This equity release malarkey
- Thread starter spitfire
- Start date
Butcher's Coat
Striker
In what way marra?
Surely people go into these things knowing the full consequences?
Unless they're thick as mince.
Surely people go into these things knowing the full consequences?
Unless they're thick as mince.
That can be said about a lot of things. But once one court case is won, that opens it up to the masses who want something for nowt. It becomes free money for people.
The one thing I would say, is financial institutions are a hell of a lot more careful than they were in the past. Do they really want another PPI payout. It’s also a great reason for banks to get you to apply for products yourself via online banking or in their app. You’ve self executed it.
spitfire
Striker
Some people never get to grips truly with financial matters/planning and will blindly trust a product because it exists. Lots of us got involved in the endowment promises of the early 90s. Lots of us were pretty savvy or thought we were at the time.
Butcher's Coat
Striker
So why didn't they sort out the means to pay it off when they took out the thing in the 1st place.??
Can't see any financial ombudsman coming to the aid of people who didn't do this to cover the eventuality.
I too took out an endownment policy in the late 80's - and it paid out - only just though.
But I was well aware of it's performance over the ensuing years.
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42
Striker
There's a large number of the population who are absolutely clueless when it comes to finance. They'll have taken it cos its cheaper not really understanding that they haven't paid any capital. If its found that things weren't properly explained or that it was knowingly sold as an unsuitable product then it could open the floodgates.
It's similar with PPI, people knowingly signed up taking the insurance.
jackynutmeg
Striker
42
Striker
I'm not talking about endowments. Endowments had a 2nd payment to an investment/insurance fund on top of the interest. These don't.
spitfire
Striker
I changed mine too, but the selling of them at the time led many to believe they would be quids in.
I can't see this equity stuff being anything more than a bit of a scam on an older section of society who perhaps are not as savvy as many of us. They tended to place a lot more trust in people and institutions in those days.
Boz33
Striker
Oh aye I’d imagine a load of folk have been well and truly ripped right off
The same could be said about PPI, yet look how much compo that has splurged out.
There’ll be loads of shyster salesman about guaranteed
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My brother had an interest only mortgage and no means to pay of the loan once the 25 years were up. He got the last laugh though and died of a heart attack 6 months before it was due. Life policy cleared the debt so free house. Didn't get to enjoy it though. 
Deleted User 11453
Striker
I've had interest only for years but lumped some off every month. I do £200 a week direct debit against the mortgage but if it's getting towards end of month and I'm a bit short I just cancel it for a week or two
Tees Exile
Striker
Equity Release 4u - get money in 5 minutes etc. It’s going to end in tears.
Deleted User 11453
Striker
I tend to setup a monthly overpayment each January for the year, this year the amount is lower than last year as we have spent some cash on doors and windows. If there is any spare cash I might pay off a small lump sum.
We fixed for 10 years so we have a target mortgage amount to reach in 9 years’ time.
Stepover
Midfield
Tbf Equity Release is a regulated area and advisers of it have to take specialist exams to deal. Plus there are only a handful of equity release providers iirc. The number of cases v ppi must also be minuscule.
I’m sure there will be bad outcomes for a % but in environment above both the customer and provider should be reasonably covered (you would hope)
Boz33
Striker
Once one person wins, everyone will just say everything wasn’t explained to them properly/didn’t know what they were getting into.
PPI would have been sold knowingly to millions so the loans were protected but I guarantee even if people knew what they were signing they still claimed for it and got their compo
Stepover
Midfield
I take your point but talking about an unregulated product sold to millions (with dreadful bank records) v a regulated product where I’d expect the level of record keeping and documentation to be higher and for something that is used by a much lower proportion of society.
I’m sure there will be cases but it’s not going to be like PPI or PPI2 with billions set aside. IMHO.
