Equity release.

usetobunkin

clb74 said:

usetobunkin said:

Rob7Lee said:

usetobunkin said:

clb74 said:

Covered End said:

usetobunkin said:

golfaddick said:

usetobunkin said:

My Mother-in Law, was tied into a Eq Release, when she passed with Interest was something like £60 a day, and in 4years a 85k loan which ended up 34k after paying off mortgage and fees, became 100k to settle


Its a stich up start to finish. Don't touch with a barge poll

With due respect, I disagree. And I expect I have a lot more experience dealing with Equity Release than you have. I sometimes find that the most disgruntled people are beneficiaries who feel their inheritance has been "stolen" from them. 

As long as the borrower(s) know what they are taking on (usually a rolled-up interest only loan) then it can be a good way of releasing money that is tied up in a property. As I mentioned earlier, interest can be paid by the borrower if they so wish, usually from as little as £50pm all the way up to the actual monthly payment. This can also be altered over time & ultimately ceased should the borrower not afford to / cant be arsed to spend their income repaying a debt that will only benefit their beneficiaries. 

Many people in their 80's are sitting on a big asset (their house) due to the explosion in house prices but have meagre pensions. 40 years ago pensions were mainly for those working for the state or big companies and many women did not have their own pension - even the state pension was claimed by the husband with an element for a non-working wife. 

A "Charge" is put against the property, and bully boy tactics used to get the ER paid, when a family maybe totally unaware of the ER, and grieving over the death of family member.
This is the next Mis-sold  scandal in the making

Family members should be informed by the person taking out the mortgage/equity release. It's clearly not the lenders fault they weren't advised. 

Is there no safeguarding?

No safeguarding, the "advisor"  "selling" the ER, has no legal obligation at all to talk to anybody other than the purchaser. 
The elderly confused person is sold a product, which is totally unsuitable. 
When other solutions maybe possible. 
The whole ER industry is rotten to its core, making its money of off the backs of pensioners and the old and frail.
Don't know how anybody can work in this industry, should hang their heads in shame

You've clearly had a bad experience, but doesn't make everyone in an industry bad. If it did then after my last year there's definitely no good kitchen sellers, carpenters, electricians, builders or plumbers!

On your original post you complained that a 85k loan increased to 100k in 4 years. I'm not sure what your expectation was, rate of interest, fee's etc but on straight interest it's around 5.5%.

I had no expectation, my wife was not informed by anybody of my late Mother-in-Laws decision, and my Mother-in-Law, would have been entitled to a range of state help.
The advisor, convinced my M-i-L not to tell the family, "as we may have confused things"
The co-signer to the contract was a equally frail next door neighbour. 
While all legal, not so sure about the morals.

Do you mind me asking how long a go this was bunking?

2021, Feb -June

clb74

usetobunkin said:

clb74 said:

usetobunkin said:

Rob7Lee said:

usetobunkin said:

clb74 said:

Covered End said:

usetobunkin said:

golfaddick said:

usetobunkin said:

My Mother-in Law, was tied into a Eq Release, when she passed with Interest was something like £60 a day, and in 4years a 85k loan which ended up 34k after paying off mortgage and fees, became 100k to settle


Its a stich up start to finish. Don't touch with a barge poll

With due respect, I disagree. And I expect I have a lot more experience dealing with Equity Release than you have. I sometimes find that the most disgruntled people are beneficiaries who feel their inheritance has been "stolen" from them. 

As long as the borrower(s) know what they are taking on (usually a rolled-up interest only loan) then it can be a good way of releasing money that is tied up in a property. As I mentioned earlier, interest can be paid by the borrower if they so wish, usually from as little as £50pm all the way up to the actual monthly payment. This can also be altered over time & ultimately ceased should the borrower not afford to / cant be arsed to spend their income repaying a debt that will only benefit their beneficiaries. 

Many people in their 80's are sitting on a big asset (their house) due to the explosion in house prices but have meagre pensions. 40 years ago pensions were mainly for those working for the state or big companies and many women did not have their own pension - even the state pension was claimed by the husband with an element for a non-working wife. 

A "Charge" is put against the property, and bully boy tactics used to get the ER paid, when a family maybe totally unaware of the ER, and grieving over the death of family member.
This is the next Mis-sold  scandal in the making

Family members should be informed by the person taking out the mortgage/equity release. It's clearly not the lenders fault they weren't advised. 

Is there no safeguarding?

No safeguarding, the "advisor"  "selling" the ER, has no legal obligation at all to talk to anybody other than the purchaser. 
The elderly confused person is sold a product, which is totally unsuitable. 
When other solutions maybe possible. 
The whole ER industry is rotten to its core, making its money of off the backs of pensioners and the old and frail.
Don't know how anybody can work in this industry, should hang their heads in shame

You've clearly had a bad experience, but doesn't make everyone in an industry bad. If it did then after my last year there's definitely no good kitchen sellers, carpenters, electricians, builders or plumbers!

