Issue no.2 April 2017
L I F E T I M E M O RTG AG E
INSIGHT 01326 567970
Retirement
Included in this issue
Great to have a reserve (drawdown) but at what price? By Jane Hanlon, Club Manager, The Premier Equity Release Club
Page 4
Helping to grow the future of equity release
The final cog in the wheel -equity release legals
By Paul Carter, CEO, Pure Retirement
By Peter Barton, Partner & Head of Equity Release, Ashfords
Page 6
Page 14
Please note any information in this magazine is for registered intermediaries and NOT to be issued to members of the public.
Welcome To our April 2017 edition Are you ready? As mature homeowners have an increased appetite for mortgages in later life, could it be today’s low rates, low fees or the carefree attitude to spend? Financial Planners are using the low rates to advise and make recommendations to clients, for reasons outside the normal use of borrowing as a tax planning tool, so generating a new untapped stream of business. Together with the UK population living longer, house wealth is soaring, and continued growth in this market is guaranteed. Advisers should equip themselves to help and support this age group of clients in providing funds for a life changing experience for them in their silver years. This newsletter is designed to share knowledge across all sectors of the industry, keeping all informed of the current market. Our special thanks goes to the team at Pure Retirement, who create the newsletter from all the individual articles from providers and present what I hope you will see as an informative and valuable newsletter on lifetime mortgages. Enjoy the read
Jane Hanlon, Club Manager, The Premier Equity Release Club
01326 567970
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LIFETIME MORTGAGE INSIGHT
Contents
4 Great to have a reserve (drawdown) but at what price? 6 Helping to grow the future of equity release 8 Looking ahead to the next 25 years of equity release 10 Equity release property value tracker 11 Choosing equity release products 12 Equity release, using a home reversion 13 Showing how the retirement mortgage can work for your clients 14 The final cog in the wheel -equity release legals 19 Contact details and extra services
LIFETIME MORTGAGE INSIGHT Issue no.2 April 2017
Great to have a reserve (drawdown) but at what price? By Jane Hanlon, Club Manager, The Premier Equity Release Club
Let’s face it, statistics say that about 60% of Equity release taken is through reserve products, why is this? As an industry following the Equity Release Council guidelines, the borrower should only take what they need today and anything else should be put on reserve until required. The bottom line is you don’t want to draw money out to sit in a bank account to earn 0.5% if lucky, only to be charged 4-6% on the loan, costing the estate a minimum of 3.5%. Today we have typical lifetime mortgage fixed rates from 4.06% through to 6.78%. Now the rates in the 4% bracket look great, but in most cases the lower the rate, the lower the total facility, meaning the reserve will be less. In many cases, the bottom line rate is selected, which on the surface could be considered best for the client as the roll up interest would be less. But is it? Selecting the right amount of reserve based on clients’ needs against the rate is very important. If the rate is affected i.e. higher to have a higher reserve, then the reserve needs to be justified, to take into account the extra cost of the initial amount of funds. Let’s take an example: Customer borrowing £30,000 wants a reserve. Based on age 65 with £200,000 valuation. Option 1 £30,000 @ 4.11% after 10 years £44,664.19 with £13,000 reserve Option 2 £30,000 @ 4.55% after 10 years £46,812.48 with £23,000 reserve Meaning extra interest charged on the £30,000 over 10 years for a higher reserve on option 2 is £2,148.29 (If this were £300,000 then the difference would be £21,482.87)
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The cheapest rate looks best however, would the reserve be used too quickly and further funds required at a later date? There is always the option to apply for a further advance subject to age and valuation. Funds may be available but if not, the case would have to be a re-mortgage at a cost including solicitors’ fees and redemption penalties based on gilts of up to 25% (£7,500). So the customer may have saved £2,148.29 initially, but it may cost more if further funds are required over the £13,000. Then you ask yourself, who would want to pay over 6%, a simple answer for those who require a large reserve for the future, which many use for long term care funding / lifestyle, so that there are adequate funds to draw on over time. Many advisers show the reserve as a number of years‘ worth so
the client can understand the term it would cover, important as it is not an income based product so this is the nearest we can get for Equity Release. The interest rate paid is based on the facility and the larger the reserve then the more expensive the rate, as the higher the risk to the lender. Trying to recommend the right amount for a reserve is difficult and it is only through having longer discussions and understanding your clients’ needs that you will be able to recommend the most appropriate product. Understanding your clients’ needs both today and for tomorrow is crucial…… Remember that when drawing on any of the reserve, the rate charged will be based on the prevailing rate at the time it is taken, which can be higher or lower than the initial loan.
