This equity release malarkey

Stepover said:
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.
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I’m betting it’ll be the same thing, at the end of the day you still have folk selling products to people, so there will be a fair few who were economical with the truth, to get their selling bonuses and there’s the way in for compo.
How much it’ll cost I’ve no idea as I assume although PPI would be many more cases, the amounts would be lesser, than the amounts given over for equity release.
You’d also have to factor in the value of the houses vs the equity released and were all valuations above board.
Loads of possibilities and outcomes
 


Boz33 said:
I’m betting it’ll be the same thing, at the end of the day you still have folk selling products to people, so there will be a fair few who were economical with the truth, to get their selling bonuses and there’s the way in for compo.
How much it’ll cost I’ve no idea as I assume although PPI would be many more cases, the amounts would be lesser, than the amounts given over for equity release.
You’d also have to factor in the value of the houses vs the equity released and were all valuations above board.
Loads of possibilities and outcomes
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It’ll be a much lengthier & time consuming process via the regulator. Agree awards would be higher.

The level of work per case is also much much higher. Advise. Suitability. Meetings. Cooling off periods. Vulnerable client assessments etc.

I’ve actually got the exam but never worked in that area. I’ve no real concept of annual volumes etc so maybe I should just pipe down!!
 
Stepover said:
It’ll be a much lengthier & time consuming process via the regulator. Agree awards would be higher.

The level of work per case is also much much higher. Advise. Suitability. Meetings. Cooling off periods. Vulnerable client assessments etc.

I’ve actually got the exam but never worked in that area. I’ve no real concept of annual volumes etc so maybe I should just pipe down!!
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No idea but like all things who reads the small print totally? Or that will be the defence of the claimants. At the end of the day you still have an actual salesman of types convincing folks to take up the offer, especially if their is commission based targets as well.
We all like to think people are honest but when it comes down to sales and commission, a lot of people’s scruples dry up somewhat and as we have seen in the PPI crap the financial sectors is rife with them
 
Butcher's Coat said:
In what way marra?
Surely people go into these things knowing the full consequences?
Unless they're thick as mince.
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This is what we thought in 2006 when variable rate mortgages over here were the thing. Low interest rate for first 3 years than a huge balloon increase. So many toxic loans made this way.

As for releasing equity in a house, unless you have a major debt to pay off, or are looking to renovate your existing home, I'd stay far away from them. Nothing good ever came of a loan for the sake of it.
 
Slatz63 said:
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. :)
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The worry of paying off the mortgage probably contributed to the heart attack.
 
When you have slimey f***ing adverts on the telly advertising/encouraging it then you know there is few quid in it for someone somewhere and I don't mean the person releasing the equity. It's the amount of these adverts appearing that made me notice.
 
It's a massive area of growth at the moment.
The number of applications has almost doubled in the last three years apparently.
Many seem to have paid their mortgages off and realised that the pension won't cover their outgoings and there's still maintenance / costs involved in their own homes.
 

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