Tag Archives: equity release

Consumer, Consumer Information, Consumer Services, Financial Services

Research Show 4.4 Million over 21s Still Rely on the Bank of Mum and Dad, reports Bower Retirement Services

Research from LV = reveals 4.4 million over 21 year olds still borrow money from their parents. The average monthly donation from parents to adult children is £175. This is used to cover rent, bills and help pay off debts. Additionally £9,476 is awarded to fund weddings, holidays, further education and to help young adults get onto the property ladder. Although it helpingyoung adults is hardly surprising, the research revealed parents expect to continue to support their ‘children’ until the age of 38, now the average age of a first-time property buyer.

This obviously puts great financial strain on Britain ‘s parents. It eats into retirement funds and one in ten parents surveyed by LV = admitted they had spent everything they had on their children. The issue isn’t going to go away soon, particularly if predictions that the average age of a first-time buyer will be 41 by 2025 are correct.

Parents need to prepare for the future early to ensure they are well equipped financially to provide for themselves and help out their grown-up children when necessary. There are several options available, but with interest rates currently being so low, saving plans aren’t the most viable option.

Equity release plans are a more effective option for homeowners. Bower Retirement Services, an award-winning equity release advice service, can help homeowners find anequity release plan that’s right for them.

There are four types of plans available: lump sum lifetime mortgages; lifetime mortgage with flexible cash release, also known as a drawdown mortgage; interest only lifetime mortgage and home reversion plans.

The most suitable, and now the most popular comprising 68% of the market, are drawdown plans. Homeowners are lent money based on their property’s value and additionally can withdraw regular cash amounts at a frequency and value chosen by the individual. Interest is charged, but it’s only repaid when the homeowners die or move into permanent care. These mortgages allow parents to look after themselves during retirement but also offer the ability to provide assistance to their offspring.

Via EPR Network
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Consumer, Consumer Information, Consumer Services, Financial Services

Equity Release Becoming Popular Retirement Fund Solution for Baby Boomers, say Bower Retirement Services

The total value of equity release advances from April to June 2012 was £224.8 million, reported the Equity Release Council, an increase of 22% on the same period of 2011. Additionally, this amount represents the highest quarterly figure since 2009 (£231.7 million). Furthermore, the real number of plans grew by 16% between Q2 2011 and Q2 2012 showing interest in the market is up, along with actual value.

According to the Equity Release Council’s figures, people are now choosing to take drawdown plans instead of lump sum mortgages. This shows they prefer to spread risk and use equity release as a retirement income. The news comes as its revealed retired homeowners now have a total unmortgaged property wealth of £756.7 billion.

Bower Retirement Services, which offers award-winning specialist equity release advice, says equity release is a simple and effective option for homeowners looking to provide for their retirement and it exploits the property price rises of the last forty to fifty years. Many in the baby boomer generation lost large amounts in pension blunders in the nineties and again in the last recession. However, thousands continue to be locked up in property, potentially providing a retirement income for homeowners.

Bower Retirement Services offers advice on all types of equity release, from lump sum lifetime mortgages to home reversion plans, and its equity release calculator is designed to help homeowners accurately gauge how much cash they can expect to release on each type of plan.

There are four types of equity release plan, but drawdown plans now the most popular, accounting for 68% of the value of the entire equity release market. Bower Retirement Services says these types of mortgage are most suitable to homeowners looking to provide themselves with an income during retirement. The lender loans the homeowners a percentage of the property’s value and also agrees to pay a regular cash sum, or ‘drawdown’ on the mortgage value. Interest is accrued, but it is not charged until the homeowners die or move into long term care. Homeowners choose the term and value of the drawdowns, offering more flexibility than a standard remortgage plan.

Via EPR Network
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Business, Consumer, Consumer Information, Consumer Services, Financial Services

Prudential Lifetime Mortgage research finds that more than one in four Britons will head to parents or in-laws homes during the festive season

Prudential Lifetime Mortgage reports the traditional family Christmas is set for a comeback this year, with more than one on four (28 per cent) of British adults intending to spend Christmas day at parents, in-laws or relatives homes.

The findings, from new research conducted for Prudential Lifetime Mortgage, reveals that just one per cent of British adults intend going to a hotel or restaurant for Christmas day and just two per cent are going on holiday.

According to the Prudential, the family home is set to feature heavily in plans for the entire festive period with more than one in three British adults (37 per cent) intending to spend time over the festive period at their parents or in-laws homes. Of these people more than half (51 per cent) said they are going to parents/in-laws homes as they see it as a hub for the family to get together. 32 per cent said they like getting their Christmas meal cooked for them. 28 per cent said spending time at their parents/in laws homes makes Christmas feel more like a holiday and 22 per cent said going to their parents/in-laws home reminds them of their childhood.

For over a quarter of the nation the family home will be the Christmas venue of choice as people look to tighten their belts this Christmas. The findings reveal that 40 per cent of British adults say they will spend less on Christmas this year.

Keith Haggart, Director of Lifetime Mortgages, Prudential stated: “While it is inevitable that many people will be looking to cut back this Christmas, that doesn’t mean that Britain will be spending the festive period mired in gloom. Millions of people will be spending more time together as a family and for many that means going to their parents or in-laws to enjoy Christmas in the family home.

Keith Haggart continued, “The findings underline the emotional importance of the family home to the entire extended family and at a time when many households will be looking at ways to boost their income, downsizing is not only a challenging proposition in a flat housing market, but could also potentially remove the enjoyment experienced by the rest of the family when visiting the family home. An option is for people to explore whether an equity release plan could help them gain an income from their property while still being able to continue living in it.”

ICM interviewed a random sample of 1050 British adults aged 18+ from its online panel between 7th -9th November 2008. Surveys were conducted across the country and the results have been weighted to the profile of all British adults. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmresearch.co.uk

About Prudential:
Established in 1848, Prudential plc is an international financial services company with a product range which extends from personal banking, insurance, pensions and retail investments, to institutional fund management and property investments. In the UK Prudential is a leading life and pensions provider with around seven million customers.

Via EPR Network
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