Equity Release Centre News

Elderly people pay up to £7,000 a year for home care services

Sat, 31 Dec 2011 10:26:14 GMT

Elderly people pay up to £7,000 a year for home care services

Elderly people are paying up to £7,000 a year for home care services from their local authority after a sharp rise in fees.

Many councils have introduced "stealth" increases for services such as daily care, meals on wheels and transport to day centres. The average price of a meal rose from £3.17 last year to £3.44.

The figures were disclosed in a survey which found that almost half of councils are charging more this year than in 2010-11 for home care services, with average prices rising from £13.05 an hour to £13.40. Fees also vary significantly around the country in a "postcode lottery system" in which some councils, such as Surrey, charge more than £21 an hour for home care.

Source: Daily Telegraph 31/12/11

Commenting on the situation Keith Hargraves, The Equity Release Centre Principal and Long Term Care specialist, says:-

“This is not surprising faced with increasing numbers of people needing care and Local Authority funding constraints. Whilst you should always check you are getting all the help you can from the state before considering equity release, should you want to continue receiving care at home and either want or need more care than you qualify for from your Local Authority, equity release, especially a drawdown lifetime mortgage which sets up a maximum facility and just continue to draw money from it as required can help provide much needed funding, although specialist care fees and equity release advice should be received before proceeding. That’s where we are ideally placed to help as unlike most other equity release specialists we are also specialists in Long Term Care funding. If you would like more advice on this important subject call us.”

To find out more about drawdown lifetime mortgages, click through to drawdown lifetime mortgages.

To find out quickly just how much of a facility you could create to help meet ongoing fees , use our free equity release calculator.

If you do need care and would like to find out more about the rules surrounding care funding you can also visit our website dedicated just to long term care www.adviceoncare.co.uk

House prices rise in 2011

Sat, 31 Dec 2011 10:22:43 GMT

House prices rise in 2011

Compared to end of last year house prices ended up 1% higher and 9 out of 13 regional areas showed increases according to Nationwide Building Society latest House Price Index.

LV= Improves Equity Release Interest Rates

Fri, 30 Dec 2011 10:29:06 GMT

LV= Improves Equity Release Interest Rates

From 3rd of January 2012 LV is reducing their interest rates on both their lump sum lifetime mortgage and flexible lifetime drawdown equity release plans.

Rates will start from as low as 6.49% for their lump sum equity release scheme and 6.69% for their drawdown scheme.

Stonehaven increases maximum loan size and property values

Mon, 05 Dec 2011 10:31:32 GMT

Stonehaven increases maximum loan size and property values

From 05/12/2011 for properties in Greater London and South East only Stonehaven have increased their maximum loan size they will consider to £750,000 and will now consider properties in the area up to £4 million.

Properties in other areas the maximum loan size is still £500,000 and maximum property value - £1 million.

Aviva scraps valuation fees on new applications for sub £1m properties

Mon, 05 Dec 2011 10:30:25 GMT

Aviva scraps valuation fees on new applications on properties worth less than £1 million

From 05/12/2011 Aviva has announced that they will no longer charge for valuations on new applications on properties valued up to £1million.

SHIP Equity Release Figures Show Leap in Lending

Tue, 18 Oct 2011 10:32:39 GMT

SHIP Equity Release Figures Show Leap in Lending

Total Advances and Customers Increase:

Latest press release from SHIP the Safe Home Income Plan trade body shows that SHIP approved equity release lenders lent new advances of £206.2m in Q3 2011, up 12% on the previous quarter (£184.9m), and the highest level of lending seen since Q1 2010 (£213.4m). The number of equity release customers also grew by over 10% from 3,710 (Q2) to 4,148 (Q3).

SHIP's release goes onto say ..”This growth is excellent news for the equity release industry, and shows that consumers are becoming increasingly aware of the benefits of accessing the money tied up in their home, to help them have a more comfortable retirement.”

