Lifetime Mortgage

Advantages of a lifetime mortgage:

• You continue to live in your home, whilst taking advantage of the equity available in it
• You retain ownership of the property, which means that you gain from future increases in its value although you lose if its value falls
• You can choose to take a lump sum, regular income or draw down sums of money as and when you require the funds
• If you decide to take an income it will remain unchanged for your lifetime; the only factor that can alter it is a change in tax rules
• Many lenders offer a ‘no negative equity guarantee’ ensuring the amount owed will never be more than the value of your property providing you keep the mortgage throughout your lifetime, or until you enter long term care.

Disadvantages of a lifetime mortgage:

• Unlike a traditional mortgage, you do not pay monthly interest. The interest is added to the original amount that you borrowed. This means that the amount you owe will increase over time and there will be a compounding effect. In this situation the rolled up debt will reduce the remaining value of your estate.
• Depending on your age and property value, lifetime mortgages are limited in the maximum cash you can raise
• The income in most lifetime mortgage schemes is not index linked so will not keep up with inflation
• There may be restrictions on whether someone can move into your property once you have taken out a lifetime mortgage.

If you want more information on equity release, a lifetime mortgage or home reversion plan, please call us on 0800 328 8432 or complete our enquiry form.

Our services:
Equity Release - use your property to generate income or a lump sum
Lifetime Mortgage - borrow a percentage of the value of your home
Home Reversion plans - sell part or all of your property, and keep a lifetime tenancy