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Pure Roadshows 2017 Helping to Grow your Equity Release Business
Marketing Support for your business Pure Retirement
Sales, Communication & Influencing Skills Marc Hogan, Professional Motivational Speaker
The Adviser Journey Q&A
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Paul Saroya, Viva Retirement
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Equity Release: A Changing Market Tom Moloney, Age Partnership
Power of Attorney Richard Espley, Goldsmith Williams
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Our Roadshows are free of charge, with lunch provided, on a first come, first served basis All attendees will receive CPD Certification Contact marketing@pureretirement.co.uk to secure your place
LIFETIME MORTGAGE INSIGHT Issue no.2 April 2017
Helping to grow the future of Equity Release By Paul Carter, CEO, Pure Retirement
With 2.15bn of lending last year, the annual growth rate for equity release has doubled since 2015. Ever-more popular, the number of plans exceeded 8,000 in the final quarter of 2016, with pensioners withdrawing an average of £5.8 million per day from their homes. With this increasing popularity, it’s vital that we, as a market, ensure there is the resource in place to meet future customer needs, with advice accessible to all for effective retirement planning. Recent reports on the financial position of the over 55s have highlighted the importance of equity release as a fundamental part of planning for later life. Research from the FCA estimates that a quarter of this year’s new pensioners will retire with an average of over £24,000 of debt*, the highest estimated figure since 2012, largely due to interest-only mortgages and credit card debts. Such is the concern that the treasury has recently agreed to permit £1,500 early withdrawal from pensions, to be used specifically for retirement advice** The market is searching for ways to bring more financial advisers on board, allowing customers the access to this broader and much-needed advice, ensuring that equity release is an option. There has been much discussion of the introduction of a stand-alone qualification for equity release, which would allow a fast-track route for advisers to join the market, without the longer traditional route of first acquiring mortgage qualifications. While this would widen the availability of advice to customers interested in equity release, it’s important to consider that the quality of advice is as important as its availability, and a lack of background understanding of mortgages and the wider financial options available to customers may well dilute the quality of the advice which they receive. Perhaps a better focus is to engage advisers already qualified in mortgage advice, or interested in becoming so, ensuring the breadth of understanding is
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there for the future customers who will be trusting in their guidance. At Pure Retirement we are dedicated to such adviser engagement, helping to grow the market in ways which will improve rather than dilute the advice available to customers. Our Pure Roadshow will take place in June this year in London, aimed at advisers new to the market or considering entry, to demonstrate the benefits and support which is available to help them grow their business in equity release. Likewise, the Adviser Guide to Equity Release from the Equity Release Council was created and sponsored by Pure Retirement last year, with guidance on traditional qualification routes alongside step-by-step support on the end-to-end advice process. The guide is accessible to all through the council’s website, and a toolkit of invaluable additional resources is available to those who become members of the council, committed to facilitating the highest standards of advice. Helping to grow the market is part of Pure’s overall missive this year, as well as helping to grow the retirement funds of our customers with our fee free product options, and helping to grow the
businesses of our registered advisers. Launched last year, our marketing toolkit was specifically designed for advisers without the resource or capacity to promote their services, making it easier for customers to find the advice they are looking for. Now part of the council’s Adviser Guide Toolkit, it offers bespoke support in the creation and production of marketing materials for existing and prospective customers, as well as potential introducers. From direct mail templates, to shop front posters and banners for use at events, we hope to deliver a range of advertising solutions to suit a variety of needs. Our goal is to provide advisers with a holistic service, offering support for the day-to-day of their business activities; from our award-winning broker support service, answering any queries they may have, and 24 hour access to our online broker portal, to helping with the nitty gritty of their business needs of which marketing forms an integral part. It’s important that as well as encouraging advisers to join the market, we provide and maintain high standards of ongoing support. This is the only way to sustain and grow the adviser network, meeting the ever-increasing customer demand for solutions that best meet their needs. *The Guardian Feb 2017 **Money Marketing Feb 2017
Parliamentary briefing event Launch of ERC commissioned white paper exploring the future role of housing wealth as retirement income WHEN 2-4pm Weds 26th April WHERE Committee Room 10, House of Commons, London SW1A 0AA
WHO Hosted by Julian Knight MP; speakers include Nigel Waterson, Chairman of the Equity Release Council and Dr Louise Overton, Teaching Fellow in Social Policy at the University of Birmingham.
