Tag Archives: Equity Release

Equity Release

Does the Saga Equity Release Calculator Show Impartiality?

Plenty of websites offer calculators, information, and other tools to help consumers seeking equity release products. Yet, these websites work in different ways. For example Saga does not provide equity release schemes. They utilise Just Retirement for equity release products. Saga has built their business on offering annuity products Just Retirement actually creates. To understand the impartiality of the Saga equity release calculator you first have to understand more about the company.

Saga and Just Retirement Partnership
The Financial Service Authority (FSA) recently became the Financial Conduct Authority (FCA) and with this a new overhaul of annuities has occurred. Saga has a strong business partnership with Just Retirement on the basis of helping the company sell their annuity based equity release schemes to retirees 55 years or older. Saga may have to re-evaluate their partnership due to government changes or wait to see if Just Retirement will make changes to remain in the equity release industry.

Saga is going to be directly affected if sales of annuity based products begin to fall, after all they are selling these products as an intermediary between consumers and Just Retirement. Saga, for their ability to generate business on their site and help Just Retirement is paid fees. These fees are paid by Just Retirement, so the relationship is not truly an independent one, but more of a symbiotic relationship.

Saga also has information regarding interest rates as they apply to more than Just Retirement products. For example the Aviva Flexible Lifetime Mortgage plan is examined by Saga. The plan Saga offers is not considered as competitive as Aviva interest rates, which are found on sites like Equity Release Supermarket and other top equity release intermediaries. Basically Aviva information might be on Saga’s site, but just as a comparison.

Other Details to Know about the Situation
Saga’s partnership with Just Retirement Solutions operates within a tied panel basis. It is independent as other brokers. There is even the option of going off panel when necessary; however, this is not always offered right away. In fact consumers have to understand how the company works before they can request independent information.

How it Ties in
With the Saga equity release calculator values are going to assess Just Retirement plans. The information on the site is going to be about the annuity plans Just Retirement has. Yet, when you consider the differences of another company and what the Aviva equity release calculator may show, you will see different results. Aviva currently offers an APR as low as 5.63%, while Saga equity release schemes are over 6%.

One of the things Saga does to get your interest is to lower costs initially such as the upfront fees to obtain the loan. Remember you are obtaining a lifetime mortgage with an annuity from Just Retirement. There is a potential to save £500 in upfront costs, but this big savings is not always going to translate throughout the rest of the lifetime mortgage.

APR is an interest rate that will add up over the years. It compounds onto the loan and principle balance. Even if you have an annuity that is working to save up money for the eventual repayment is the higher interest rate on the product itself really going to help you save enough?

The answer is not always. Going with a big savings in the beginning or having an annuity structure is not always better than the low interest rate particularly if the rate is fixed at the lower rate.

Using Tools to Discern the Truth
You should not ignore the information you can find with both the Aviva and Saga calculators. Instead, use both tools to get results. By examining the different companies and their products it is possible to make a sound decision. Of course, you want to have more information than just the calculator to base your decision on. The calculator has to be used as an estimator of potentials. It is a guide that provides you information about specific products or if you find an impartial one, a calculator that provides information on several types of equity release.

Due diligence and speaking with an independent broker with no ties to any company is going to help you find the one product that is best suited for you. As you consider using the Saga equity release calculator keep in mind the above information, gain your calculations to use as a guide, and remember to speak with an expert then make a decision.

Equity Release

Household Finances Could Fall to 2005 Levels

If you were wondering what the true impact is of the current economic crisis and austerity measures, we now have a much clearer picture on how the finances of many families are suffering in real terms. It has been revealed that family finances are likely to equate to the levels we had as far back as 2005 – that is a fall back to levels 9 years ago. The recession is over, but there are still struggles as the economy slowly gains momentum. For retirees it is time to think about equity release and if it makes sense to take out this product to help stimulate the economy and live an easier retirement.

Salaries and Cash Flow
The reasons behind this are mainly due to the fact that salaries are either rising at pathetic rates, or for the most part, are actually continuing to fall when more and more companies are struggling to keep their heads above water during these hard times. You also need to bear in mind that taxes and cut-backs are paying a weighty toll on family incomes.

Cash flow is still not as stimulating to the economy as it was prior to the two recessions. In fact there is a larger emphasis on saving money right now. It is the first time in more than a dozen years that saving money has been important. When you consider the troubles the economy is facing right now and consider your retirement you may be worried.

If you are on the eve of retirement age such as 65, still have a mortgage, and worry your pension is not going to cover expenses consider your options.

Retirement Funding Choices
As a person heading in to retirement, you could hold out a few more years to try and save a little more towards your pension. Many also consider retiring, but hiring on in a part time position. Part time jobs are difficult right now though so you might not be able to find something you could enjoy as a partial retirement.

