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PETER and Helen Harmsworth, aged 68 and 71, took out a reversion plan through Key Retirement Solutions early in 2003. They raised £62,720 in exchange for 80% of the value of their cottage, which at the time was valued at £200,000.

The couple, from Littlehampton in West Sussex, used the money for new windows at their 200-year-old cottage, as well as a range cooker. And, says Mrs Harmsworth (pictured with grandchildren Laura, Ashley, James and George), the money got them out of a financial hole.

'We had a shortfall on our endowment mortgage and had run up debts on credit cards. We used the money to pay off all our debts. It's enabled us to have a more comfortable retirement.'

Financial Education for most of the UK needed desperately. Lifestyle mortgages next misselling scandal - hope it wasn't the same IFA - I know they aren't all bad.

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PETER and Helen Harmsworth, aged 68 and 71, took out a reversion plan through Key Retirement Solutions early in 2003. They raised £62,720 in exchange for 80% of the value of their cottage, which at the time was valued at £200,000.

That can't be right can it? Obviously it's not right, but surely those figures are out of whack?

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So let's get this right...they sell 80% of their property to some company for 30% of it's value, then use some of the money to put new windows into a house in which they now only have a 20% stake?

stupid is as stupid does as forrest would say

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So let's get this right...they sell 80% of their property to some company for 30% of it's value, then use some of the money to put new windows into a house in which they now only have a 20% stake?

stupid is as stupid does as forrest would say

Thats good financial advise. Beggers belief

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Got this off the web page.

Be afraid, be very afraid....

You retain the right to remain in your home for as long as you choose.*

You have the financial freedom to move to another property, without financial penalty.*

You are guaranteed a cash lump sum payment or a regular income.

You will never fall into negative equity should house prices drop in the future.

In addition, all member companies offering home reversion plans follow a code of practice which ensures that all their literature provides a clear explanation of what is involved and the implications of their equity release plan.

* subject to individual plans terms and conditions

there is something wrong with the laws in this country

Edited by lowrentyieldmakessense(honest!)

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Guest Charlie The Tramp
You retain the right to remain in your home for as long as you choose.*

* subject to individual plans terms and conditions

As long as you don`t live TOO long. :)

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You will never fall into negative equity should house prices drop in the future.

Because we will take the house off you well before this happens?

In other words...

WE will never lose our profit margin should house prices drop in the future.

I wonder what will happen to this couple when 'their' property loses more value than the value of their 20% stake when they first entered the scheme?

Never mind, they will probably get to keep their new cooker...

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So let's get this right...they sell 80% of their property to some company for 30% of it's value, then use some of the money to put new windows into a house in which they now only have a 20% stake?

stupid is as stupid does as forrest would say

Do you not think the figure they got has had a 1 missed off by mistake? The figures make sense then.

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Guest Charlie The Tramp

They should have gone for a non repayable mortgage. The amount lent depends on age in my case 23%. The interest is added every year and the mortgage with interest redeemed on death, with the balance from the sale going to the estate. So if you lived a further 10 years the amount owed would have doubled with the compounded interest.

The best deal is for 90 year olds up to 60%, so they can have the time of their life before kicking the bucket. :D

Norwich Union

How do lifetime mortgages work?

Put simply: You take out a loan secured on your home.

There are no monthly repayments to make and the loan and interest are repaid when the lifetime mortgage ends which is normally when you die or move into long-term care. You retain full ownership of your home and carry on living in it for the rest of your life.

You can even move if you want to, subject to your new property meeting our lending criteria. Our lifetime mortgages are flexible enough to move with you. If you move to a property of lower value, you may have to make a part repayment. If you move or change ownership of your home, you may have to repay some or all of the total loan including interest. You may even be able to take out additinal borrowing subject to lending criteria at the time, although the availability of additional borrowing is not guaranteed.

Our no negative equity guarantee, ensures that we will never ask you or your estate to repay more than the value of your property. This means that no matter what happens to property prices, your family or estate will never be left with a debt that cannot be repaid by the sale of your property, providing peace of mind for you and your family.

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No, not really.

This is a sad case of exploitation, totally devoid of 'sense' on the part of the elderly couple.

Why not? Add a 1 and the figures make perfect sense. It's a much more plausible explanation than that a couple of not particularly advanced years are so senile they can't work out 80% of 200.

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Do you not think the figure they got has had a 1 missed off by mistake?  The figures make sense then.

Not really, they've got a negative amortization type thing, I think the numbers are right, imagine spending £20k on a credit card and never paying off the balance nor the interest (ignoring the fact they'd send heavies after you), no doubt the balance would soon be £40k once you compound interest on the interest.

I always though these companies were dodgy when I was under the impression they just gave you the market value then sat on any future gains, it seems they don't take any risks at all, you end up with a ever larger loan that you never have to pay off. They can't lose.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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