Issue n. 1| January 2015
LIFETIME MORTGAGE INSIGHT B r o u g h t t o y o u b y T h e P r e m i e r E q u i t y R e l e a s e C l u b
Do your clients have a mortgage shortfall?
Why the equity release market is growing and can it continue?
By Keith Haggart, Just Retirement Page. 2
By Alice Watson, Stonehaven
Welcome
Page. 4
2015... Can it be better than 2014? You bet it can! By Jane Hanlon
We are delighted to welcome you to the first edition of Lifetime Mortgage Insight. Designed for industry based personnel to keep them up to date with changes in this growing market. We felt it was time that our industry made its own mark and place where providers and staff working in the industry could have a sounding platform. We welcome articles, contributions and feedback to educate and improve knowledge of personnel in the lifetime mortgage market.
Jane Hanlon & Lyn Perrett The Premier Equity Release Club
15 year gilt rates 15 year gilt rate at 05/01/15 = 1.98% 15 year gilt rate at 12/01/15 = 1.96%
A round up of 2014 demonstrates the changes and appetite for lifetime mortgages in 2015
Early 2014: New club - The Premier Equity Release Club – with a NEW help desk New Lender - Pure retirement launched - with a fees free style product.
Spring 2014 Budget bomb shell: Unprecedented changes to pension and annuity choices from April 2015 announced in the spring budget led to a catastrophic drop in lifetime lenders share prices within hours of the announcement and the realisation of no plan B for funding lines for the future.
will affect lifetime mortgages, the most significant was the interest only style that now has to prove full monthly affordability to the lender by way of income, and bank statements. (This was a first for lifetime mortgages as in the past it has always been based on age and valuation and never on monthly payments as they are an option with ability to switch to roll up.)
Equity release
Then add MMR (Mortgage Market Review) into the equation that
The unexpected Budget and MMR caused major issues for the providers as it was not expected or forecast.
The good news Aviva launched the overpayment option and the early redemption exception clauses to their product Continued on page 2...