4 minute read
FINANCE
INTEREST RATES ARE DUE TO RISE, SO IF YOU’RE LOOKING FOR EQUITY RELEASE NOW’S THE TIME TO GET ADVICE
As there is no evidence of income required it’s no surprise there has been a significant rise in the number of people over 55 using lifetime mortgages to release equity from their homes. So what are the hard facts? Well gone are the days where you have to worry about the mortgage growing larger than the value of your home. Lenders now have to provide protection in the form of No Negative Equity Guarantees, which basically means the mortgage cannot increase beyond the value of your property and leave you homeless. Money can be released for all manner of uses from kitchens & bathrooms to weddings & cruises. Another major improvement is, you can draw funds in stages at different times for several needs so this flexibility means your funds last longer by not taking the maximum at outset. What also surprises a lot of our clients is the fact that interest rates offered by lifetime mortgage providers are surprisingly competitive and as good as mainstream lending. You also now have the option to lock in a certain percentage of your property value using the Guaranteed Inheritance option so if you wanted to protect some of you house value for your children you can! There are lots of different providers each with varying incentives so we can compare all of these for you to ensure you get the best deal out there. Just remember this form of capital raising isn’t for everyone, which is why you might like to see some case studies to see if this could work for you. To discuss your options please call Abacus Assurance on 01656 772222.
Philip Vaughan is a Director at Abacus Assurance Financial Services Ltd and is authorised and regulated by the Financial Conduct Authority. A lifetime mortgage is secured against your home. PAUL FIELDING Dragon Financial 01656 782545 / 07768 418308
PHILIP VAUGHAN Director at Abacus Assurance Financial Services Ltd Porthcawl 01656 772222
2022 – A YEAR OF CHANGE?
So here we are already, the end of January and start of February, with Christmas seemingly just a short while ago...then another set of restrictions...then only a week or so later, it’s all change again, a sort of ‘back to the future’ scenario. With the UK trade figures suggesting a recovery back to preCOVID levels and the housing and mortgage markets already back in full swing, the future seems to be bright, as long as financial matters remain steady. That said, with inflation forecast to be around as much as 5% possibly sooner than we think, getting your spending right and putting your finances on a sound footing seem more important than ever. Mortgage rates persist at the bottom end of the price spectrum at present so getting in on a low interest remortgage rate now can help you get those finances in order, with expensive debt being exchanged for cheaper borrowing. This all takes a little effort on your part to talk to an established Adviser who has an important finger on the pulse as to what the market is currently doing and how things are likely to pan out going forward. At the time of writing this, I have just constructed a new mortgage arrange for someone whereby they are saving around £90 per month on their mortgage compared with their current deal, money which can go to something else. For those people, who are increasing in numbers, on retirement age borrowing, some of the deals we’ve recently achieved have been less than half the interest rate those people have been paying, so it really IS in your interests to pick up the phone and talk it through with us. On a slightly different note, many more people have suddenly become aware and concerned about the prospect of their incomes becoming open to change and vulnerable, as employers re-assess their budgets following COVID and the drastic effects this had had on certain types of businesses. Only a few days ago, we put together an income protection package for someone aged mid-30s whereby he now gets the cover of just over £1,000 per month if he can’t work due to illness, injury, etc and the cost was just £14 per month. Another policy we’ve just done includes a similar amount of income plus, if the client concerned is made redundant, he has cover and breathing space, all for around a pound a day, so much better than taking a chance. Call us on 01656 782545 / 07768 418308 to get a quote to satisfy your needs.
Independent Mortgage and Protection Advisers
We are the Specialists to call...
Need a new mortgage from a whole of market Adviser? Over the Age of 55 and need Later Life Lending or Equity Release? • Refused a mortgage due to Previous Credit Problems? • Trying to get on the ladder as First Time Buyers? • Life Assurance and Family Protection need reviewing? • Income protection a problem – not available from work?
Funeral planning? - pre-paid plans to suit everyone We also work with trusted, qualified financial partners in other areas of financial needs
EMAIL: camfin@btopenworld.com
APPOINTMENTS AT A TIME TO SUIT YOU, EVEN AT WEEKENDS – HOME VISITS