Another choice is to sell what you own by downsizing into another home, fewer cars, and other things you have. You could start to live a moderate life with few entertainment options. You may not be able to take those holidays you waited for given your pension and retirement funds, but you could live comfortably.

Your other option and one that continues to gain notice is releasing funds from your home to live on. With this in mind, it is no wonder that people are looking to measures such as equity release plans to tide them over. We all hope for better years in the future and the mentality seems to be that we need to do all that we can to protect our way-of-life and ensure that our family does not suffer too much. These plans release cash from your home turning your cash poor situation into one that is comfortable. Of course you need to be property rich in terms of having enough equity to make this concept plausible.

Home reversion and lifetime mortgage choices help you gain equity from your home to live on comfortably. You can still downsize and maintain a modest life, but you also have rainy day or holiday funds. With plenty of benefits such as tax free cash, using it as you want, and helping family it can be the perfect solution.

There are disadvantages to these plans, of course, but you can also benefit. It is a choice of what is right for you and how you want your retirement to be like when the job situation is not looking so great. The whole point is that you might be able to hold on and not retire versus not using equity. If the economy and employers won’t sustain this option then you have to look for alternatives.

The Shocking News and your way around it
This shocking statistic is definite evidence of the fact that the austerity measures implemented by the Government are hitting every household much harder than was originally forecast. Many people were opposed to such a stringent programme being introduced to take care of the debt the country is in; they favoured a longer-term and far less painful plan.

This is all a catch 22 situation at the moment. Many people are so grateful to still have their role of employment at the moment that they would not dare to rock the boat, so to speak. It would appear that employers are fully switched into this mentality and for the most part, are taking full advantage of this. So you could take advantage of equity release and retire on time.

Equity Release

Can London Commuters Influence the Maximum Equity Release?

London commuters have their pulse on the city in more ways than one. Finding great schools, having conveniences one desires, and simple transport needs have all influenced how London moves the rest of the country forward. Add in the property prices which have started to increase significantly in the last years and commuters are starting to increase UK housing prices. It takes a little longer for country areas to see the effect, but it is happening. Some generations are working at home for two days and then going into London the rest of the time. For retirees or those over 55, something else entirely different is going on which starts with the use of London online equity release calculator.

The Over 55s are Pushing for Growth
Buying a second property in the country is just one thing that Londoners over the age of 55 are doing. They want to have a rural home for relaxation, but still have their finger on the pulse of London. London commuters getting closer to retirement are also looking at the possibility of having enough money to spend in retirement and whether they need to move house using such London equity release schemes. As housing prices in London spike, many retirees looking to rest in the less busy sections of Greater London know that now is the time to sell. In selling, they can gain equity from their home and buy something a little quieter yet still next to the city they love. Once that money is used, an option is to release equity from their home.

Several reasons can be used for why growth of the housing market is being pushed not only in London, but outside of it. One main factor with regard to commuters is that they are hoping to increase their equity release as a means of taking advantage of better London real estate, which helps push the growth of the maximum equity release.

On the flip side when housing prices increase in areas like London and Greater London there is a potential to tap into more equity in the existing home. Rather than moving house this is the main focus. Commuters wish to have more income for when they go into the city. In order to gain this income they turn to equity release schemes. As bringing wealth into the economy is mainly through equity releases right now this pushes for the growth of housing values. As housing market values increase the maximum equity release amount increases as well.

Calculating the Potential
With a website specifically tailored towards London themes and aided and abetted by an equity release calculator, it is possible for anyone over 55 to start calculating their chances of increasing their maximum equity release. The online calculator is going to take the value of your home, your potential life expectancy based on current age and health, and determine the maximum lump sum you can take out in a lifetime mortgage.

Only a certain percentage of equity can be released from a property with these products. There is no repayment of capital sum during the lifetime of the owner. Instead, it is the beneficiary that will have to make arrangements for the repayment. This is because no monthly payment is needed. Of course, if the homeowner moves out of the home then the loan has to be repaid then. But on the assumption a London homeowner decides to pass away at home, the compounded fixed interest rate adds onto the capital sum borrowed. This can never be greater than the housing market value.

As the London housing market is increasing in value right now, it means there is a potential to tap into more equity from the home. With Londoners calculating potential lump sums it helps push the value even higher in several London areas, thus helping the entire UK.

How are Homeowners Using this Money?
Already it has been discussed that other properties might be purchased which helps the growth of the property market. It is not the only reason, though. For some Londoners, getting more equity released from their home is about obtaining a lump sum they can gift to their children. This gift is then used for a down payment on a property perhaps outside or near London. Again over 55s are helping the housing market improve even indirectly by taking out an equity release mortgage and allowing their children to use the proceeds from it.

Whether you decide to use your equity release for this matter or you hope to increase the equity release maximum, take advantage of the information you can learn via the www.EnhancedLifetimeMortgage.co.uk website.