Enhanced Lifetime Mortgages

Based on your health and lifestyle choices, enhanced lifetime mortgages are a way of increasing the cash you can release from your property. They are available for a wide range of health conditions and lifestyle choices including high blood pressure, diabetes or a history of smoking. Applying for an enhanced lifetime mortgage is straight forward and does not require you to have a medical examination. You’ll simply have to answer some short, non-invasive questions about your health and lifestyle choices and provide your doctor’s details.

Enhanced lifetime mortgages work in a very similar way to other lifetime mortgages, with typically no monthly repayments being made and the loan, plus interest, being repaid when the property is sold. The money released is yours to spend as you wish, and many enhanced plans also offer a drawdown facility, meaning you can release more money in stages, when you need it.

Advantages of an Enhanced Lifetime Mortgage

• Your health and lifestyle can be taken into account, which could increase the funds available to you.
• You can spend the cash you release as and how you wish.
• There are typically no monthly repayments to make.
• You retain full ownership of your property.
• If the property increases in value, your estate will benefit from this.
• There is an option to repay back the loan at any time.
• Some enhanced lifetime mortgages allow you to guarantee an inheritance to your loved ones.
• SHIP-approved plans come with a ‘no-negative equity’ guarantee to ensure the amount you owe will never exceed the value of your home. This means that there will never be any debt left for your loved ones to pay when you pass away.

Disadvantages of an Enhanced Lifetime Mortgage

• If you wish to increase the amount of cash beyond the original total amount agreed, you will have to apply for a further advance, which isn’t always guaranteed.
• The amount you leave as an inheritance is reduced. Some plans, however enable you to protect a percentage of your property so you can secure an inheritance for your loved ones.
• If you decide to repay the loan early, early repayment charges may apply.
• Your entitlement to state benefits may be affected, however an equity release specialist will be able to review your situation in more detail and tell you whether there will be an impact or not.

If you are interested in releasing cash from your home through an enhanced lifetime mortgage, why not speak to Key today and book a free no-obligation initial appointment with one of our expert equity release advisers, all within the comfort of your own home.

If you are considering an enhanced lifetime mortgage, you should read through is it right for you? carefully.

This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.

Back to equity release schemes.