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By Miscellaneous
#1911815
avtur3 wrote: ... remortgage is equity release ... the problem is that people are drawn in by product descriptions which have no clear ( and universally accepted) definitions.

Whilst it's true to say remortgaging will release equity from your home, remortgaging does not generally fall under the definition of Equity Release. On the other hand, if your intent was to remortgage with a lifetime mortgage (which isn't really remortgaging), which is defined as equity release, then that is quite different from a conventional mortgage.

These products do have clearly accepted definitions.

https://www.legalandgeneral.com/retirem ... y-release/

Please be careful not to inadvertently take out a lifetime mortgage in the belief it is a conventional mortgage. Not that I think that's likely.

As has been said in the thread, equity release is not always a bad idea. :thumright:
Last edited by Miscellaneous on Wed May 18, 2022 6:09 am, edited 1 time in total.
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By Flyin'Dutch'
FLYER Club Member  FLYER Club Member
#1911816
:Come on @avtur3 that's a bit disingenuous innit?

You asked about 'equity release' and got entirely reasonable answers with the appropriate warnings from fellow forumites who all will want the best for those asking questions.

To now come back and say that remortgaging is also ER and that therefore the tone of the replies is too negative is a bit 'meh'

Or are you selling ER?

:D :D
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By Miscellaneous
#1911817
Flyin'Dutch' wrote:To now come back and say that remortgaging is also ER...

That's the worry, FD, to REmortgage is to return to a conventional mortgage, which a lifetime mortgage is most definitely not. Hence remortgage ≠ equity release, as defined. Therefore care is required in one's understanding. :thumright:

Best finding these things out here though. :thumright:
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By avtur3
FLYER Club Member  FLYER Club Member
#1911835
Flyin'Dutch' wrote::Come on @avtur3 that's a bit disingenuous innit?

You asked about 'equity release' and got entirely reasonable answers with the appropriate warnings from fellow forumites who all will want the best for those asking questions.

To now come back and say that remortgaging is also ER and that therefore the tone of the replies is too negative is a bit 'meh'

Or are you selling ER?

:D :D


Apologies ... that was not my intention.
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By defcribed
#1911863
Equity release is very definitely not the same thing as re-mortgaging an unmortgaged property.

Re-mortgaging is where you get a sum of money in exchange for a charge over your house and start paying it back straight away.

Equity release is where you get a sum of money in exchange for a much more aggressive charge over your house, but don't pay it back until you die. When you die they take it all back plus a very considerable profit - such a profit as to make the the most expensive 'mortgage' anyone ever had.
By avtur3
FLYER Club Member  FLYER Club Member
#1911870
defcribed wrote:Equity release is very definitely not the same thing as re-mortgaging an unmortgaged property.

Re-mortgaging is where you get a sum of money in exchange for a charge over your house and start paying it back straight away.

Equity release is where you get a sum of money in exchange for a much more aggressive charge over your house, but don't pay it back until you die. When you die they take it all back plus a very considerable profit - such a profit as to make the the most expensive 'mortgage' anyone ever had.


What you describe is what I understand is known as a home reversion plan. without doubt they are very poor value and it appears that is the product which has brought such bad publicity to the notion of equity release. By comparison a lifetime mortgage is a very different product. Interest rates are not penal, no proportion of the property is 'sold' to anyone, if the interest on the advance is serviced then in effect it is nothing more than an interest only secured loan, which can be redeemed at any time. Or, if no repayments are made, then the interest compounds up until such time as the policy holder dies, goes into care, or again it can be redeemed at anytime, though obviously there will be a higher amount of interest to be paid. The interest rate is fixed for the life of the product meaning it is possible to project the exact balance at anytime in the future. if the interest is serviced then the balance does not increase.
Last edited by avtur3 on Wed May 18, 2022 12:03 pm, edited 1 time in total.
By Bill McCarthy
#1911871
Such schemes, including funeral plans etc. are never put in place to benefit the “living” and the “small print” really tells the tale of who will be fleeced in the end.
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By T6Harvard
FLYER Club Member  FLYER Club Member
#1911897
I haven't checked but I guess Money Saving Expert website will have plenty of info on all versions of equity release and the like. Also the independent Money Advice Service.

