Baroness Hollis Calls for Government Review into Uses of Equity Release for Retirement Funding
Baroness Patricia Hollis yesterday
led calls for a formal government review into the use of equity release for
retirement funding. Speaking in London at the launch of a Discussion Paper by
SHIP, the equity release trade body in conjunction with Ernst and Young,
Baroness Hollis commented: "It is rare for the public and private interests to
coincide as they do with equity release. Equity release meets a truly urgent
social need in the most decent way possible- government ministers should be
singing its praises, and making it a core part of retirement funding planning."
The Discussion Paper, entitled 'Facing the Future, Redefining
Equity Release to meet today's social and economic challenges' saw leading
industry figures gather to debate the role that housing equity could play in
retirement funding.
Andrea Rozario, Director General of
SHIP, commented on Baroness Hollis' speech: "It is fantastic to see the support
that equity release is garnering amongst senior political figures. We welcome
Baroness Hollis' calls for the government to seriously consider the use of
housing equity as a major source for retirement funding in the UK."
"The recent Social Care Green Paper failed to recognise the £700
billion in unmortgaged housing wealth currently held by the over 65's.
Government backed equity release could significantly ease the pressure on the
state to subsidise retirement funding, whilst allowing many pensioners the
financial freedom to enjoy their retirement."
"SHIP is
looking forward to working with the Government, the FSA and other key
stakeholders to determine the future shape of the equity release industry".
Source: SHIP Press Release – 28th July 2009
17/07/2009
SHIP Q2 Results 2009 Show Equity Release Sector Continuing to Weather the Storm
Number of customers up 5% Quarter on Quarter
Drawdown sales increase Drawdown sales increase by 14% Quarter on Quarter
(16th July) The members of SHIP - the UK equity release industry body - that represents approximately 90% of the equity release sector in terms of volume, today reports the official sector Q2 2009 figures (to 30 June 2009).
Source: SHIP Press Relese 17/07/2009
15/07/2009
SHIP Gives Reaction to Government's Social Care Green Paper
Andrea Rozario, Director General of SHIP, the Equity Release trade body,
comments on the publication of the Social Care Green Paper:
"SHIP welcomes the serious look which the Government is taking at the issue of
social care funding. It is a vital topic, especially at a time when the welcome
improvements in longevity are, unfortunately, coinciding with a downturn in
saving for retirement."
"In setting out possible options for funding, the paper does not specifically
consider the use of existing housing wealth to assist in this."
"We believe that, with people over 65
having unmortgaged housing wealth of approaching £700 billion, means can be
found to safely bring this to bear on at least part of the challenge, and hope
to be able to work with Government to achieve this."
"The government should consider all retirement funding options - including
equity release. We know the government has recently been debating the use of
equity release but we urge them to go further in assessing whether it can become
a viable mainstream option for retirees."
Source: SHIP Press Relese 15/07/2009
04/06/2009
UK House prices increase by 2.6% in May 2009
UK House prices increase by 2.6% in May according to today's Halifax House Price Index, an increase followed three successive monthly declines of between 1.8% and 2.3%.
Source: IntroducerUK 04/06/2009
07/05/2008
Equity release boost for sick
Now some firms are offering larger loans to those in poor health, such as those with cancer, diabetes, heart disease and strokes. They may allow you to raise as much as 25% more cash from your home than a traditional scheme.
Source: Daily Mail 7/05/2008
16/02/2008
Bankruptcies at record high
A record number of people in debt asked to be made bankrupt last year. A total of 53,114 individuals in England and Wales took the drastic step of going to court in a bid to sort out their finances.
Source: Daily Express 16/02/2008
29/10/2006
Average House price inflation over last 10 years now 10.6%
House prices across Britain have almost trebled since the property market recovery of the mid 1990’s.
Figures from Halifax showed that the average house price had risen 187% from £62,453 in the first quarter of 1996 to £179,425 in 2006 third quarter-an average increase of 10.6% a year.
