Friday, 17 November 2017

OTHER OPTIONS FOR OLDER BORROWERS

The market is becoming generally more flexible in dealing with borrowers aged 60 and over.


Many lenders will automatically accept earnings from employment for up to age 70. Where the

borrowers have pension incomes or investment income, then mortgage terms up to 80, or even

age 85, are not out of the question. Give us a ring and we can make enquiries for you.


Monday, 13 November 2017

OVER 60? CHECK OUT LIFETIME MORTGAGES

Lifetime mortgage rates are normally fixed for the whole term of the mortgage which is usually until the property is sold on death or when moving into care.




So if you have one already, then there is probably nothing you need to do. However, if you have been considering taking one out, it would be wise to do so quickly. Over the last year the number of older

borrowers taking out a Lifetime Mortgage has increased by over 40%. This is a result of more older people approaching the end of an interest only mortgage arranged many years ago, and changes in Lifetime Mortgages which have made them more flexible.


A Lifetime Mortgage is effectively a self-certification mortgage as there are no affordability requirements as with a standard residential mortgage. The amount that can be borrowed depends only on age and the property value.

Even a poor credit record generally does not affect the ability to borrow. This can provide a powerful solution for older borrowers.

The borrowers have the choice of servicing the mortgage with regular or ad hoc payments or letting the interest simply roll-up. The bottom line is that there is no threat that missed payments would end up with one being kicked out of their property. Note: Lifetime Mortgages have a minimum age of 55; a husband and wife would require both to be aged 55 or older. Do give us a ring and we can quickly give you an idea of how much you would be able to borrow based on your age and property value.




Thursday, 9 November 2017

FIXING YOUR MORTGAGE

If you have a mortgage, review it. If you are already on a fixed rate for a reasonable term,


you probably do not need to take further action. However, if you are on your lender’s Standard



Variable Rate, you face an increase in your monthly costs in the event of any mortgage rate increase.

The easy solution is to talk to your lender about changing your mortgage over to a fixed rate. This

can usually be done for little or no cost, and for most people will also mean they will immediately

pay less than they were paying. For example a switch to a fixed rate can mean your paying a rate

which is 2.0% or so lower than you are paying currently. This can result in significantly lower monthly payments. Check it out.


Wednesday, 1 November 2017

CHANGES AHEAD!

The Governor of the Bank of England has been preparing us for an increase in interest rates in the near future. That and the uncertainty with the BREXIT negotiations are reasons



for reviewing one’s finances sooner rather than later. Mortgage and Lifetime Mortgage interest rates will both be influenced by any increase announced by the Bank of England and, in fact, some lenders have already started making adjustments.


Monday, 25 September 2017

Looking After Each Other

It is an unfortunate fact that eventually we are all likely to reach a point where we will need help either physically or in looking after our other affairs. If you have not already made enquiries about Lasting Powers of Attorney, we certainly advise that you do look into it and inform yourself

about them. A reliable source of information is gov.uk’s “Make, register or end a lasting power of attorney”


Monday, 18 September 2017

Lifetime Mortgage Interest Rates

Most Lifetime Mortgage interest rates are fixed for the term of the mortgage. The rates currently range from about 3.68% upwards with the rate dependant on the percentage of borrowing and other scheme options. The maximum levels of borrowing shown in the previous example commonly come with higher rates of 5.55%. The lower rates are for lower percentage borrowing. While these rates are
much higher than the residential mortgage rates currently available, they are for potentially much longer terms and they are in line with the average mortgage interest rates over the past 10 years or so. There are also some variable rate options starting at 3.5% but these are increased in line with inflation (Consumer Price Index) each year.




Monday, 11 September 2017

Some More Details of the Lifetime Mortgage

Because of the potentially very long term of the mortgage, the maximum amounts that can be borrowed are generally less than you would be able to borrow with the usual residential mortgage. Here are examples of the maximum amount of borrowing possible based on age. (Note: in the case of a couple the age that the lender’s operate on is that of the younger of the two.)


Age      Loan To Value        Maximum borrowing on property worth £300,000

55          25.5%                           £76,500

60          31.0%                           £93,000

65          36.0%                           £108,000

70          41.1%                           £123,300

75          47.0%                           £141,000

80          51.5%                           £154,500


Note: These are examples only but do represent a reasonable estimate of the maximum borrowing possible at the ages shown. In the event that there are serious medical conditions a higher level of borrowing may be possible.