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Does Aviva’s Equity Release Calculator Provide the Best Equity Release Maximum Lump Sum?

Posted by Stephen Hall + on November 21, 2014

Competition in the financial market particularly with loan products keeps companies from charging too much and makes it possible for consumers to find a product that fits their needs. By going through an independent brokerage firm working for you and not for the company offering the product you can get great advice that steers you towards the best equity release maximum lump sum. Unfortunately, if you do not go through an independent site you run the risk of a company representative only offering their products. This is the case with Aviva.

Aviva and Tied Sale Representatives
In July 2013, Aviva stopped providing in house representatives and moved to outside brokers with tied representative. It means these brokers are only allowed to talk about Aviva lump sum products or the flexible plan offered. Unless asked directly about other products the representative does not have to give you an alternative to Aviva. This makes the advice skewed, the products less competitive, and you could end up with results that do not fit your needs.

The Aviva equity release calculator works as a representative would. It is designed to give you results based on Aviva products only. Often it only offers the maximum lump sum plan results rather than any other Aviva product an independent website has access to. You could end up paying a higher interest rate, seeing a lower maximum than another company can provide, and overall results that are not the best for your situation.

Using an Independent Calculator
If you truly want to get independent results that are not skewed, but working to provide you the best equity release maximum lump sum then you need to find a website that is wholly independent from any equity release lender in the market. These websites exist as do their independent calculators.

A calculator on one of these websites is going to provide you with the best result after taking your information and checking to see the best interest rate available for your age and property value.

From these results you can then contact an independent broker who will not only look at the product the calculator provided results for, but also see if there are other options out there that could work better for you.

Independent Advice Factors in More Information
An independent equity release broker is able to ask you some pointed questions with regard to your needs, your health, and other factors. The information you supply is going to help the broker narrow down results in the market and possibly increase the maximum lump sum available to you. They may not always find a better product than the calculator results showed; however, they will try so that you can make an educated decision about the financial product best suited for you and your household.

Results are Guides
You should know that if you go off of a calculator including the Aviva equity release calculator results, it is an estimated number. The result is only a guide and should be used as such. If you attempt to use that number as a guarantee you may become disappointed after speaking with any adviser including an independent adviser.

The calculator is unable to examine all aspects of your life. It is unable to make anything but an impartial result based on the input you give it. The accuracy of information is one way to get results closer to what is attainable.

Your age must be used to get results, but the age you use has to be the youngest homeowner. This is a homeowner who is able to sell the property because they are named on the property title. If a person does not have rights to make decisions about the property they cannot count. The youngest person also has to be at least 55 years of age for an equity release plan. Plans are given out up to age 90, but again the youngest homeowner is the age that applies.

For property value you need to be as close to the potential market value as possible in order to get accurate results. An independent broker can do an appraisal to get the actual value, where you might be going off current sales in your area that are comparable to your home size, age, and upkeep. Keep this in mind as you look for the best equity release maximum lump sum. It will have a bearing on the results you receive.

Tags: Aviva, Aviva Equity Release, Aviva Equity Release Calculator, Aviva Lump Sum Products, Aviva Products, Best Equity Release, Best Interest Rate, Equity Release Broker, Equity Release Calculator, Equity Release Lender, Equity Release Plan, Financial Market, Financial Product, Flexible Plan, Loan Products, Lump Sum Plan, Maximum Lump Sum, Maximum Lump Sum Plan, Property Title

Posted in: Equity Release

Finding The New Administrators Of Northern Rocks Equity Release Mortgage Book

Posted by Stephen Hall + on March 25, 2014

If you are one of the old benefactors of Northern Rock Equity Release then you should be aware that Northern Rock do not write new equity release business any longer. This doesn’t means that your deal is over but in fact, they have sold off their equity release mortgage book to Papilio UK Equity Release Mortgages Ltd who are now responsible for managing all those old completed cases which were originally taken out with Northern Rock Equity Release.

There was a time when Northern Rock stood nothing less than the other major equity release lenders such as Aviva, Portman Building Society, Hodge Lifetime and even In Retirement Services. They got in deep trouble with the credit crunch that swept the financial world leaving them as one of the worst affected. After the sell off in March 2012, Papilio UK Equity Release became the new administrator, who are now handling all the enquiries of customers belonging to Northern Rocks equity release book.

If you are trying to enquire about taking some more cash from your home equity loan which was originally offered by Northern Rock, then you must know that the new Papilio administrators don’t allow you to take any further loans on your home. Apart from that, you might be shocked to hear that the rate of interest that you are paying to them is approximately 1.3% more than what the other lenders are offering in current scenario’s. Therefore, rather than struggling on thinking your bridges have been burnt, get some financial advice on this matter.

Considering the power of the compounding interest, you should consider the potential savings you could make by switching to another equity release lender who is offering a much better rate of interest.

