Monthly Archives: October 2012

Nationwide has announced it will no longer offer interest-only mortgages to new or additional borrowers.

The change takes effect from Thursday 11th October.

A statement which went out to mortgage brokers read: “We will no longer offer interest-only mortgages for any new or additional borrowing.

“Existing customers may retain their interest-only mortgage, but cannot increase their borrowing on that basis.

There are no other changes to criteria or products.”

A spokesperson for Nationwide told Mortgage Solutions: “Nationwide has seen a sharp decline in lending on interest-only products in recent times and currently only 3% of our new lending is interest-only.

“This will not affect any existing customers as those already on interest-only will be able to continue on an interest-only basis, only existing borrowers seeking to increase their loan will be moved onto a repayment product.”

Equity Release

Equity release is one way of funding a more comfortable lifestyle in retirement or fulfilling their aspirations, whether you want to: –

  • Supplement your retirement income.
  • Raise a capital lump sum.
  • Enjoy retirement more.

It is not uncommon for people to feel uncomfortable about discussing major financial decisions with their children, or indeed other family members or lifetime friends.

It is also not uncommon for people exclude family from their financial affairs for one reason or another, but, one of the main complaints made by families of those who have released equity from their homes – usually by taking out a lifetime mortgage against the value of the property – is that they were unaware of their parents’ decision… a decision that deprives future generations of some of their inheritance.

Therefore, it is important for them to do so, if only to get a second opinion. Older homeowners should look to those they trust to guide them when making decisions that could not only improve their lifestyle in retirement, but could also reduce what is left to future generations.

Failure to discuss finances can have other implications. Those hoping to leave an inheritance to future generations can see a large chunk of their life savings built up over decades of hard work swallowed up in care home fees or worse, left to the state in inheritance tax.

At the other end of the scale there are the so-called SKIers, as in ‘Spending the Kids’ Inheritance’, who are enjoying their retirement to the full. It may only be when they have passed away that their children and grandchildren discover, sometimes with some resentment, that the inheritance they hoped to receive has significantly diminished or done completely.

If you would like to discuss equity release in more detail and to understand if it is the right choice for you. Call now and book an appointment 01489 580020 or via our Contact Us page.

Shadow Treasury financial secretary Chris Leslie has hit out at mortgage lenders for “sneaky” standard variable rate rises and called on them to do more to warn customers of potential rate rises.

Speaking at a fringe meeting on debt at the Labour autumn conference in Manchester yesterday, Leslie said it is “amazing” that rates are going up when funding is so cheap.

In August Santander increased its standard variable rate by 0.5 per cent to 4.74 per cent which came into force today and earlier this year Halifax, Clydesdale Bank, Yorkshire Building Society and the Co-operative Bank increased their rates.

If you have a mortgage and are currently on the lenders standard variable rate, then why not give us a call to see how much you could potentially save by switching lenders.

Call us on 01489 580020 to discuss your requirements.

You can also contact us via the Contact Us page or by email if you prefer info@parkgate.net and see what we can offer you to ensure that you are not over paying being on the lenders standard variable rate.