Source: Halifax figures quoted in Saturday Telegraph 28 th October 2006 .
28/10/2006
Soaring fuel bills “put elderly in peril”
“Cold weather and high fuel bills could send death amongst the elderly soaring this winter charities said yesterday.”
Source: Saturday Telegraph 28 th October 2006
If you or your parents live in their own property, why put with this when equity release could help avoid it? - Keith Hargraves Principal The Equity Release Centre.
02/10/2006
Drawdown Lifetime mortgages now available to 55’s
New Lifetime mortgage provider Stonehaven, has become the first lender to offer a drawdown Lifetime mortgage roll up scheme to those aged 55+, providing you can arrange an initial loan of at least £20,000 with at this age, a Loan to Value of 15%. This effectively means that the minimum house price it would be available on would be £135,000, although to grant further funds being available in the future this would need to be higher. Previously all other drawdown schemes only started at 60.
Similarly they are offering fixed rate schemes from 55+ where you can borrow up to the following Loan to Values:-
Youngest Applicant Aged
%
55
20
56
21
57
22
58
23
59
24
60
25
This beats the Hodge Equity Release product, described in our news release of 06/08/06. Although Stonehaven, unlike Hodge, are not yet SHIP approved, they do still offer a no-negative equity guarantee.
This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.
Source: Keith Hargraves Principal, based on Stonehaven product literature September 2006.
07/09/2006
Equity Release cheaper than Standard Mortgages
“The equity release market has never been more competitive…”.
“..One of the most unjustified criticisms levelled at the industry is that it is prohibitively expensive” However “ If you review the products offered by the top 10 equity-release providers, the average interest rate on an annualised basis works out at 6.14% with the most competitive rate below 6%. In comparison, if you examine the standard variable rates on mortgages available from the top 10 mortgage lenders, as determined by the Council of Mortgage Lenders figures, their standard variable rates average out at 6.49%”.
This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration .
Source : Jon King Chairman of SHIP quoted in Money Marketing.co.uk 7th September 2006
06/08/2006
Fixed Rates for 55-60 year olds
Up until now the only Lifetime Mortgage deal for people aged 55-60 had a variable but capped interest rate, with the cap (maximum) being as high as 9.69% .
We are pleased to announce that we now have one Safe Home Income Plan (SHIP) approved lender willing to lend at a fixed rate for life, of currently just 6.21% (6. APR ) on properties valued £150,000 or more. The maximum percentage of homes value they are willing to lend on is currently:-
Youngest Applicant Aged
%
60
15
61
16
62
17
63
18
64
19
65
20
This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.
Source : Hodge Equity Release literature
18/07/2006
Your family may need your help to get onto the property ladder.
According to a National Housing Association report featured in the Daily Express of 18th July 2006, “House prices are due to rocket by more than 50% in 6 years, and by2012 the typical home is likely to cost almost 10 times predicted annual salaries”. The report goes on to say “First time buyers will find it impossible to get conventional 25 year term mortgages and young working couples and people on low incomes, will have little chance of fulfilling their home ownership dreams without financial support from parents.”
Property has been a good investment for you and should you need any further justification for releasing some of this accumulated equity, why not release some of it to help younger generations by giving them an additional deposit when they need it most.
If the predicted growth in house prices materialise, this will of course help reduce the net cost of having released equity in your own property.
"Equity release" includes home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.
The equityRelease Centre
8a Richfield Avenue
Reading
RG1 8EQ
The equityRelease Centre is a trading style of Advice on Money which is an appointed representative of Sesame Ltd, which is authorised and regulated by the Financial Services Authority. Sesame is entered on the FSA register (www.fsa.gov.uk/register/) under reference 150427.
The information contained in this web site is for general information only and is not financial, investment or tax advice. It is also subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. If you would like to discuss a particular issue or generally ask us how we can advise on your particular situation then please contact us.
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