A BIT MORE ABOUT THE PAPER Considers the outlook for equity release in the post-pension freedoms landscape, and explores the implications of emerging changes in product innovation and retirement income planning. Highlights the progress made in recent years in developing equity release products which meet the needs of older consumers, as well as the key challenges facing the Government where equity release can be a part of the solution. For registration information please email equityreleasecouncil@whitehouseconsulting.co.uk
LIFETIME MORTGAGE INSIGHT Issue no.2 April 2017
Looking ahead to the next 25 years of equity release By Nigel Waterson, Chairman, The Equity Release Council
2016 saw the equity release sector reach a new landmark, with annual lending exceeding £2 billion for the first time. Not only that, but the sector’s growth rate doubled from 16% in 2015 to 34% last year and membership increased to over 500 individuals and organisations from across the industry. These recent achievements were attained through product innovation and greater flexibility to meet customer demand, continued consumer and adviser education about the role and benefits of equity release and greater recognition of the importance of equity release from regulators, such as the Financial Conduct Authority, and government. Product innovation Product innovation is playing an increasing role in the growth of the equity release sector. Features such as customers being able to ring-fence a percentage of their equity to leave as an inheritance, and the ability to make interest and/or capital repayments on a loan before reverting to roll-up at a time of the customer’s choosing, have provided the kind of product flexibility that consumers crave. Drawdown products continue to account for two thirds of the market, allowing customers to take money only as and when they need it and reducing interest costs in the long-term. Further, over half of all new plans agreed now allow customers to make voluntary repayments up to a certain value – typically 10% per year – without facing an early repayment charge. Lenders are offering an increasingly diverse range of products, helping to boost consumer demand and in turn promote competition across the sector. Customers are now benefitting from not only a wider choice of products, but also from more competitive rates, with the average equity release interest rate falling to a record low of 5.66% in September 2016.* As people live longer and the pressures faced by the social care system persist, with too few people saving for this separately, the equity release sector has the potential to facilitate some of this need such as home care, giving people the opportunity to remain in their homes for longer, and to make the necessary home
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adaptations. Subsequently, the equity release market will continue to develop new ideas and solutions to meet this and other future challenges. Encouraging more advisers to the market With a growing market and rising demand, the industry needs to ensure consumers have the best possible access to advice. Currently, there are around 9,000 advisers who have acquired an equity release qualification yet not all of them practice, so the capacity to serve a larger market is already there but we need to make sure it is utilised effectively. As part of our commitment to encouraging more advisers into the market, we provide simple, useful information via our Adviser Guide to equity release as well as a range of tools and templates for our members. Not only that, where possible we help with access to 3rd party training programmes. Consumer education The potential benefits of equity release are being increasingly understood by consumers, yet many homeowners remain unaware of the opportunities it presents. The UK population is ageing, retirement is lasting longer and savings have to stretch further. Savings often fall short, whilst at the same time, those in later life have benefited from increased housing wealth**, meaning there is a huge source of untapped wealth to meet this shortfall in retirement saving. It is clear equity release has a role to play and working to drive greater understanding about its benefits will remain a priority. Regulatory and policy change Equity release is being increasingly regarded as one of the tools to provide financial solutions to consumers and is increasingly supported in the policymaking and regulatory spheres. Last year, in recognition of the differences between mainstream and lifetime mortgages, the Financial Conduct Authority changed the affordability rules for customers who voluntarily opt to pay interest initially on their loan where they have the choice to revert to a compound arrangement. In addition, the government’s Pensions Advice Allowance will enable consumers to receive retirement advice on a range of options, now including property wealth as an asset.
