Lifetime Mortgages

Lifetime mortgages are proving to be an increasingly popular way for people to raise more cash to fund their retirement years. Lifetime mortgages allow you to release a cash lump sum from your home to spend how you wish, with typically no monthly repayments to meet.

Interest accrues on the lifetime mortgage loan at a fixed rate each month. The loan, plus the accumulated interest, is repaid in full when the property is sold, usually upon you (and your partners) death, or entry into long term care.

Advantages of Lifetime Mortgages

• There are typically no monthly repayments to meet.
• You retain full ownership of your property.
• If the property increases in value, your estate will still benefit from this.
• There is an option to repay the loan at any time.
• The cash lump sum is yours to spend as you wish.
• Some lifetime mortgages allow you to guarantee an inheritance.
• 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 Lifetime Mortgages

• The amount you leave as an inheritance is reduced. Some lifetime mortgages, 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 then an early repayment charge 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.

Further information about lifetime mortgages can be given to you over the phone or within the comfort of your own home with one of our dedicated, local equity release advisers. They will be able to tell you which type of equity release scheme will work best for your individual circumstances, or whether it is in fact, right for you at all.

Book an appointment today or request a call back from one of our equity release specialists to find out more about lifetime mortgages or any other type of equity release plan. Or, alternatively request a FREE equity release guide which we will post straight to your home.

Before you consider an equity release scheme, please read is it right for you? carefully.

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

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