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`COMPLETELY EXONERATED’ BY AN APOLOGETIC TONY BLAIRBritain fears terrorist attacksAnti-Terrorism Act allows

Posted on 25 September 2010

`COMPLETELY EXONERATED’ BY AN APOLOGETIC TONY BLAIRBritain fears terrorist attacksAnti-Terrorism Act allows for indefinite detention without trial for foreign terror suspectsJudges sit alone in immigration appeals involving terror suspectsMore judge-only hearings proposedMinisters support ID cardsLaw Lords criticise Labour government policyEven as Tony Blair apologies, he backs tougher anti-terror approach. TONY BLAIR yesterday predicted a drop in the numbers of migrants heading to Britain as a result of the Government’s overhaul of the immigration and asylum system. This might be disruptive but families know how much the property has fetched, and there is no need to pay interest.. 1974

Britain hit by terrorist attacksPrevention of Terrorism Act, introduced after Guildford, allows longer detention of suspectsJudges sit without juries in terrorist trials in Northern IrelandJudge-only courts rejected for BritainMinisters reject ID cardsEuropean Court of Human Rights criticises Labour government policy15 years later, convictions quashed. Unlike other lifetime mortgages, home reversion plans are not currently regulated.Homeowners do have another way of releasing capital and, potentially, reducing liability for inheritance tax: trading down the property ladder. Any surplus can be passed on to the beneficiaries of the estate in the normal manner Home reversion plans usually offer a larger lump sum.

Under an interest roll-up scheme, they will at least benefit from any rise in the property’s value. There is something unappealing about handing over ownership of the family home.Owners will also lose out on any future house-price gains. But it is the effect of compound interest that borrowers all too often underestimate.Home reversion plans, where the homeowner transfers the property to the lender in return for a lump sum but stays on as, in effect, a tenant, might seem a tidier solution However, Mr Boles says that such schemes are not popular. According to Mr Boles, the higher interest rates reflect the risks lenders have to take, as they cannot predict how long a lifetime mortgage customer will stay in the property.

Savills Private Finance carried out a survey last year that showed rolling up interest at 7 per cent doubles the debt in just 10 years.Today, the typical interest rate for a lifetime mortgage is 6.75 per cent, significantly higher than either the best five-year fixed-rate mortgages on the market, which are about 5 per cent, or even 10-year loans, currently running at 5.4 per cent. The exact amount depends on the scheme and the age of the homeowner, but 40 per cent is a typical value.Although most finance companies offering lifetime mortgage schemes offer a guarantee that the deal will not put the borrower into negative equity, homeowners need to be aware of the true costs. A home reversion plan takes the property out of the estate altogether, while a mortgage with which the interest rolls up will have to be paid off from the estate.This comes at a cost. A homeowner will only be able to raise a fraction of the value of their home under a lifetime mortgage. If a householder has the financial flexibility – and the foresight – to plan ahead, however, a lifetime mortgage will cut the inheritance tax bill.

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