What is a lifetime mortgage?
A lifetime mortgage is the most popular form of equity release. It allows homeowners aged 55 and over to release tax-free cash tied up in their home. The amount of money you can release depends on things such as your age, health and the value of your home.
With a lifetime mortgage, you can take either a lump sum, where interest accrues on the full amount from day one or following an initial release, in a number of smaller amounts, known as a drawdown. This could save you thousands in interest if you don't need all the money straight away.
There are typically no repayments to make with a lifetime mortgage, as the amount borrowed and the interest is repaid when the plan ends. That's usually when either you pass away or move into long term care. When you take out a lifetime mortgage, the interest accrues, then rolls up and is added to the loan. This is also known as compound interest.
Our adviser will personalise your plan to make it suitable for your requirements. For example, with some of our plans, you can choose to guarantee an inheritance for your loved ones through inheritance protection.
For added peace of mind, we can personalise your plan with downsizing protection so you can move home in the future if you need to. That usually comes into effect after you've had the plan for five years and if your new property doesn't meet our criteria.
As with any mortgage, what remains from the sale of your property after your plan has come to an end can be passed on as an inheritance.
All our plans are approved by the Equity Release Council, so all come with the no negative equity guarantee. That means you'll never owe more than your home's worth, so you can't pass on any debt accrued through equity release to your loved ones.
For more information, please call us today on 020 8798 0184 or email us at email@example.com