The Equity Release Victims Association

Good morning everyone.
I am wondering if anyone has received the following type of letter and what action they have taken if any?

From: eamon@ihfs.eu

Hi Gerry

I want to discuss with you Rothschild offer of a Standstill Agreement.
Here 3 years interest is deducted from the investment.
This interest is immediately applied against the loan.
In return for doing this Rothschild agree that that will not write to you requesting funds for a 3 year period.
To give an example:
Loan of £250.000
Interest Rate of 2%
Annual Interest Bill of 5,000.00 euros
Investment of 190,000.00 euros
Investment must return 2.63% to pay annual interest bill.

What happens is that 15,000.00 euros (5,000 euros X 3 years) is taken from the investment. These funds are credited to the loan account.

New loan Balance 235,000.00 euros (250,000.00+15,000.00 euros)
New investment is 175,000.00 euros (190,000.00 – 15,000.00 euros)
Annual interest Bill of 4,700.00 euros
Investment must return 2.68% to pay annual interest bill.

The disadvantage is that the years interest is taken from your investment so the investment needs to perform a little better, 2.68% verses 2.63%?

The advantage is that it demonstrates willingness on your side, and in return Rothschild will not request funds from you for 3 years from the date of the agreement.

What do you think?
Eamon

Well my friends, to my way of thinking there does not seem to be much in this for us, and as Rothschild are pushing it very strongly I suspect they are covering their own backsides once again?

Comments please
Regards
Gerry