Lifetime Mortgages For Over 55’s – The Cost Of Getting The Wrong Product – Part 1 …

The long term cost would have been £60,000 for one recent client!

Whilst researching a recent Lifetime Mortgage case it was apparent there were a number of potential lenders willing to advance the £156,000 lump sum that was required by my client. However, the cheapest fixed interest rate available to our client was 0.82% less than the most expensive one.

On face value it doesn’t sound a big difference, until you take into consideration that many “Lifetime Mortgage” lenders, offer fixed rate products for the whole duration of the mortgage. As the Interest rolls up on a Lifetime Mortgage, this would mean the 0.82% difference would be compounded through until the end of the life of the mortgage.

The difference over 22 years for this particular client, would have amounted to £60,044 of additional interest, which I’m sure you would agree is a hugely significant sum of money. This example shows the effect of selecting the wrong Lifetime Mortgage product and the benefit of comparing the “whole of the market” using a Lifetime Mortgage Expert.

Our clients Peter (aged 70) and Penelope (aged 66) were both retired and looking to utilise their property asset, so they could stay close to their family and friends in their locality. They had looked at the option of downsizing to a smaller property, but couldn’t find the right home at the right price locally.

They decided to draw £156,000 as a lump sum, but we also arranged an equivalent flexible facility should they need extra money in the future. In line with our “Qualified Advice, Zero Broker Fee”* proposition, we did not charge the client any broker fee for arranging this lifetime mortgage.

It does raise the question with Interest Rates currently so low, are there existing Lifetime Mortgage holders that should consider “re-mortgaging”? Are they paying too much interest on their existing mortgage? Be sure to check the “The Cost Of Getting The Wrong Product – Part 2”.

You can read the article here …

If you require advice on Lifetime Mortgages you can contact The Lifetime Mortgage Expert at Unusual Mortgages on 0845 474 3075. We would be very happy to assist you in finding the right product, without charging you a broker fee for arranging your Lifetime Mortgage.

Free Quick Guide Brochure

Lifetime Mortgage Expert offer a “Quick Guide To Lifetime Mortgages”, that provides all the relevant information you need free in a convenient PDF download. This document is not thirty pages of hard sell, it’s three pages of directly relevant information, containing all the essential things you need to know about Lifetime Mortgages.

Most importantly we make this download available to you, without you needing to give us any personal details up front, including your property value, address, phone number and email. There are many places you can try and get a free guide to Lifetime Mortgages, but most will want your personal details, so they can then keep phoning you to sell their services and products to you.

Our policy is very different, we make our “Quick Guide” available free or charge, without collecting your personal data. When you are ready to proceed, we then ask you to call us to talk about your requirements. We will even make time to speak with you for around 15 minutes free of charge without any further commitment at that stage.

When we say our Quick Guide to Lifetime Mortgages is Free, we actually do mean FREE! See our other real life examples further down in this blog to read more about the types of Lifetime Mortgages available and the scenarios they can be used.

If you would like to download our Free Quick Guide To Lifetime Mortgages then visit www.lifetimemortgage.expert The Lifetime Mortgage Expert, Chris Morgan can also be reached by email at enquiries@lifetimemortgage.expert

Chris Morgan’s full Biography can be read here …

Here is also a direct link to the Free Quick Guide …

http://www.lifetimemortgage.expert/assets/Lifetime_Mortgage%20_Expert_Guide.pdf

*Please Note: 

Lifetime Mortgage Expert is a Trading Style of Unusual Mortgages who are authorised and regulated by the Financial Conduct Authority. Registration number 497173. We do not charge a broker fee for Lifetime Mortgages (without ongoing monthly payments) where the initial lump sum withdrawal is £50,000 or more (this is not including cash reserve) instead we receive a commission from the mortgage lender.

If you wish to draw less than £50,000 we may charge a small fee to ensure a minimum total earning of £995. Please contact us for a specific quotation. In the Lifetime Mortgage Survey 2019, the average broker fee being charged by a financial adviser for arranging a lifetime mortgage was £1210 and the largest fee charged was £2395.

This entry was posted in Fees Free Mortgage Advice, Free Financial Advice, Interest Only Mortgage, Interst Only Mortgages, Lifetime Mortgages, Qualified Advice, Retirement Mortgages, Uncategorised, Zero Broker Fee and tagged , , , , , , , . Bookmark the permalink.
  • Lifetime Mortgages

    “Qualified Advice, Zero Broker Fee”

    Unusual Mortgages are Independent Mortgage Advisers who specialise in Lifetime Mortgages, Retirement Mortgages and Regulated Equity Release for over 55’s. Our resident “Lifetime Mortgage Expert” is Chris Morgan who has 30 years experience in Banking, Finance and Mortgage Advice. You can read his career biography at the link below this column. We have agencies with all the major lifetime mortgage providers and are able to provide Independent advice from the Whole of the market.

    Products …

    The concept of Lifetime Mortgages, Retirement Mortgages and Regulated Equity Release for over 55’s has grown massively over the last 20 years. It is very true that the initial products that were released into the market received poor press and were not popular. However, in more recent times these products have become highly regulated, with product providers having to meet industry standards and provide certain assurances and guarantees over negative equity – we think this is a very good thing.

    Qualications …

    Financial Advisers also have to pass a higher level qualification to be able to arrange Lifetime Mortgages, Retirement Mortgages and Regulated Equity Release. However, we have noticed that consumers have been left with a difficult choice between “chicken farm” financial advice by companies offering these products in huge volume, or local financial advisers who rarely are asked for advice in this area. Your alternative is to approach Chris Morgan, the UK’s leading Lifetime Mortgage Expert, who specialises in mortgage products for people over 55 without charging a broker fee*.

    Fees …

    He offers highly experienced “Qualified Advice, Zero Broker Fee”, which means those drawing £50,000 or more are likely to save themselves an average of £1210* in brokers fees. Instead of offering you a free pen, calculator or shopping vouchers with your quotation, we offer you enough of a saving on your advice fees advice fees equivalent to a weekend break away? Chris is always interested to hear which destination you would choose with the money you will save?

    *Please Note: 

    Lifetime Mortgage Expert is a Trading Style of Unusual Mortgages who are authorised and regulated by the Financial Conduct Authority. Registration number 497173. We do not charge a broker fee for Lifetime Mortgages (without ongoing monthly payments) where the initial lump sum withdrawal is £50,000 or more (this is not including cash reserve) instead we receive a commission from the mortgage lender.

    If you wish to draw less than £50,000 we may charge a small fee to ensure a minimum total earning of £995. Please contact us for a specific quotation. In the Lifetime Mortgage Survey 2019, the average broker fee being charged by a financial adviser for arranging a lifetime mortgage was £1210 and the largest fee charged was £2395

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