Looking forward Having celebrated the Equity Release Council’s 25th anniversary in 2016 with high sector growth, an increasingly diverse product range and greater recognition of the potential benefits of equity release, it is vital that we build on that momentum. We will continue to strive for greater competition and innovation to meet future challenges and opportunities, while ensuring that robust industry standards remain at the heart of everything we do. * https://moneyfacts.co.uk/news/retirement/equity -release-customers-never-been-better-served/ **Key Retirement: pensioner property wealth exceeds £1 trillion
For further information, please contact: Jordan Campbell, Victoria Heslop or Will Muir at Instinctif Partners, on 020 7457 2020 or email TWC.TheEquityReleaseCouncil@ instinctif.com
About the Equity Release Council – www.equityreleasecouncil.com The Equity Release Council is the industry body for the equity release sector, which represents over 500 members including providers, qualified financial advisers, solicitors, surveyors and other industry professionals. It works to ensure a safe equity release market for consumers, by operating rigorous standards for the provision of advice and products which guarantee security of tenure and financial protections. 2016 marked the 25th anniversary since the first industry Standards were created for equity release in 1991. Since then, nearly 370,000 people have taken out an equity release plan from a Council member, drawing on nearly £18bn of housing wealth. The Council also works with consumers, industry and policy makers to improve awareness and understanding of equity release and the potential for housing wealth to help solve many of the financial challenges facing people over the age of 55 across the UK.
LIFETIME MORTGAGES • OneFamily • Lifetime Payment Calculator • Mortgage Interest Our new Interest Payment Lifetime Mortgage allows your clients to pay back up to 100% of the interest each month, ensuring their loan amount does not increase with interest. To help you demonstrate our new product to your clients, we have launched an Interest Payment Calculator. See how it works below!
The calculator will find your clients’ maximum loan based on their application type (joint or single), age and house price. In the first scenario: The client pays 100% of the interest each month for the term of the loan. This means their loan amount will remain at £180,000 for the life of the loan.
In the second scenario: The client pays 100% of the interest each month for ten years. After this, they decide to stop their payments and let the interest rollup. The interest is then added to the loan amount each year.
The graph illustrates how 100% interest payments ensure the loan amount does not exceed £180,000.
The graph illustrates how the interest rolls up after year ten and £255,384 is left at the end of the term (year 20).
With our Interest Payment Lifetime Mortgage your clients have the flexibility to set their monthly interest payment amount from day one of the loan, depending on their needs. During the loan term, they are able to stop making payments at any time and switch to our Voluntary or Roll-up Lifetime Mortgages, should their circumstances change. For more information please visit our website, to find our new calculator and sales support tools.
This is not a consumer advertisement. It is intended for professional advisers only.
Equity release property value tracker United Kingdom
Key
£205,937 -1.9%
House price
£39,128
Quarterly change Maximum loan amount for a 55 year old*
Scotland £142,895
Total potential Equity Release value**
-0.27% £27,150 £21,851,009,611
North £124,284
North West
0.17%
£151,463
£23,613
-0.34%
£9,505,738,845
£28,777
Yorkshire & The Humber
£29,912,321,552
£149,124
West Midlands
-1.13%
£173,777
£28,333
-0.67%
£21,978,571,783
£33,017
East Midlands
£27,168,713,620
£169,341 0.12%
Wales
£32,174 £22,242,865,981
£146,049 -0.08%
East Anglia
£27,749
£218,544
£13,601,191,337
2.19%
South West
£41,523 £37,420,341,977
£228,611 -0.57% £43,436 £38,659,435,008
South East £268,656 0.56% £51,044
Greater London £473,073 -0.35% £89,883 £76,082,408,696
£66,648,639,479
Total potentially available to 55+ year olds via Equity Release
£365,071,237,888
*using Retirement Advantage Equity Release product loan to values **based on population aged 55 or over who own a property Source: ONS data
retirementadvantage.com
Retirement Advantage is a trading name of Stonehaven UK Ltd. Authorised and regulated by the Financial Conduct Authority. Registered in England and
30-037 02/17
LIFETIME MORTGAGE INSIGHT Issue no.2 April 2017
Choosing equity release products The Equity Release sector has seen some strong product innovations in recent years, building on a market which for some time has offered a number of products with attractive features. This means there are a number of elements that need to be considered in addition to the overall cost (rate and fees), and how much borrowing is allowed.
• Completely free – go to http://exweb.exchange.uk.com/content /public/login/er_application.asp to sign up if you don’t have an Exchange Account and give it a try
• Supported service – our helpdesk is there to answer your questions • Plans to improve – more enhancements on the way
A quick walk through of the IRESS Service: Input screens are clear and straightforward.
IRESS service provides quotations based on up to date rates, LTVs and rules, and in addition to this there is further information on all products in order to assist with making an informed choice. Here are some reasons to use IRESS for Equity release quotations: • Speed and Simplicity – two simple input pages: Client Details and Policy Details – create quotes in minutes • Product Features – support for common product features, based on initial sum, drawdown and reserve facility required
The results show the amount that can be borrowed (either maximum or requested amount) and the AER and MER. There are additional filters at the top of the screen to further refine the choices.
