Can I Remortgage after 1 yearIs it possible to take back the mortgage after 1 year?
25 per cent. £40,000.
Home owners over the age of 60 take out a home on their land, but do not pay back this money. However, there may also be some advantages for home owners. The reduction of interest paid on the loans and thus the amount of any debts may allow the borrowers to take out another piece of own capital on their premises.
Many of the current stock exchange equity-release transactions are much more agile than those made five years ago. However, some creditors only calculate a lump sum withdrawal premium after five years. Some creditors, however, such as Norwich Union, apply repayment sanctions throughout the duration of the loan. The reason for this is that most of Norwich Union's lifelong mortgaged properties - like many others on the open markets - provide a set interest period for living.
Estimating the extent of this fine may be problematic. The Norwich Union says that the amount of the charge will depend on the loss it suffers when repaying the loans. The information Norwich Union is sending to clients states that if the gold return decreases by 1 per cent between the date the loans are taken out and the date they are repaid, clients will face a repayment fine of 10,300 regardless of whether the loans are repaid one year or 15 years after they were taken out.
Mirfin, the Senior Vice President at Key Retirement Solutions, a finance consultant specializing in corporate finance transactions, says that most consultants should be able to obtain this information for clients. It points out that the normal client will only pay 1,250 to change a lifelong loan if it has been in place for five years or more.
Normally these are 1.5 per cent of the loan value - for a £40,000 credit this means paying a further £600. However, he says: "If you look at the cost reductions to be achieved, it seems to be a rather empty point. "Many retirees will also have a hard time finding these charges, regardless of the amount of money they can save.
Many of them have even taken out a stock option program because they found it difficult to sustain their standards of retirement. Possible advantages may not be so significant if the saving merely results in the assets being liable to death duty.
Recall also that saving 60,000 plus depends on house owners who live for 15 years or more. If possible, landlords should look for unbiased counsel. House owners are paying the brokerage only if they continue and remortgage. Say, if you have a 40,000 pound mortgage, this can be for a 42,000 pound mortgage and the account can be used to repay the commission.
Both John and Lilian Morris were excited about their remortgage - the change of their lifelong mortgages was to make sure they left their kids a larger legacy. They took out an equityset credit with Julian Hodge Bank seven years ago. We were looking for funds to buy house upgrades and a marriage," John says.