Life Loans are back

Brendan, you are playing a blinder. Nobody likes to hear the truth... especially when it highlights their ignorance.

I should know. I often have my ignorance highlighted and I don't like it. I usually keep quiet though when I'm exposed...
 
New Listener James

191K owed. Mother borrowed 75K to renovate and travel !! Mother in long term care. He couldn't help his mother when she initially borrowed. That his mother did need the money. Greatest ... The amount repaid was astronomical. 6% I think. The family were not able to repay the loan. House sold. To clear debt they had to sell house. And now house is sold there is no money for fair deal (so the state pays)

BB - you can repay you can repay all or part of the loan at any time, apparently this law doesn't apply to old loans. Loan was over 14 years and no repayments were made !!!

BB reading from brochure: says it can be repaid in part .... James then backtracked and said he was not in a position to repay it. 5.5%. BB says it's too high because of programmes like Joe's as nobody will go into this business.

Hall interjects. Bad banks.

Joe going after BB.

The James comes with the emotion.

Siobhan - elderly vulnerable people

BB if show was more balanced. If people borrow money, pay nothing back, then of course they are going to be astronimical.

X: moral justice .........

Siobhan, BofI, vulnerable elderly people, draconion interest rates, immoral,
 
odyssey06 said:
It'd be nice if we could hear from someone responsible who took out the loan and could speak positively as to what they did with the loan.
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It would be nice if we could get actual figures and what they did with the money. All I've heard is greedy adult children who didn't help their parents.
 
BB - a solicitor was involved in each loan for the borrower. It was advised in the brochure to get independent financial advice.

Listener now saying it's the solicitor fault !

BB says it's a formal mortgage type document,

Joe reading: Borrower get money via Borrower's solicitor. Must sign that you've had legal advice.

All loans are compound interest in interest in response to a listener interjecting ...

Ann 6.1%, when she first purchased she was paying 15% on her mortgage.

Hall on about the selling on of loans. About how we pumped billions into banks. No return for ordinary people. game of golf....
 
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BB explaining to Joe how solicitor's work !!

Joe says people didn't see it as a mortgage. They saw it as a trip to Australia.
 
No one has yet given an option for what the older person can do if they need money for a reasonable reason, such as improving their house for their old age. Someone say there are other options but no says what they are, there isn't unless your children can raise the money to give you.
 
Speaking as a bit of a gambler one of those elderly people who borrowed the money was a total shark. It was a sure thing only that they lived about 15 years longer than planned.
 
Monbretia said:
No one has yet given an option for what the older person can do if they need money for a reasonable reason, such as improving their house for their old age. Someone say there are other options but no says what they are, there isn't unless your children can raise the money to give you.
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- loan sharks
- credit unions
 
Bronte said:
It would be nice if we could get actual figures and what they did with the money. All I've heard is greedy adult children who didn't help their parents.
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Children can't always afford to help parents either as parents in 70s usually coincides with expensive college years or many other reasons.

When my father needed an extension to his house I would have gone for a life loan if they were available, my brother and I financed as much as we could, other siblings were not in a position to help due to their own situations. It's not always as straightforward as kids give them money, many parents may not want to ask their children either.
 
James Smith's partner's mother

- 12K in 2002 died 2012 bill 43K
- Partner did not know about loan
- Partner tried to make a repayment plan
- Her brother
- Loan has to be repaid on death

Joe says wow.

Burgess, 6.9% max interest would be not be 43K now.

James: paperwork.
 
Monbretia said:
Children can't always afford to help parents either as parents in 70s usually coincides with expensive college years or many other reasons.

When my father needed an extension to his house I would have gone for a life loan if they were available, my brother and I financed as much as we could, other siblings were not in a position to help due to their own situations. It's not always as straightforward as kids give them money, many parents may not want to ask their children either.
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So in those circumstances a Life Loan is the best option. Or sell the house. What other solution is there.
 
Bronte said:
James Smith's partner's mother

- 12K in 2002 died 2012 bill 43K
- Partner did not know about loan
- Partner tried to make a repayment plan
- Her brother
- Loan has to be repaid on death

Joe says wow.

Burgess, 6.9% max interest would be not be 43K now.

James: paperwork.
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I think a major issue is the low level of financial literacy and numeracy.
 
Hall says you can waive legal advice ! But the bank won't give you a Life Loan without a solicitor so I don't understand what Hall means.

Ciara borrowed 45K - 137K. Not 100% on years. Found out about the loan when they applied for it. Never spoke about it after that. House went below amount of borrowings. Morals. They had paid off their house. Needed help from CC to put in adapted bathroom. House sold, paid it off (I think bank lost out here).

How would a bathroom cost 45K? Joe doesn't ask that.
 
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