• Coverage – offers all Equity Release providers (based on ERC membership) including two home reversion providers • Dynamic Product List – see which products are available based on your input criteria • Additional Filters – on the results screen quickly filter on products allowing free repayments and choose either fixed or variable rate products • Product details – drill down into individual products for notes and further information • Links and literature – access further provider services and literature • Interest Rate Table – for lifetime mortgage see the value of the loan compared with different house price growth • Comparison print – a permanent record of results, to keep on file containing details of data input and results • Market leading – a widely used and popular service
You can then drill down into individual products for more information, plus detailed notes and links to provider sites and literature. The annual table shows the effect of interest rate growth compared with an entered level of house price growth. The comparison print provides a permanent record of the quotation produced. Quotes are saved for 30 days. As the market leader IRESS produces over 25,000 comparisons per month, so you can have confidence in an established service. We are also working with providers to extend the services we provide, to give you more information at the sourcing stage, and bring more efficiency to your business. Watch this space for our future plans!
LIFETIME MORTGAGE INSIGHT Issue no.2 April 2017
Equity release, using a home reversion By Mark King, Managing Director, Crown Equity Release
Background When I started in this industry in the late 1980s the only option for a homeowner looking to release some capital from his home was via a sale on a reversionary basis. There had been some scandals about unsafe products which had been mis-sold to the public; thus in 1990 I was one of the founders of SHIP – Safe Home Income Plans and Crown reversion continues to be a member of the equity release council. Roll-up or life time mortgages were still some way away.
What is a reversion? A reversion means that all or part of the property is sold in exchange for a lifetime rent free lease and a capital sum. A conveyance is conducted and the change of ownership and the lifetime lease are both registered at the Land Registry. The lease also allows the co-owner or tenant to move to an alternative property at any stage. There are no early redemption fees involved although the reversioner has to pay estate agency fees etc. as if it was their own property. The amount of capital raised takes into account that no rent is passing and that it may be many, many years before the investor is able to realise his asset. The size of the discount depends on the ages of the vendors and is available via “The Exchange”. A reversion often releases more capital than may be available via a lifetime mortgage and is currently being used by several vendors who are in the throes of a divorce as it may enable one spouse to remain in their home and produce enough capital to satisfy any court order concerning payments to the other party.
Who is the buyer? At Crown Equity Release we only handle cases introduced by FCA regulated advisers, we are regulated as “arrangers” which means that we place the reversionary interests with external investors. We do not act as principals in the transaction so each case is
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purchased by an investor who will consider each case on its own merits. This means that we are often able to place such interests on properties that are not acceptable to mortgagors. Such properties may be:
Disadvantage of a Reversion The disadvantage is that should the life tenants die early then they have not had good value from the arrangement.
• Ex-local authority
Obtaining an illustration
• Leasehold flats
To obtain a KFI for your client either telephone Mark King on 020 8875 5665 or email mking@crownequityrelease.com with details of the property (including ex- local authority, leasehold/freehold, type of construction, estimated values, ages of the clients and any charges you may make.)
• Non-standard construction Furthermore impaired lives may qualify – subject to medical history – to an increased pay out.
Advantages of a Reversion Thus the advantages of a reversion are: • Flexibility, if part of the property is sold another part may be sold to realise more capital at a later time. • Freedom to move at a later date without any early redemption fees. • Option to take capital as a single lump sum or a series of payments for up to 180 months or a combination of both. • If a partial reversion is taken the property is sold and the proceeds disbursed in ratio to the level of ownership. This may not occur with a roll up mortgage as the interest payable could eat up all the capital stored in the property leaving the beneficiaries with nothing.
At Crown we try and keep your clients’ fees to a minimum and if possible will not charge a valuation fee. We do not charge an arrangement fee as the investor pays our fees. Further details may be found on our web site: crownequityrelease.com
LIFETIME MORTGAGE INSIGHT Issue no.2 April 2017
Showing how the retirement mortgage can work for your clients It is an interest only lifetime mortgage for customers age 55-85 Hodge Lifetime Retirement Mortgage case study – The Phillips Mr & Mrs Phillips aged 65 & 60 were looking to purchase a new property to the value of £157,500. Based on their outstanding existing mortgage of £120,000 and the sale of their current property, a shortfall of £67,000 occurred. They also wanted to raise a further £3000 to pay off a personal loan. The Phillips requested a loan amount of £70,000 to cover both the shortfall for the property purchase and the full loan repayment, the LTV based on their purchase worked out at 44%. They chose the retirement mortgage based on the fixed 5 year ERC and the ability to make 10% overpayments from day 1 as well as the higher LTV available at age 60.