On your original post you complained that a 85k loan increased to 100k in 4 years. I'm not sure what your expectation was, rate of interest, fee's etc but on straight interest it's around 5.5%.

I had no expectation, my wife was not informed by anybody of my late Mother-in-Laws decision, and my Mother-in-Law, would have been entitled to a range of state help.
The advisor, convinced my M-i-L not to tell the family, "as we may have confused things"
The co-signer to the contract was a equally frail next door neighbour. 
While all legal, not so sure about the morals.

Do you mind me asking how long a go this was bunking?

2021, Feb -June

Cheers

golfaddick

usetobunkin said:

Rob7Lee said:

usetobunkin said:

clb74 said:

Covered End said:

usetobunkin said:

golfaddick said:

usetobunkin said:

My Mother-in Law, was tied into a Eq Release, when she passed with Interest was something like £60 a day, and in 4years a 85k loan which ended up 34k after paying off mortgage and fees, became 100k to settle


Its a stich up start to finish. Don't touch with a barge poll

With due respect, I disagree. And I expect I have a lot more experience dealing with Equity Release than you have. I sometimes find that the most disgruntled people are beneficiaries who feel their inheritance has been "stolen" from them. 

As long as the borrower(s) know what they are taking on (usually a rolled-up interest only loan) then it can be a good way of releasing money that is tied up in a property. As I mentioned earlier, interest can be paid by the borrower if they so wish, usually from as little as £50pm all the way up to the actual monthly payment. This can also be altered over time & ultimately ceased should the borrower not afford to / cant be arsed to spend their income repaying a debt that will only benefit their beneficiaries. 

Many people in their 80's are sitting on a big asset (their house) due to the explosion in house prices but have meagre pensions. 40 years ago pensions were mainly for those working for the state or big companies and many women did not have their own pension - even the state pension was claimed by the husband with an element for a non-working wife. 

A "Charge" is put against the property, and bully boy tactics used to get the ER paid, when a family maybe totally unaware of the ER, and grieving over the death of family member.
This is the next Mis-sold  scandal in the making

Family members should be informed by the person taking out the mortgage/equity release. It's clearly not the lenders fault they weren't advised. 

Is there no safeguarding?

No safeguarding, the "advisor"  "selling" the ER, has no legal obligation at all to talk to anybody other than the purchaser. 
The elderly confused person is sold a product, which is totally unsuitable. 
When other solutions maybe possible. 
The whole ER industry is rotten to its core, making its money of off the backs of pensioners and the old and frail.
Don't know how anybody can work in this industry, should hang their heads in shame

You've clearly had a bad experience, but doesn't make everyone in an industry bad. If it did then after my last year there's definitely no good kitchen sellers, carpenters, electricians, builders or plumbers!

On your original post you complained that a 85k loan increased to 100k in 4 years. I'm not sure what your expectation was, rate of interest, fee's etc but on straight interest it's around 5.5%.

I had no expectation, my wife was not informed by anybody of my late Mother-in-Laws decision, and my Mother-in-Law, would have been entitled to a range of state help.
The advisor, convinced my M-i-L not to tell the family, "as we may have confused things"
The co-signer to the contract was a equally frail next door neighbour. 
While all legal, not so sure about the morals.

Seeing as you were  unaware that your MIL had taken out an ER plan, how do you know what the adviser said ?  As I say, there are safeguards to protect vulnerable clients & Equity Release applications are checked by our Compliance team before they are submitted to a lender. Cant answer for other advisory firms though. And like @Rob7lee says, there are always 1 bad apple in whatever trade you deal with. 

Anyway, I've had my say. I think I'll withdraw from this thread as I will probably only fan the flames but saying any more. 

golfaddick

IdleHans said:

A friend's parents used equity release to finance an extension to their house some time back in the 90s. 
At the time the loan was taken out the base rate was 4% and the interest rate charged was fixed at 7% or thereabouts. A 3% margin didn't seem to me to be exorbitant.
After the old fella died the family became concerned about the way the debt was compounding, and felt they were being ripped off. I worked through the numbers for them as a sanity check. Because, unlike a mortgage, nothing is being paid against either the principal or the interest, the rate of increase in the debt is frightening. There was nothing wrong with the calculation of the debt, even though they found it hard to believe. As you might expect, the lender wanted a big early repayment penalty to let them out and refinance elsewhere at a much lower rate, so much so that it was a marginal decision. Thinking they had little to lose the family went to the financial ombudsman who found mostly in their favour, and happily they were able to get out at a much lower cost. The lender was that well known firm of disreputable loan sharks, Aviva.

Ah, the 90's. Things might have just moved on a tad since then. Even @usetobunkin has to pay for his match ticket these days 

Wheresmeticket

Get the money then burn your house down in a spectacular Viking-style funeral pyre when you are ready to go.