Hoskin Later Life Planning - Barnstaple

With so much information it’s hard to know where to begin, let’s start with the truth. Unpick common equity release myths with this guide from Aviva.

https://static.aviva.io/content/dam/document-library/adviser/equityrelease/PF011866.pdf?li_fat_id=a64a9c57-ef23-4a52-a126-5a2d4817c47c

The Equity Release Council has published an analysis of The Financial Ombudsman Service Equity Release complaints data for the full year 2023. The Ombudsman is the last port of call (baring legal action) for aggrieved customers, or their families, who have an unresolved complaint about any aspect of their equity release plans.

If you are a Facebook or other social media user, you may come across adverts for Equity Release. These are invariably followed by a long stream of outraged comments at how bad a product Equity Release is, and how the lenders and advisers are social pariahs, ripping off the elderly.

However, the complaints data does not support these misguided notions.
For the full year, only 69 complaints to the Ombudsman related to Equity Release. Of these, 20 were upheld or partially upheld.

· Eight complaints were upheld due to delays caused by the adviser or lenders involved, some involving a higher interest rate being charged due to the delays.
· Two cases of lenders refusing to ‘port’ or transfer a loan to a new property.
· Other upheld complaints include lenders refusing to lend due to criteria changes on further advances (additional borrowing after the original loan was taken).
· Some other complaints related to lender’s procedures.
· One of the partial upholds was because offence was caused ‘by the tone of conversation between lender and customer’, and a minor uphold was against a lender for the time spent by the customer in making the complaint (the actual complaint was not upheld).

None of these relate to poor advice.

Only two of the upheld complaints appear to be for poor advice standards. The first related to an adviser who did not understand the costs involved in a freehold purchase.

The second was that the customers had savings to cover their requirements when the lifetime mortgage was arranged in 2003 - a very poor outcome in anybody’s book, and justifiably censured, but also going to show that the period after the event when a complaint can be considered is very, very long. This means that later life lending advisers need their advice to be bullet proof in all respects.

Given that only two complaints related to advice, this suggests that Equity Release advice standards have improved beyond all recognition in recent years. I think as an industry this is a positive set of data we can be reasonably happy with. Some work to do, but nothing huge.

Customers can be reassured that advisers who subscribe to the Equity Release Council standards are genuinely providing solid advice, achieving desired outcomes and with the focus on the customers actual needs and please do not hesitate to contact me if you have any questions.

Looking forward to being part of this today on International Women’s Day!

🌟 Equity release is on the rise among the middle classes! 🌟

Recent data from Pure Retirement reveals a notable surge in equity release applications from homeowners with higher-value properties. In 2023, applications from properties valued between £250,000 and £399,999 saw a 36% increase, showcasing growing interest from the middle-income bracket.

Notably, applications for properties valued between £400,000 and £549,999 jumped to 19%, reflecting a trend towards broader adoption. What's more, the data indicates a significant portion of equity release is being utilized to support family members through gifting, with 12% directed towards living inheritance.

These changes underscore the versatility and accessibility of modern equity release products, appealing to a wide audience including those with properties valued at £1m+.

Equity release ‘increasingly being used by the middle classes’ - Mortgage Solutions Equity release is becoming more popular with the middle classes, as applications for those with higher-value properties have spiked.

According to this theory we are entering an explosive phase of property price rises!

I have followed this theory for sometime.

It seems to have some merit, at least for the modern property era of the last 50 years, but will it always follow this cycle?

Interesting stuff!

I would love to know what you think?

House prices to rise 20% before crashing in 2026 says property prophet The house price prophet who forecast the last two property crashes years before they happened, has warned of another impending boom and bust on the horizon.

"Silver splitters" are more frequently turning to later life lending options to stay in their homes for longer.

In many cases, one person will buy out their partner using their own savings (18%) or the joint home will be sold and the value divided equally (17%). However, 8% of couples who divorce over 50 will use equity release to help settle their finances while still allowing one party to stay in the home.

One in 13 divorcees using equity release to stay in their home Many will buy their partner out using savings, but some are turning to lifetime mortgages to stay in their homes.

I am seeing an uplift in cases where using a lifetime mortgage can provide an option for moving that may not have been otherwise achievable 💪

Property industry reacts to Rightmove House Price Index - Property Industry Eye Property industry reacts to Rightmove House Price Index - Breaking news for estate agents and the residential property industry. Independent, unbiased, and factual reporting. A forum for discussion and debate of topics of the day. Subscribe for our free daily newsletter.

Life’s too short to let financial worries hold you back! 🌟 Take control of your future with lifetime mortgages and equity release. Start planning for the retirement you’ve always dreamed of. ”

www.hoskinlaterlifeanning.co.uk

Empower your future with the equity in your home! 🚀 Discover the possibilities of lifetime mortgages and equity release. Your home is more than a place to live—it’s a financial asset!

Click here to get started:
www.hoskinlaterlifeplanning.co.uk

Hoskin Later Life Planning More than just mortgages and equity release, we’re here to transform your dreams into reality. Envision us as your trusted financial advisers, specialising in assisting individuals aged 55 and beyond in maximizing the potential of their homes.

A home visit to a customer today, took me down to the beautiful Jurassic coast in Dorset. In a world of call centres the customer was grateful for the no obligation face to face personal advice service provided in their home. Sadly, time did not permit an ice cream on the beach this time! 🏖️

Unlock Financial Magic Embark on a captivating journey with Mr. and Mrs. Thompson as they discover the magic of a lifetime mortgage. Unveil the secret to financial freedom without losing ownership of their cherished home. A short and sweet tale that proves sometimes, the best solutions are closer than you think.

"The evolution of equity release is not merely a retrospective exercise but an ongoing journey with exciting possibilities."

The evolution of equity release – what’s changed and what’s to come Daniel Edmondson, national account manager at Advise Wise, looks at recent innovations and ongoing rate fluctuations in the equity release market, and predicts what new figures will emerge for this year.

Excited with this new flyer which includes a freephone number 😍

Equity release is a financial product that allows homeowners, aged 55+, to release money from the value of their home while still living in it.

It’s a significant financial transaction and due to its importance and the impact on family members, it’s important to seek specialist independent legal advice at the earliest opportunity.

Our experienced and specialist equity release team is dedicated to providing the very best legal advice to clients who are interested in taking out lifetime mortgages or reversion plans.

If you’d like further information about equity release and what your options could be, visit our website https://www.bartonlawltd.co.uk/ or call our friendly team on 01392 241277.

Lovely to receive this feedback from this customer where a lifetime mortgage helped to purchase the home of their dreams

Joy Harrison, Financial Adviser in Barnstaple - Read Client Reviews Read what clients have written about Joy Harrison of Hoskin Financial Planning - One of our Financial Advisers in Barnstaple

Rates continue to fall in the Lifetime Mortgage market, with the lowest fixed rate seen now at 5.13%, the lowest rate for quite some time.

I am often asked about credit card debt and if this can be cleared by borrowing on a Lifetime Mortgage. The answer is that credit card debt can be cleared, but only if it can be evidenced that it is in the client's interest to do it.

Often, clients can move their existing unsecured credit card onto a separate 0% credit card and pay the debt off quicker, as no interest is being charged. Another alternative is to take an unsecured personal loan to clear the credit card debt.

As there are no contractual payments required on a Lifetime Mortgage, some clients find that they have far more disposable income once they have completed on their Lifetime Mortgage. This can often help with clearing credit card debt too, as more money is available at the end of the month than before.

Talk to your adviser in the first instance if unsure!