When a client leaves their home because they need to go into Long Term Care or they die, there is no Early repayment penalty. Recently clients needed funds to repay their interest-only mortgage. I researched the lowest rate available but there was a complicated calculation required to confirm the Early Repayment Charge. This involved the FTSE UK Gilts 15 Years Yield Index. If the Index is lower at the time they want to repay and they don’t qualify for a free repayment and the Index is lower than at the time they bought the plan then they will be penalised. They are unable to tell today what … [Read more...] about Early Repayment penalties and the plans that suit best
There may be unscrupulous brokers who are advising people to take out the maximum that they can get out of the valuation of their properties. Their reasoning is that they will be getting "Today's Rate" which could well increase in the future. This concerns me as it could turn out to be not such a straight-forward sensible option to take. The reason that this is recommended is that if you agree to take the maximum then the broker will gain the maximum amount of fee from the Lender and also block you from drawing more money out of your house in future. There is also the fact that if it is … [Read more...] about Beware So-Called Specialists with low fees!