Lifetime Mortgages
What you need to know
Let’s start with understanding some of the basic terms and considerations so you can make an informed decision.
Unlike conventional mortgages, most lifetime mortgages have a fixed interest rate for the entire term of the mortgage so you know where you stand and no changing after two, three or five years.
The release of equity can be handy for many reasons, from home improvements to helping yourselves -or family- handle life’s unpredictles!
Or maybe you’d just like to treat yourselves!
Equity release is a way to unlock some of your home ‘s worth and transform it into a tax-free, cash lump-sum.
It is simply a long-term loan that can be reimbursed through your home until you pass away or need long-term care. You’ll stay a homeowner with no need to move out until then.
The amount of equity you can release depends on several factors such as age, property value and property type.
Some requirements are to be aged 55+, own a home within the UK and live in your home permanently.
While providing an immediate tax-free lump sum, they may reduce inheritance, current income or benefits, so it’s always best to find out by talking to an expert.
What is a lifetime mortgage?
Unlike conventional mortgages, most lifetime mortgages have a fixed interest rate for the entire term of the mortgage so you know where you stand and no changing after two, three or five years.
Equity release is a way to unlock some of your home ‘s worth and transform it into a tax-free, cash lump-sum.
It is simply a long-term loan that can be reimbursed through your home until you pass away or need long-term care. You’ll stay a homeowner with no need to move out until then.
While providing an immediate tax-free lump sum, they may reduce inheritance, current income or benefits, so it's always best to find out by talking to an expert.
The release of equity can be handy for many reasons, from home improvements to helping yourselves -or family- handle life's unpredictles!
Or maybe you'd just like to treat yourselves!
Yes, there are..and each have pros and cons, according to your needs.
We would be happy to help you explore the type most suited to you!
The amount of equity you can release depends on several factors such as age, property value and property type.
Some requirements are to be aged 55+, own a home within the UK and live in your home permanently.
It's worth having a chat!
We know it gets confusing!
That is exactly why we’re here to explain your options and how to make it work for you!
....so, in a nutshell...
What are the benefits of lifetime mortgages?
There are a whole bunch of benefits to reap from a lifetime mortgage.
Click below for more info!
Your home is yours
You and your partner will remain the sole proprietors of your home with a lifetime mortgage until both of you pass away or go into permanent care. So, you’ll have peace of mind you ‘re never going to be forced to move out.
It is a common misconception that once the first person goes into care or passes the other must sell the property.
This is NOT true.
The surviving spouse or partner will be allowed to live in the property if the first person passes or goes into care. The second or surviving spouse will be allowed to live in the property until they either go into care or pass away.
It's all positive
We promise that as we are members of the Equity Release Council we will never obtain a lifetime mortgage where you will be in negative equity. In other words, the mortgage we get for you will never be more than the value of your property, so you will never be able to leave your family in debt.
Even if the value of your property declined, and the money from the sale was not sufficient to repay your loan, any remaining debt would be written off.
You are still free
If circumstances change and you decide to move to a new house, you may have the ability to do so with a lifetime mortgage – as long as it meets your provider’s lending criteria.
This is quite a rarity and something which cannot be done in all instances so be sure to tell your adviser if this is something you wish to do
You still have more to give
Your loan plus interest will be paid off in full upon selling your house.
Any leftover money will go to your estate (which means your family in most cases).
Our role is to help you make an informed decision
There are many aspects to all types of equity release and we understand that you need to make the best decision.
You will undoubtedly have many more questions, so please feel comfortable enough to arrange a free, no-obligation chat!
Frequently Asked Questions
Here are a few of the questions we regularly answer for those who are wondering if this is the correct choice.
Just remember, we’re ready to chat and answer many more!
Some lifetime mortgages allow you to move your mortgage to a new property if you decide to sell your home, provided the property is first approved by the lender.
If you want to move to a house that is considerably cheaper than your existing property, the lender may decide that they are not prepared to lend against it.
There are many advantages to Lifetime mortgages, such as the retained ownership of your property, the ability to repay your current mortgage and to provide higher income during retirement.
And more!
You may either obtain all the money in one payment or take smaller amounts in stages. Those smaller payments can be made as and when you choose to take them, so, if you are paying the deposit for the first home of a loved one or helping with tuition fees, you can “drawdown” those amounts as and when you need them.
Great question..and YES! It’s best to discuss these differences, and we’d be pleased to help you understand them fully. But to get you started, there are differences relating to the term of your loan, monthly repayments, how interest is charged, affordability checks and interest rates.
Here are a few of the questions we regularly answer for those who are wondering if this is the correct choice.
You may either obtain all the money in one payment or take smaller amounts in stages. Those smaller payments can be made as and when you choose to take them, so, if you are paying the deposit for the first home of a loved one or helping with tuition fees, you can “drawdown" those amounts as and when you need them.
You needn't make any monthly repayments if you do not wish to. Every month interest is added to the loan, therefore, your debt increases every month. The debt is repaid with the sale of the property or if family members wish to keep your home and refinances the property to repay the lifetime mortgage. This occurs when you die, go into long-term care or sell your property.
There are many advantages to Lifetime mortgages, such as the retained ownership of your property, the ability to repay your current mortgage and to provide higher income during retirement.
And more!
Some lifetime mortgages allow you to move your mortgage to a new property if you decide to sell your home, provided the property is first approved by the lender.
If you want to move to a house that is considerably cheaper than your existing property, the lender may decide that they are not prepared to lend against it.
Great question..and YES! It's best to discuss these differences, and we'd be pleased to help you understand them fully. But to get you started, there are differences relating to the term of your loan, monthly repayments, how interest is charged, affordability checks and interest rates.
