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Help clients unable to downsize to get cash

Much has been written over the years about downsizing being an alternative to equity release. And of course, good advisers will always include this option in client conversations.


In reality, downsizing is equity release by another name and one that is being used by clients of all ages.

The question for our industry is whether this financial asset and transaction is considered as part of the everyday advice process or whether the industry is being driven by attraction to a product’s benefits rather than property as a financial asset concept.

Many people approaching retirement find themselves in large houses that were bought to raise a family in. In the current market many of these properties are proving difficult to sell, at least at prices close to the estimated value in the client’s mind.

For these customers there is a great opportunity to discuss releasing cash to help finance retirement. Safe Home Income Plans insists all products are portable without penalty so when the market recovers borrowers can take their scheme with them as they downsize.

With 28% more individuals reaching retirement this year than last year and an amazing 179,000 more people hitting state pension age this year, the potential is clear.


Industry shrugs off 25% dip in FTB mortgages as post-Christmas blues

A 25% drop in first-time buyer mortgages in January has been dismissed by industry commentators as a seasonal dip. Latest figures from the Council of Mortgage Lenders show 35,600 loans worth £5.3bn were taken out for house purchases in January – a fall of 25% by volume and 24% by value compared with December 2011. […]

Cambridge and Saffron lending up

Cambridge Building Society has reported gross mortgage lending of £144.5m for 2011 – a 13% increase on 2010. Its 2011 results also reveal a pre-tax profit of £600,000, down from £1m in 2010. The society’s mortgage balances were up 8% on the previous year at £55.7m, while its savings balances increased by 7% at £940,999. […]

The Mortgage Mole

No final answer The Financial Services Authority could have done with the ’phone a friend’ lifeline last week when quizzed by the Treasury Select Committee about the Mortgage Market Review.

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Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.


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