Aviva increases the percentages they are willing to lend on properties

Mon, 10 Oct 2011 10:33:12 GMT

Aviva increases the percentages they are willing to lend on properties

As of Monday 17the October 2011 Aviva has increased the percentages they are willing to lend.

Over a third of retirees see home as pension

Wed, 28 Sep 2011 10:34:42 GMT

Over a third of retirees see home as pension

LV=today says that a third of over -50’s look set to use the equity in their home to help supplement their retirement income in the future, up from 1.5million people in 2010.

Keith Hargraves Principal of The Equity Release Centre says, if you would like to see just how much equity you could release why not use our free equity release calculator

LV= Improves Equity Release Interest Rates

Wed, 10 Aug 2011 10:42:44 GMT

LV= Improves Equity Release Interest Rates

From today LV is reducing their interest rates on both their lump sum lifetime mortgage and flexible lifetime drawdown equity release plans.

Rates will start from as low as 6.69% for their lump sum equity release scheme and 6.89% for their drawdown scheme.

Partnership Assurance launches a fees-free enhanced equity release scheme for impaired lives.

Wed, 10 Aug 2011 10:40:51 GMT

Partnership Assurance launches a fees-free enhanced equity release scheme for impaired lives.

Partnership is the longest established UK insurer specialising in the design of financial products for people whose health and lifestyle means that their life expectancy is likely to be reduced. Now they have launched an enhanced Lifetime Mortgage Equity Release scheme to help people in poor health obtain more form their home.

Keith Hargraves Principal of The Equity Release Centre commenting on Partnership Enhanced Lifetime Mortgage says:

There are two features of the Enhanced Lifetime Mortgage which together currently sets it apart from all other lifetime equity release mortgages available:-

Potentially increased amounts available to borrow
No arrangement, valuation or completion fees.

In addition for those who want the security of leaving a specified percentage of their property’s value to their family and who do not need the very maximum sum available themselves, they also offer an Inheritance Protection feature. Whilst this feature is not unique, see http://www.equity-release-centre.co.uk/376--protected-lifetime-mortgage.htm, taken together with no fees and the potential for increased loan amounts means makes this product worthy of consideration for anyone suffering from impaired health.

Find out more about whether you could qualify for an impaired health equity release scheme, or give us a ring on Freephone 0800 970 4883.

Aviva introduces impaired rates

Wed, 03 Aug 2011 05:28:43 GMT

Aviva introduces impaired rates

From today Aviva have entered the impaired life equity release market potentially offering even higher loan to values for people who have or suffer from any of the following:-

Smoked more than 10 a day for the last 10 years
High Blood Pressure requiring more than 1 type of daily medication
Diabetes controlled by tablets or insulin
Angina, heart attack, coronary artery bypass surgery or angioplasty
Had a stroke other than a mini stroke/TIA
Multiple Sclerosis requiring use of walking sticks or similar aid
Diagnosed with Cancer, leukaemia , Hodgkinsons Disease, lymphoma or other malignant growth or tumour in last 5 years which required chemotherapy or radiotherapy.
Diagnosed with Parkinsons Disease which needs you to use walking sticks or similar aid.
Taken early ill health retirement for any reasons other than any of the above or muscoloskelatal disorder e.g. osteoarthritis, rheumatoid arthritis, joint pain or mental health such as anxiety or depression.

If you (or both of you in joint applications) suffer from any of these you may be entitled to borrow more. To find out more complete our online enquiry form or feel free to call us on Freephone 0800 970 4883

Further information about how you could benefit from impaired rate lifetime mortgages.

Aviva increase maximum loan to values on their maximum lump sum equity release scheme.

Wed, 03 Aug 2011 05:24:25 GMT

Aviva increase maximum loan to values on their maximum lump sum equity release scheme.

From today Aviva is increasing the amount they will be prepared to lend on their Lifestyle Lump Sum Maximum lifetime mortgage, and now offers Loan to Values from 19.5% at just 55 up to 51% for anyone aged 85 or older.

