BUY NOW?

The property market is generally stable with properties holding their value, and interest rates remain attractive but changes in the economy caused by possible results of Brexit actions could affect these. If a Lifetime Mortgage is something you are considering, you might wish to do it sooner rather than later.

HOW MUCH MONEY CAN YOU RELEASE

Here are some examples of the maximum amounts that could be borrowed using a Lifetime Mortgage. The examples are based on a property worth £300,000 but the scale remains the same for a property worth more and for one worth less. Just give us a ring if you want to know how much you could borrow on your property.

Note: Interest rates have generally been good in the recent past. Any

changes that might come with Brexit could change that so, if a Lifetime Mortgage is something you want to do, it may be best to do it now.

Age     Loan to Value    Maximum Borrowing on Property Worth £300,000

___________________________________________________________________

55        25.6%                £77,000

60        34.0%                £102,000 (Note: These are examples only but do

65        39.0%                £117,000 represent a reasonable estimate of the

70        44.0%                £132,000 maximum borrowing at the ages shown.)

75        47.0%                £141,000

(The illustrated borrowing amounts above assume a property value of £300,000 and, if the property is jointly owned, that the age is based on that of the younger partner/spouse. For maximum borrowing interest rates vary from about 6.0% to 7.0%. Lower percentages of borrowing give rates as low as 3.30%. Also, if there is a serious medical condition, a higher level of borrowing may be possible).

SOME OPTIONS WORTH KNOWING ABOUT

The increasing flexibility of Lifetime Mortgages includes the following facilities

1. Monthly fixed interest-only payments;

2. Ad hoc payments of up to 10% of the amount borrowed each year;

3. Borrowing is available even where there has been adverse credit, even a discharged bankruptcy;

4. Borrowing is available even where there are up to 2 lodgers or a self contained rental part of the house;

5. Money raised can be used for virtually any purpose. In our experience the money is raised mainly for the following reasons: to clear existing debt, for works to the property, to help out a family member and enjoying life a bit better.

6. Borrowing can be done either without having to make any payments with the borrowing and interest to be paid by the eventual sale of the property; or by paying interest monthly or occasionally.

FLEXIBLE MORTGAGE OPTIONS FOR LATER LIFE

Later life mortgage options are increasing. The increasing flexibility of Lifetime Mortgages are making these more and more popular. Here are some examples of cases we have dealt with recently:

- An older couple with an interest-only mortgage reaching its end and with a historical bankruptcy and CCJs were able to clear all they owed and also finance an extension to their property.

- Another couple had moved into what they were sure would be their last move and wanted to enjoy their life with a great deal of travelling while they could. They had already markedly assisted their grown-up children with their own properties and good incomes. There were some medical issues so they wanted to spend money now rather than later. They also wanted to maximise what they could get at the present fixed rates so as to avoid any possible interest rate increase in the future.

- Another couple in a Grade II listed building were reaching the end of their interest-only residential mortgage and did not want to have to move to a repayment mortgage. They wanted to stay where they were and continue with a similar interest-only type of arrangement but without a fixed term which could cause worries in the future.

- A widowed mother of two was still working but needed to extend the house so as to provide accommodation for an imminent grandchild. She wanted to pay interest monthly so the amount owed would not increase.

- Another family living in a large house wanted to keep the house for themselves and their daughters but were not able to access normal mortgage facilities due to the pensions they would receive being insufficient to fund the needed borrowing.

SUMMERTIME TIPS

While there are a lot of changes on the horizon politically we believe that that best way to deal with personal finances is keep to the basics of providing a valuable service or product and ensuring that you have more money coming in than going out.

Lasting Power of Attorneys (LPAs) and Wills – reminder. It may be that the older one gets the more aware one is of older people and the challenges that come in later life. Certainly we do see more situations where Wills and LPAs (Lasting Power of Attorney) are important. We do recommend that you seriously consider setting these up or reviewing them if you already have them.