I'd be wary of the wolf in sheep's clothing due cuddly name for same harsh schemes...
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By Sir Morley Steven
FLYER Club Member  FLYER Club Member
#1911919
We are currently thinking about this. Nobody to leave money to, I want to die totally brassic but only just!
We are getting professional advice on options.
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By Rob L
#1911932
Sir Morley Steven wrote:We are currently thinking about this. Nobody to leave money to, I want to die totally brassic but only just!
We are getting professional advice on options.


Steve;
I'm your long-lost son/nephew/cousin/son-in-law/neglected grandchild/cat's mother's first grand-kitten *
(*delete as appropriate).

Please leave it to me!
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By Dodo
FLYER Club Member  FLYER Club Member
#1911936
Sir Morley Steven wrote:brassic


It is Boracic.

As in Boracic Lint, being cockney rhyming slang for skint.

DOI my mother believed she was a Cockney as she was born in Bow, but she was not actually born "within the sound of Bow Bells," which are the bells of St Mary-le-Bow, which is in Cheapside.
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By Pete L
FLYER Club Member  FLYER Club Member
#1911939
London was quieter then :-)

Although according to Wikipedia, a cockney can be born in Romford.

I have more house than I now need, but thinking of renting it out rather than selling.
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By defcribed
#1911951
avtur3 wrote:
defcribed wrote:Equity release is very definitely not the same thing as re-mortgaging an unmortgaged property.

Re-mortgaging is where you get a sum of money in exchange for a charge over your house and start paying it back straight away.

Equity release is where you get a sum of money in exchange for a much more aggressive charge over your house, but don't pay it back until you die. When you die they take it all back plus a very considerable profit - such a profit as to make the the most expensive 'mortgage' anyone ever had.


What you describe is what I understand is known as a home reversion plan. without doubt they are very poor value and it appears that is the product which has brought such bad publicity to the notion of equity release. By comparison a lifetime mortgage is a very different product. Interest rates are not penal, no proportion of the property is 'sold' to anyone, if the interest on the advance is serviced then in effect it is nothing more than an interest only secured loan, which can be redeemed at any time. Or, if no repayments are made, then the interest compounds up until such time as the policy holder dies, goes into care, or again it can be redeemed at anytime, though obviously there will be a higher amount of interest to be paid. The interest rate is fixed for the life of the product meaning it is possible to project the exact balance at anytime in the future. if the interest is serviced then the balance does not increase.


avtur3 I don't think you read what I said properly. I'm not talking about a lifetime mortgage, and from your original post neither are you. I'm talking about equity release, as are you. Lifetime mortgages are something totally different, remortgaging is something different again.

Just forget equity release. It's a rip-off, a con-job, taking advantage of people who don't really understand money or financial instruments. As with everything there is a very small number of people who, through quirk of circumstance, may genuinely benefit. But it is not you, statistically at least.

Nearly all equity release deals are a last-resort measure for the customer. People who've run out of money, have no income or potential income and a house as their only asset.

Contrary to the tv adverts, well-heeled women in their 60s don't ask "what's equity release, Jack?" as they walk round a National Trust property. The customer is either totally stupid and conned, or else is signing through gritted teeth knowing it's the only way they can eat next month without selling the house.
By avtur3
FLYER Club Member  FLYER Club Member
#1911957
defcribed wrote:
..... avtur3 I don't think you read what I said properly. I'm not talking about a lifetime mortgage, and from your original post neither are you. I'm talking about equity release, as are you. Lifetime mortgages are something totally different, remortgaging is something different again. ....




I think there are crossed wires here, From what I can make out a life time mortgage is now the most popular form of equity release.