Keith Hargraves Principal of The Equity Release Centre says this is very welcome at a time when more people are enquiring about releasing equity to pay off mortgages or other financial commitments which perhaps hitherto they haven’t quite been able to release enough to do.

To check how much you could potentially release, why not use our FREE & IMMEDIATE lifetime mortgage equity release calculator.

Just Retirement equity release schemes now 6.59%

Fri, 08 Jul 2011 11:16:28 GMT

07-07-2011

Just Retirement equity release schemes now only 6.59%

We are pleased to report that until further notice we can now offer Just Retirement equity release schemes for just 6.59%, fixed for the term of the plan.

House prices continue to drift down - a case for Interest only mortgages?

Wed, 08 Jun 2011 08:18:07 GMT

07-06-2011

House prices continue to drift downwards - A case for interest only mortgages?

According to May's Halifax House Price Index house prices in the last three months to May fell by 1.2% compared to the previous three months and compared to same quarter last year they fell by 4.2% year on year.

Commenting on this The Equity Release Centre's Principal - Keith Hargraves said today - "With house prices continuing to drift downwards it's not surprising that people are more concerned about the interest on a roll up lifetime equity release mortgage building up, and thats why we offer Interest Only mortgages for the retired, as for people who can afford just a relatively modest amount each month, it can allow people to still release money but stop the debt from building up".

Could Interest Only Mortgages be right for you?

Providing you own a home, are aged 55+ (both in cases of joint applications) and have little or no mortgage on your home you may be eligible.

To find out immediately just how much you could potentially borrow up to, please use our free online calculator.

To find out more about how interest only mortgages work, their relative advantages and disadvantages visit interest only mortgages.

However, no one should enter into any form of equity release without first getting professional, impartial advice. If you would like to request a free no obligation home consulation with an experienced adviser so that you can throughly discuss your circumstances, please call us on FREEPHONE 0800 970 4880 or complete our enquiry form and we will call you back just as soon as possible.

Gas bills to rise by 19% and Electricity 10%

Wed, 08 Jun 2011 12:53:27 GMT

07-06-2011

Gas bills to rise by 19% and Electricity 10%

As reported in the Guardian Online today, Scottish Power is to raise the price of domestic gas and electricity bills by 19% and respectively from August 2011.

The rise which will affect 2.4 million households and add an additional £175 per year to the average dual fuel customers bill.

According to Audrey Gallagher head of Energy at Consumer Focus "This huge increase will be a body blow for consumers and we fear other firms will follow Scottish Power's lead".

Keith Hargarves Principal of The Equity Release Centre reflecting on these comments adds ... "This will only make matters worse for pensioners who's will find it even more difficult to make ends meet and possibly have to make hard choices between keeping warm and eating in the comming winter".

Could equity release help?

If you are finding life a struggle and could do with some additional money to help you meet such increases, and are over 55, own your own home and have little or no mortgage remaining on it, then it could be? You can find out how much you could release today by simply putting your details into our online calculator.

However, we would like to emphasize that equity release is not right for everyone and would innevitably mean you leave less money for beneficiaries to inherit. It could even affect any entitlement to means tested benefits. We would, therefore, not recommend it unless you have fully considered all alternatives and discussed the relative advantages and disadvantages with a professional equity release adviser. If you would like to request a free home consultation to discuss it with a specialist equity release adviser, why not call us today on FREEPHONE 0800 970 4883 or by completing our online enquiry form.

Only 51% of people are making sufficient pension provision.

Tue, 07 Jun 2011 11:59:39 GMT

07-06-2011

Only 51% of people are making sufficient pension provision.

According to Scottish Widows seventh annual pensions report, only 51% of adults aged between 30 and state pension age who earn more than £10,000 p.a. are making sufficient provision for their retirement.

A fifth are failing to make any provsion at all for their retirement.

