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April 2010 #4

Discussion in 'SP1' started by MindFull, Jan 14, 2022.

  1. MindFull

    MindFull Ton up Member

    Hi All,

    Why does the examiner's report increasing house prices as a risk? I thought the risk was a fall in house prices -> unable to pay back the loan with the proceeds of the sale.

    Thanks.
     
    MindFull, Jan 14, 2022
    #1
  2. Mark Willder

    Mark Willder ActEd Tutor Staff Member

    Hi

    Yes, you're right. This is a typo in the examiners report. The ASET that we had at the time said:

    "a fall in the value of property prices – the risk here is that, on the death of the second life, the value of the property is not sufficient to meet the insurance premium (for the equity release variation)"

    which fits with your explanation.

    Best wishes

    Mark
     
    Mark Willder, Jan 14, 2022
    #2

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