Mr Phillips was in receipt of a full state pension, Mrs Phillips a £5,500 state pension, both clients each have a defined benefit pension scheme (in payment), Mr being in receipt of £4,000 per annum and Mrs £3,000 (both index linked with a dependency/spousal benefit of 50%). The Phillips had maintained a good credit history and were able to evidence low level outgoings at around £12,500 per annum, at the time of application they also declared a credit card and an overdraft facility which they did not want to consolidate as part of this mortgage. They had adequate levels of savings in the background which they chose not to use currently, but which were factored into the affordability calculation in order to make the case work. After affordability checks were done and evidence of income and expenditure had been proven, the Retirement Mortgage completed at the loan amount requested of £70,000.
Why does this case work? An LTV of 44% at age 60 (youngest borrower) was available as based on affordability; a maximum LTV of 50% is available for customers age 55-70.
The Phillips pensions and pension benefits allowed enough income (along with having savings available and a clean credit history) to pass affordability checks for a loan of £70,000.
The 50% spouses benefit meant the loan remained affordable in the event of their spouse’s demise. To see how the Retirement Mortgage could work for your client, visit Hodge Lifetime’s affordability calculator www.hodgelifetime.co.uk/affordability
LIFETIME MORTGAGE INSIGHT Issue no.2 April 2017
The final cog in the wheel -Equity release legals By Peter Barton, Partner & Head of Equity Release, Ashfords
As advisers you invest many hours in an equity release client, indeed signing a client to an app, from your initial meeting with them, may take months or even years. Your work however is not over when the door is closed behind you clutching the app in hand.
a no completion no fee basis. The clients only have a simple 2 page Questionnaire to complete and return. Once the offer is in, we will either then arrange an appointment for the client to visit one of our many offices or arrange a local Solicitor appointment for them at a small additional charge (£90). Home visits can be arranged at an additional charge.
It is often the case that only then does the real work begin, especially if your client has chosen their own Solicitor to deal with the legal side, and they are unfamiliar with equity release. It is that very moment that you submit the app that potentially the case falls out of your control and guidance.
At all times we will keep you updated by e-mail and our online portal for case tracking.
On a daily basis I hear grumbles about solicitors dealing with equity release who at best are unfamiliar with equity release and cause delays and upset the clients, at worst they positively dissuade clients from proceeding. It is for this very reason that you need to be confident when seeing clients that you have in your "armoury" the contact details of knowledgeable and experienced solicitors in the equity release market. So when a client utters the words "I will use my local Solicitor that I have used for decades" you are ready to question their ability in this very specialised area.
We always aim to complete within 21 days of receipt of the offer, subject to clients being happy to proceed. Never underestimate the role of the Solicitor, we may be the final cog in the equity release wheel, but get the wrong cog and the case will either stall or fail. If you have any questions or would like to pick my brains please do call on 07921 233934 or e-mail p.barton@ashfords.co.uk
How do we operate? We can be instructed by you using the form that Jane can let you have which requires very simple details. If you are able to let us have certified ID (passports) and insurance that would save us troubling the clients.
£
We will then make contact with the clients by telephone and in writing setting out our requirements and our fees (£450 + VAT + Disbursements of circa £40) on
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££
£ £
£
LIFETIME MORTGAGE INSIGHT Issue no.2 April 2017
Product changes from 1st January 2017 Lender
Product
Flexi Lump
Lowest Rate
Highest Rate
Current Rate
Please note that each case is individually assessed.