Commenting on this report The Equity Release Centre's Principal - Keith Hargraves said " With rising costs of living and the squeeze on incomes and job insecurity perhaps this is not to be unexpected. However, if people continue to save inadequately for retirement, with increases in State Retirement Ages perhaps more people will have put off retirement or look to unlocking some of the value in their home to help support them in retirement. This is where equity release may be able to help".

Could you benefit from Equity Release?

If you (or both of you in joint cases), are over 55, own your own home and have little or no mortgage remaining on it and would like to look at how your home could help, simply put your details into our online calculator and see just how much money you could potentially release.

However we would like to emphasize that equity release is not right for everyone and would innevitably leave less money for beneficiaries to inherit and could even affect any entitlement to means tested benefits. We would, therefore, not recommend it unless you have considered all alternatives and fully discussed the relative advantages and disadvantages with a professional equity release adviser. If you would like to discuss the idea of equity release with a specialist today, why not call us on FREEPHONE 0800 970 4883 or request a free home consultation by completing our online enquiry form.

Equity release lender Stonehaven returns

Sun, 05 Jun 2011 10:33:42 GMT

04-03-2011

Equity release provider Stonehaven has returned to the equity release market

SHIP approved equity release lender - Stonehaven has returned to the equity release market a year after suspending new lending.

The Equity Release Centre's principal - Keith Hargraves commented on the news -

"This is particularly good news at a time or subdued housing market as they offer four interest only products, which allow the borrower to decide how much interest they pay off each month and for how long. This means that instead of rolling up interest, if clients can afford to make some repayments of interest it will stop or slow the amount of interest building up meaning homeowners worried about future house prices can safely release equity knowing that that the debt will not build up. Not only this Stonehaven's schemes also allow you to change your mind at a later date and roll up the interest without having to re-mortgage".

Unlike traditional mortgage lenders the amount that can be borrowed is not dependent on income, but like other lifetime mortgages, it is based on age and property value.

Find out more

If you would like to find out more about how their interest only lifetime mortgage options could work for you, call us now on FREEPHONE 0800 970 4883.

Myths about Equity Release Dispelled

Sun, 05 Jun 2011 09:44:48 GMT

25-5-2011

Myths about Equity Release Dispelled

Industry body Safe Home Income Plans (SHIP) has revealed that limited understanding of the sector has led to myths pertaining to products like lifetime mortgages and home reversion plans becoming ingrained in the public's imagination.

The list below shows the most common myths about equity release as revealed by the research and the facts:

Myth 1: You risk losing your home (69% of UK consumers believe this)

Truth: You can remain in your property for life provided the property remains your main residence.

Myth 2: You won’t be able to leave an inheritance (67%)

Truth: When you die or move into long-term care, your home is sold and the money is used to pay off the loan. Anything leftover goes to your beneficiaries or you to pay for care.

Myth 3: You won’t be able to move home (52%)

Truth: You have the right to move your plan to another suitable property without any financial penalty.

Myth 4: Equity release is unsafe and unregulated (47%)

Truth: As regulated companies, all SHIP members must abide by a strict complaints procedure to satisfy the Financial Services Authority.

Myth 5: Your children will have to repay the loan themselves (43%)

Truth: You will never owe more than the value of your home and no debt will ever be left to the estate.

Yet despite these myths, 49 per cent of Britons think equity release should be explored ahead of retirement and 20 per cent claim they will use these products in the future.

Personal insolvencies on the rise

Fri, 07 May 2010 03:30:03 GMT

07-05-2010

Personal insolvencies on the rise

There were 35,682 individual insolvencies in England and Wales in the first quarter of 2010. This was an increase of 17.9% on the same period a year ago, show first quarter statistics published today by the Insolvency Service

INDIVIDUAL INSOLVENCIES

This was made up of 18,256 bankruptcies (which were down 10.7% on the corresponding quarter of the previous year), 11,782 Individual Voluntary Arrangements (IVAs), (which were up 20.1% on the corresponding quarter of the previous year) and 5,644 Debt Relief Orders (DROs).

