 10% overpayment rule after 1st anniversary ERC exemption if joint to single occupancy, 3 years exemption if redeem. IHT protection if required and may be reflected in rate.
Since 1965, Julian Hodge bank offered Equity release. Innovative lender Flexi repayment option- repay up to 10% (max 2 payments min £500) per year after the first anniversary. From age 60 years Larger reserve can be available, with min £1000 and no charge Downsizing guarantee with no ERC after 5 years, if in year 1 then 5%, year 5 if is 1%.
Retirement Plan Non ERC. RETIREMENT PLAN- From age 55 years -NON ER Council ( more on separate webinar) For those with pension income 5 year Fixed rate, with option to roll onto another fixed rate at end of term Standard mortgage based on retirement income. Affordability calculator on line, DIP Facility to switch to roll up form youngest at 80 years Hybrid of the equity release and can fill the gap for those wanting to maintain payments.
Over £1.8 billion in equity release lending Lump Sum, Reserve and Enhanced From age 60 years Competitive rates Lender arrangement fee added over and above LTV’s Reserve £2000 min and no fees Enhanced- on line calculator, but cases individually assessed with higher LTV (good on respiratory health) Free valuations with no maximum property value Gilt linked ERC’s but max only 20%
Innovative lender filling the gaps. Enhanced- based on lifestyle. Higher LTV’s with online calculator Age from 65 for enhanced (age temporary increase from 55) Lump Sum and reserve- (reserve can max out based on age) Free valuations Offers on occasions cash backs. Protected- for those over 70 wishing to protect for free Lump sum and reserve – (reserve can max out based on age) Free valuations
interest choice Interest Choice Fixed for life Payment collected by DDM from £25.00 per month Payment based on affordability, NOTE if joint based on joint affordability at the time of application. Not on single lowest! Affordability …..available on line Reserve available ( but no DDM collection)
Standard alone KFI generator Choice of rates on flexible with options for free valuation and or cash backs Large reserve facility available Reserve can be taken in £1000 minimum amounts at £99 admin charge. Maximum Lump sum 70+ competitive rates Arrangement fee can be added Free protection
Enhanced lender Online lifestyle/medical questionnaire Fee free product Free protection (also lends money to more2life and pure)
Lump sum and drawdown Min £10,000 Loans over £45,000 No arrangement fee, free val to £500K (if over, pay and refunded on completion) and £600 towards legal and £500 towards broker fees. Draw down scheme for loans > £45,000 broker fee £500 (70-74) £900 (75- 79) and £1400 (80+) Fee free product High LTV’s without medical or lifestyle.
Interest Select – range of LTV’s Interest payment from £25.00 per month to full interest for minimum term 12 months. Option to switch from interest payment to roll up- rate increases by 0.2% Payments based on affordability in retirement (Note based on joint at application NOT on lowest single applicant) On line KFI production- (STATES minimum disposable income for monthly payment requested) On Line case tracking Lump sum roll up Up to 2 Further advances available with no charge Free protection available Club deal, first 3 cases to PERC completion route will pay EXTRA 0.1% commission over and above the 2.3% paid by lender.
Not forgetting Reversion 1. Maximum Plan, Early vacancy guarantee(1- 5Years), High House Price Inflation 2. Flexible Release Plan 3. Secured escalating for England and Wales Worth knowing. Birmingham south. Consider most things, except retirement flats Optimum home reversion – one release only Options home reversion Plan – allows further advances, that are not subject to underwrite and are guaranteed.
Check your knowledge 1.Which lenders offer interest payments 2.Which lender has a downsizing guarantee 3.What lenders offer protection or IHT? 4.Do all lenders offer lump sum products 5.Which lenders offer enhancements based on medical or lifestyle?
Can you identify the scope of these products? Think Clients ……. Over 55 years Think Mortgage……with no income declaration Think Mortgage …..with adverse credit Think mortgage …. Fixed rate for life Think opportunity…………………. Generous procuration fees
Please remember to down load your WRAP submission form to send with application to secure the club deals the right equity release