Archive for the ‘home reversion plans’ tag
Home reversion plans coming back
Home reversion plans had some bad press a few years ago and rightly so. I don’t think anyone could argue that the industry wasn’t in a bit of a mess. More regulation is in place and IFAs need to take a home reversion exam before giving advice. Not only this, the equity release industry has tidied itself up on its own accord and is making a great name for itself amongst the public and the circles that matter. The press will continue to talk rot about the home reversion industry until the news stories from this successful cycle start to filter back to them. Lazy journalists are the biggest contributor to the bad press that surrounds equity release and home reversion plans and until they stop recycling old news without a good sense of editorial judgement this will continue.
Equity release mortgages are simple really.
As far as anything in the financial services industry goes, lifetime mortages are actually quite simple. However, they haven’t always been simple: we have the Financial Services Authority to thank for that. Now, with regulations at a steady compromise between government and provider, we can be thankful that ‘industry standard’ is a term bandied about in the equity release and home reversion market.
There hasn’t always been an industry standard criteria or anything else for that matter. Terms have varied widely along with the criteria for equity release mortgages qualification. Now terms still do vary and there are different criteria amongst the providers but these differences are usually only on the peripheral and unusual criteria; not the standard ones such as age or loan-to-equity ratio.
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Home reversion is a growing industry
As much as lifetime mortgages have been around for generations in some form or another, it is still a growing industry. Talk of equity release flailing is not backed up by the figures, with applications for equity release mortgages up around 5-10% every quarter. It is a very useful tool for retirement planning and so will continue to rise both here and in the USA.
Home reversion as a form of SHIP equity release is also an industry growing far faster than any other in the financial industry…aside from corporate insolvency of course. The reason for its popularity is that home reversion does not affect the right to stay in the home. This right is guaranteed for life making it a win-win situation allowing you to stay in the home you love and have worked for as well as opening up more money so as to enjoy retirement.
Because of these clear advantages, home reversion plans will continue to grow in popularity as more people realise these important factors.