Retirement
3.79%
3.79%
3.79%
Flexi Life
5.44%
5.44%
5.44%
Lump
5.34%
5.34%
5.34%
Lifetime >55
5.00%
5.30%
5.00%
Lifetime Plus
5.30%
5.30%
5.30%
Lifetime Max
5.80%
5.80%
5.80%
Indexed >55
3.00%
3.00%
3.00%
Indexed Plus
3.40%
3.40%
3.40%
Roll Up
5.29%
5.29%
5.29%
Lump Sum
5.75%
5.99%
5.75%
Flexi
4.14%
4.38%
4.14%
Flexi C/B
4.34%
4.58%
4.34%
Flexi Plus
4.65%
4.84%
4.65%
Flexi Plus CB 2%
4.85%
5.04%
4.85%
Lump
5.35%
5.54%
5.35%
Lump CB 2%
5.55%
5.74%
5.55%
Lump Plus
5.79%
6.24%
5.79%
Lump Sum C/B
5.99%
6.44%
5.99%
Premier Range
3.99%
4.23%
3.99%
Flex
6.04%
6.04%
6.04%
Lump Sum
4.15%-5.20%
4.55%-5.20%
4.15%-5.20%
Tailored Enhanced
6.37%
6.37%
6.37%
Capital Choice
4.96%
5.00%
4.96%
Please always check lenders rates and commissions as this can change without notice.
LIFETIME MORTGAGE INSIGHT Issue no.2 April 2017 Lender
Retirement
Product
Lowest Rate
Highest Rate
Current Rate
Lump Lite CPI
3.56%
3.56%
3.56%
Lump Lite Fixed
5.30%
5.30%
5.30%
Lump Standard CPI
3.76%
3.76%
3.76%
Lump Standard Fixed
5.50%
5.50%
5.50%
Voluntary Lite CPI
4.06%
4.06%
4.06%
Voluntary Lite Fixed
5.80%
5.80%
5.80%
Voluntary Standard CPI
4.27%
4.27%
4.27%
Voluntary Standard Fixed
6.00%
6.00%
6.00%
New Interest Lite CPI
3.56%
3.56%
3.56%
New Interest Lite Fixed
5.30%
5.30%
5.30%
New Interest Standard CPI
3.76%
3.76%
3.76%
New Interest Standard Fixed
5.50%
5.50%
5.50%
Drawdown 1
6.29%-6.84%
6.39%-6.99%
6.29%-6.84%
Drawdown 2
6.04%-6.59%
6.14%-6.74%
6.04%-6.59%
Drawdown 3
6.44%-6.99%
6.54%-7.14%
6.44%-6.99%
Interest Gold
5.49%
5.99%
5.49%
Interest Platinum
5.99%
5.99%
5.99%
Lump Gold
5.99%
5.99%
5.99%
Voluntary Gold
5.69%
5.69%
5.69%
Voluntary Platinum
5.89%
5.89%
5.89%
New Lifestyle Gold
4.38%
4.38%
4.38%
New Lifestyle Platinum
6.58%
6.58%
6.58%
Please always check lenders rates and commissions as this can change without notice.
18
LIFETIME MORTGAGE INSIGHT Issue no.2 April 2017
Contact details and extra services Lenders
Solicitors
Sourcing
Aviva www.aviva-for-advisers.co.uk 0800 015 4909
Ashfords 01392 334060 £450 + VAT + disbursements for club members.
Iress- free www.thepremierequityrelease club.co.uk Registration on home page left scroll down.
Bridgewater 08451 4050600
BBH www.bbhlegal.co.uk 0800 051 4218 £695 incl VAT for club members.
Crown 0208 875 5665 Mark King
Gilroy Steel www.gilroysteel.co.uk 01604 620890 £495 + VAT for club members.
Hodge Lifetime www.hodgelifetime.co.uk 0800 731 4076
Benefit software.
Freeben www.freeben.co.uk 30 day free trail and £40.50 per annum with 10% discount per annum for club members.
Just Retirement www.justadviser.com 0845 302 2287 Legal & General www.landghomefinance.com 03330 048 444
NEW LPA /WILL Service
LV= www.lvadviser.com 0800 028 8974
Ashfords 01823 232339 £1100 single will and 2 LPA and £1600 joint mirror 2 x Will and 4 LPA, includes court costs and VAT. Adviser marketing £75 single & £90 joint for club members.
More2life www.more2life.co.uk 03454 500 151
Website for IFA made to measure from £145 for 12 months. From Freeben, call Jane 01326 567970
Onefamily www.onefamilyadviser.com 0800 802 1645
PI COVER
Pure Retirement www.pureretirement.co.uk 0113 3660 599
The PI Desk Market leading with 18 years experience in FS. Call Jane 01326 567970
Retirement Advantage www.retirementadvantage.com 0800 068 0212
WEB Services
Equity Release Council www.equityreleasecouncil.com 0844 669 7085
01326 567970
Retirement
Please note any information in this magazine is for registered intermediaries and NOT to be issued to members of the public.