Equity Release!

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abbiesmum2003
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by abbiesmum2003 » Wed Jan 17, 2018 10:20 pm
Well can you believe it!
The time has come that we have to look in to equity release!
Cant believe it. But. This is a nee part of this process and I will have to dig out our original T&C's.
You older members will remember we set up IV a with Mel but got changed to Creditfix.
We did not sign their revised T&C's so should remain on our original ones which clearly state 'Remortgage'. No mention of secure loan.

We have been told we have been referred to a team called Select Partnership. Has anyone any experience of this company? Reviews are mixed and lots of forums mention 'pressure' and 'significantly increased payments'.

Bit worried as we had been doing ok.

I understand we have to try and release equity. And there will be equity im sure. I understand its the whole 85% LTV amd £5,000 each malarky (although I did when we first discussed it!!!!!)

I have always believed we wouldnt get passed for a remortgage but if theres a company hired to sort it and who will
no foubt be paid bonus for customers etcI feel we will be pressured into a decision amd wont have a leg to stand on.

If they find a mortgage for us wha figures will it use? What sort of value do you remortgage using?? Are we commited to having to accept a remortgage deal or can we choose to pay an additional 12 months instead? I have always though we wouldnt get a mortgage due to credit rating and it will be the payments but as theres a specific chosen company involved I fear they will find one but it wont be in our best interests.

Can any give any advice so Im prepared for when the letters and phone calls start amd knkw where I stand.

Thank you
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Foggy
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by Foggy » Thu Jan 18, 2018 8:13 am
Select have, in the past, deemed it not in the debtors interests to proceed, where that is the case. They will look at the figures and, possibly, offer a secured loan -- which you are not obliged to accept -- if one is available. A remortgage is unlikley, though not impossible --- they used to be freely available (which is why they were written in) and might be again as things change. But, a remortgage and a secured loan are not the same thing -- as Mel went to great lengths to prove.
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Ryan
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by Ryan » Thu Jan 18, 2018 10:27 am
Please don't feel pressurised into doing something that may not be in your best interests. If your existing Mortgage is with a High Street Lender then re-mortgaging now to a specialist Lender who may lend would lead to you paying a higher interest rate on your whole mortgage. In that scenario it may be best to do the extension then when you Complete there are High Street Lenders who will consider lending to you.

Others have mentioned taking secured loans to end the IVA 'early' but many haven't seen the benefit of doing so as the IVA will still appear on your credit reports for the full 6 years.

All the best with however you decide to proceed.

Regards
Jeffrey33
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by Jeffrey33 » Tue Jan 01, 2019 5:39 pm
In case you don’t know anything about Equity release then this is the right place from where you can get sufficient knowledge what it exactly is. Equity release isn't something that you can take for granted, so before you look forward to it, don’t forget to estimate in case downsizing your property could be a right thing to do. In case you can pay off and move on to a smaller house, and live off the additional money you have saved then it is great. Bear in mind that if it is a house where you've lived since ages and you have many friends in the community, don't undervalue the private and public influence of moving away in case you can only afford to downsize out of the area. Don’t forget that the economic costs can be high along with agent fees, removal costs and stamp duty to factor in when it comes to equity release and buying so you'll still need money to invest this option in the start. Apart from that in case you’re thinking of taking out an equity release item then you should take economic advice from an independent financial adviser. All advisers endorsing equity release schemes must have a specialist qualification. So if they find equity release best choice for you, then they’ll be capable to recommend the plan that is more compatible according to your requirements by examining all the products in the market. You may follow https://www.yeshomebuyers.com/ where you able to find out more relevant content of equity release.
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kallis3
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by kallis3 » Tue Jan 01, 2019 6:35 pm
Speak to an equity release specialist - Select just do a secured loan in lieu of equity.
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Foggy
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by Foggy » Tue Jan 01, 2019 8:21 pm
Jeffrey33 wrote:
In case you don’t know anything about Equity release then this is the right place from where you can get sufficient knowledge what it exactly is. Equity release isn't something that you can take for granted, so before you look forward to it, don’t forget to estimate in case downsizing your property could be a right thing to do. In case you can pay off and move on to a smaller house, and live off the additional money you have saved then it is great. Bear in mind that if it is a house where you've lived since ages and you have many friends in the community, don't undervalue the private and public influence of moving away in case you can only afford to downsize out of the area. Don’t forget that the economic costs can be high along with agent fees, removal costs and stamp duty to factor in when it comes to equity release and buying so you'll still need money to invest this option in the start. Apart from that in case you’re thinking of taking out an equity release item then you should take economic advice from an independent financial adviser. All advisers endorsing equity release schemes must have a specialist qualification. So if they find equity release best choice for you, then they’ll be capable to recommend the plan that is more compatible according to your requirements by examining all the products in the market. You may follow https://www.yeshomebuyers.com/ where you able to find out more relevant content of equity release.


This is not Equity Release in the terms you are referring to Jeffrey, being the new release of funds with a charge on the property redeemable at death or on sale with no ongoing interim repayments, but is traditional secured lending to release equity with ongoing repayments being made until the loan is repaid.
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