What is a Lifetime Mortgage?
Updated: Oct 8, 2021
It can be numerous things. It can be peace of mind, it can be fun, it can be a holiday or providing financial help to family. It can be knowing that when fuel bills rise in winter, that you don’t have to worry about turning the heating on. It can mean freedom.
Lifetime Mortgages are available to people aged 55 and over.
It is a mortgage on your property, but, with one huge difference to conventional mortgages…if you don’t want to pay anything to the loan you don’t have to and the mortgage never expires. It is only due to be repaid when you die or move out of your home to go into long term care. If you are in a position to make monthly interest payments you can or you can make payments as and when you feel like it.
The money you receive from a Lifetime Mortgage is tax free and can be used for any purpose.
So, if before you retired you had been looking forward to that round the world cruise you had always wanted to go on or even go touring in a campervan, but on retirement realised funds didn’t allow, a lifetime mortgage will allow you to do that.
But, how do you know a lifetime mortgage is right for you?
By speaking to a fully qualified adviser, one who will fully explain the process and explain if there are any alternative ways for you to raise the money you would like, before you commit. You need an adviser who can look at every equity release lender on the market so that you can be assured you are getting the best mortgage for your needs.
If you would like to, your family can also be present at the meeting, so they understand it as well.
All costs and benefits are explained to you before you commit.
You will also be advised about, ‘Inheritance protection’ and ‘No negative equity guarantee’
So, if reading this has sparked an interest, please give me a call on 01245 806119 and let’s arrange to meet up for a chat.
Equity Release may impact the size of your estate and it could affect your entitlement to current and future means-tested benefits.