A lifetime mortgage is a loan secured against your home. It will run for the lifetime of you and your partner, or until the remaining partner leaves the property to go into long-term care. Minimum age and property values apply.
No, there are no monthly payments (however you can choose to pay the interest with some providers). You will continue to own your own home, and the loan and interest are repaid by the sale of the property when you die or go into long-term care. Interest builds up throughout the life of the mortgage and is charged on the total amount borrowed and the interest already added. This increases the amount you owe and will reduce the value you have in your property, possible to nothing.
Most of the providers we recommend have a ‘no negative equity’ guarantee – this means that neither you nor your estate will have to pay back more than your home is sold for, as long as this is for the best price reasonably obtainable.
Yes, although releasing equity from your home will always reduce the amount of inheritance you can leave.
Yes, the Equity Release mortgage does not prevent you from moving as long as your new home meets the original terms and lending criteria at the time.
You should be aware that releasing equity from your home could affect your tax position and eligibility for welfare benefits. If you choose to end the plan early you will have to repay the loan and interest, and there may be substantial early repayment charges.
THIS IS A LIFETIME MORTGAGE TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION