Following on from the previous few months, this month I am looking at New Life's legal processes and highlighting those areas that you may want to bear in mind when seeing clients.
ID - The first point to highlight is that I have to provide certified ID to New Life's solicitors. Whilst all other LTM lenders will accept IFA certified ID, New Life insist that we provide both ID and address ID that is Solicitor certified.
Documentation - The clients have to sign a copy of the mortgage offer (be aware the offer has to be signed on the same paper that it is issued on! New Life will not accept the offer signed on anything other than the original paper), the ERC certificate and the Mortgage Deed (which has to be witnessed by a Solicitor/Legal Executive).
Searches - New Life plans, from the legal perspective, tend to be more costly, we have to provide Land Registry searches and Land Registry fees to New Life (which at their lowest will be £80).
Processing - New Life and Hodge are the only lenders that insist on papers being issued in the post and the legal pack arrives separately from the offer which comes direct from New Life. Similarly, they will not accept/start work from packs that are e-mailed and insist on waiting for hard copies. All of the other lenders will start working immediately on e-mailed copies. So, if a speedy completion is an issue then you need to be aware of this.
Overall, we do find the New Life cases do not proceed as smoothly as some lenders largely due to the additional legal requirements of New Life which can cause delays. However, we are able to work through any issues.
03.07.2013 - ERC reports that almost one in four adults (24%) - and almost one in three of those aged 61 to 75 (32%) - are banking on a lottery win for financial peace of mind, compared with 22% who believe that a regular saving habit is their best chance of financial security in later life.
04.07.2013 - A M2L nationwide poll of advisers has found that 45% of advisers believe that equity release plans that allow homeowners to continue to pay interest on mortgages are a viable solution for interest only customers with looming capital repayment deadlines.
12.07. 2013 - Equity Release sector predicted to exceed £1bn for the first time since 2008 - A 12% year on year surge in the value of sales in the first half of 2013. Intermediaries accounted for 93% of all completions in 2013 (less than 75% in 2008). The typical amount of equity released fell slightly from the first quarter of the year from £55,985 to £54,196.
19.07.2013 - Aviva to increase interest rates.