Lifetime Mortgages
A lifetime mortgage allows homeowners over the age of 55 to release a cash lump sum, flexible borrowing reserve or a regular income via a mortgage secured on your property.
No monthly payments are required with this plan. Fixed or variable interest is added to your loan monthly or annually. The loan and interest is not repaid until your home is sold. This could be when you die, enter into long-term care or move property.
It is important to understand that interest will be applied to both the loan, and any interest that has already been added. As a result, this borrowing is more expensive than a normal mortgage with monthly repayments. The increased cost is to reward the lender for providing the funds without the need for monthly repayments.
Important factors to consider:
- Releasing equity from your home will reduce the value of your estate, affecting the amount of inheritance you will be able to leave
- Releasing equity may affect your tax position and entitlement to any means tested state benefits
- Assess the alternatives to releasing equity from your property - e.g. downsizing
- Future property prices may be higher or lower than they are today
- Obtain a second opinion, discuss your plans with family or a trusted friend
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.