Lifetime mortgage

A Lifetime Mortgage is only available to those aged 55 and over and utilises the value of your home as security for borrowing money, the main benefit being that you make no monthly repayments.

This means that by utilising a Lifetime Mortgage you could release a Tax Free lump sum – without reducing your retirement income.

Importantly, interest is chargeable on a Lifetime Mortgage and is added to the amount borrowed, the loan is repaid out of the future sale of the property, for example, if you’re applying as a couple, when the surviving partner is admitted into long term care or sadly passes away, so consideration must be given to how long before this may happen as over time the loan will increase in value.

However, our Lifetime Mortgage’s providers all offer a ‘No Negative Equity Guarantee’ meaning no debt is left to your estate and the amount repayable can generally be offset by any future increases in your property’s value – dependent on the prevailing market conditions at the time – and in most cases, the eventual sale value of your home is considerably higher than the original purchase price.

Speaking to us will help you understand the advantages and disadvantages of Lifetime Mortgages and will also explore and explain any alternatives.

IMPORTANT
Lifetime Mortgages may affect your entitlement to state benefits and will reduce the value of your estate. Think carefully before securing other debts against your home. To understand the features and risks, ask for a personalised illustration.