An equity release remortgage is therefore one angle that should be explored further. This option could be exercised as it not only promises you a huge saving on interest in the long run, but also the new lender may be able to assist with further borrowings on top. Therefore you can opt for an immediate release of equity or even have a cash reserve to be accessed at any time in the future via a drawdown lifetime mortgage basis.

If you are worried about repayment and other miscellaneous charges on account of closure of your original Northern Rock equity release mortgage then take a breath of relief. The total set up cost to switch over is not as much as you might anticipate.

Currently, Papilio are letting customers go with NO early repayment charge given that they wish to reclaim their initial investment. You can find many current equity release brokers offering free advice and free valuations as well as cashbacks up to £1000 upon the remortgage of your property. Looking diligently, you can even strike on the interest rate as low as 5.57% per annum.

With interest rates never been so low & having the security of fixing them at today’s rates for life, never has there been a better time to review your old Northern Rock lifetime mortgage.

Call 0800 678 5159 if you require further assistance about contacting Papilio UK Equity Release Mortgages Ltd.

Tags: Aviva, Credit Crunch, Drawdown Lifetime Mortgage, Early Repayment Charge, Equity Release Brokers, Equity Release Business, Equity Release Lenders, Equity Release Mortgage, Equity Release Remortgage, Hodge Lifetime, In Retirement Services, Interest Rate, Northern Rock, Northern Rock Equity Release, Papilio, Papilio UK, Papilio UK Equity Release, Papilio UK Equity Release Mortgages, Portman Building Society

Posted in: Equity Release

Which providers offer Enhanced Lifetime Mortgages?

Posted by Stephen Hall + on January 15, 2014

Equity release mortgages are varying as people’s needs are different. Usually you would just visit the normal equity release schemes which would either be a type of lifetime mortgage or a home reversion scheme. However, there is a fresher type of equity release called the enhanced lifetime mortgage. This lifetime mortgage can provide an even greater maximum lump sum that doesn’t require you losing ownership of your home like in a home reversion plan.

You generally consider an enhanced lifetime loan if you are in poor health or such that is deemed to be eligible due to smoking or excessively drinking. New applicants to this lifetime mortgage find it appealing due to their poor health. This is because lenders believe that you will die sooner than people applying for a normal equity release so they can recoup their money sooner. Therefore, you would receive a higher lump sum with this scheme, meaning that you can enjoy life without any monetary restrictions.

To apply for an enhanced lifetime mortgage you need to be at least 55. There is an application to fill out that asks specific questions about your health and lifestyle. This application looks at lifestyle choices such as smoking and drinking that can be dangers to your health. The application also asks your weight to see if there are obesity or heart concerns. The provider will take into consideration if the applicant has a severe health issue like cancer or other life threatening diseases. This is due to the fact that with a decreased life expectancy of people with illnesses, the provider will release more equity.

There are three main providers of an enhanced equity release scheme: Aviva, More2life and Partnership. You should look at approaching these companies if you are looking to borrow and you suffer from minor or severe health impairments. Alternatively, you should speak to a financial advisor to see if you are eligible for an enhanced equity release scheme.

The enhanced equity release scheme is often overlooked by applicants, because they are not as promoted as normal lifetime mortgages but companies like Aviva or More2Life are becoming more popular with this product. Also, applicants fear that because of their health that they would have the opposite effect in the amount of cash they will receive for their equity.

Enhanced schemes are not for everyone. As stated, there needs to be a significant health risk to your life expectancy for you to qualify. If you speak with one of the providers available to you and feel this scheme is not for you, do not give up. There is monetary help out there for you. You may want to speak with a financial advisor to see what other plans you might be eligible for.

Highlights of Enhanced Lifetime Mortgages:
1)      You do not sell your home to obtain cash.
2)     The cash you receive in a lump sum payment can be used as you wish.
3)     You will not have to pay any monthly payments or interest with this mortgage option.
4)      It is for individuals who have severe health issues or potentially reduce life expectancy.
5)      There is a potential for leaving an inheritance.

Concerns:
1) Your family will need to pay the mortgage back. This may be through the sale of your home. If there is a sale needed your family may still get an inheritance based on the housing value increase of your home. The sale price minus the outstanding loan balance with interest may equal extra funds.
2) If you have a companion, partner, or are married you may be leaving your partner without extra funds for their retirement by taking out equity when you are at an earlier age.

Enhanced equity release schemes allow you to take money out when you are 55, but there can still be quite a few years left for your spouse or even you should medical changes occur. One major benefit of the enhanced plan is having the funds to cover extra medical expenses that may not be a part of NHS, such as cancer treatments that are not covered under your UK government programme.

Applicants also have a tendency to keep health problems secret, which is understandable. In the case of enhanced lifetime mortgage the sicker you actually are the more you can receive for your equity. Companies should be making potential customers more aware that this option is actually available to them and applicants should not shy away from disclosing any health issues.

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Posted in: Enhanced Lifetime Mortgage, Equity Release