Steven Law President of R3, the insolvency trade body, comments:

"Today's increase in personal insolvency is as expected as the debt hangover filters through to official insolvency statistics and unemployment increases. However, there remains something of a 'debt iceberg' with many more people in unrecorded Debt Management Plans which are not included in today's statistics. According to estimates by R3 this could amount to 500,000 people, more than double the number in formal insolvency procedures.

"Below them, under the waterline are another 574,000 who are struggling financially but have contacted their creditors informally. More worrying are another group further down comprising of 961,000 individuals who are struggling with debts but have not sought help. This group could find themselves in formal insolvency procedures unless they take swift action."

Source: Debt Introducer.com 7th May 2010

Keith Hargraves Principal of The Equity Release Centre commenting on these figures says, "These figures come as no surprise as we are witnessing an increase in the increase in the number of calls we are receiving from retired parents enquiring about releasing equity to help their children out of debt problems".

If you have children who are struggling and would like to help them but haven't the money, could equity release be a solution? Why not call us on FREEPHONE 0800 970 4883 to find out.

The Equity Release Centre, experts on equity release schemes.

"Equity release" refer to home reversions plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.

House price forecasts show continued rise

Tue, 04 May 2010 12:05:41 GMT

03-05-2010

House price forecasts show continued rise

The Centre for Economics and Business Research (cebr) said a combination of low mortgage rates and a shortage of new homes being built would push up house prices by 5.3% during the year to average £172,500.

It then expects lower price growth of 3.4% during 2011, followed by a strong rise of 9% in 2012.

Source; Daily Telegraph 03-05-2010

"On the back of the recent Nationwides Building Society's report that house prices have risen by 10.5% in the last 12 months this forecast, especially the point about lack of housing, supports the view that peoples homes are not only recovering but could be continue to increase in value. This is especially reassuring for people considering roll up lifetime mortgages" says Keith Hargraves Principal of The Equity Release Centre.

The Equity Release Centre - expert advisers on lifetime mortgages.

"Equity release" refers to home reversions plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.

House Price Inflation reaches double digits

Tue, 04 May 2010 12:49:25 GMT

29-04-2010

House price inflation reaches double digits

According to Nationwide Building Society latest house price survey released today ..

“The price of a typical UK property rose by a seasonally adjusted 1.0% month-on-month (m/m) in April, leaving house prices 10.5% higher than a year earlier".

“April’s figures show the first double-digit annual growth in UK house prices since June 2007".

"April’s figures leave UK house prices exactly 10% below the October 2007 peak".

Source: Nationwide house price index April 2010

Commenting on this Keith Hargraves -Principal of the Equity Release Centre said,

"It is pleasing to see that house prices are recovering and should help homeowners feel more comfortable".

The Equity Release Centre experts in lifetime mortgages

"Equity release" refers to home reversions plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.

Equity release offers another option for social care

Tue, 04 May 2010 12:30:56 GMT

30-4-2010

Equity release offers another option for social care

Responding to Health Secretary’s white paper on Social Care, Andrea Rozario Director General of SHIP, the equity release trade body, stated that whilst they welcomed the white paper "...equity release also offers another option for social care, and widens the range of choices available for domiciliary care. Most importantly it allows people to remain in their homes at a time when they need to feel safe and reassured, without the emotional upheaval of having to sell a home that many have lived in for years".

“Between them the country’s over-65s currently share £907* billion worth of equity in their homes, yet some of these will be unaware that equity release could be used to fund domiciliary care. The Government should consider all retirement funding options, and raise awareness of equity release within these. Whilst we welcome the white paper we urge all political parties, in the run up to the election, to consider equity release as a viable mainstream option for retirees and to raise the general public’s awareness to it.”

Source: Safe Home Income Plan press release 30-4-2010

The Equity Release Centre experts in equity release schemes

"Equity release" refers to home reversions plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.