Find out how much money you can release from your home.
This product is approved for homeowners aged 55 and over who wish to access some of the wealth they have tied up in their home to spend as they wish, without losing ownership or moving out. The money released is tax free and no monthly repayments are required.
The lifetime mortgage and any interest due is usually repaid from the sale of the property at the end of your life or when you move into permanent residential care.
Getting approved for a lifetime mortgage is generally more straight forward than taking out a traditional repayment mortgage. Being approved is primarily subject to you being able to answer `Yes` to the following questions :
- Are You Aged Between 55 And 90?
- Is Your Property Worth More Than £70,000?
- Do You Own Your Own Home? (With Or Without A Mortgage Is Fine)
- Looking To Borrow Between £10,000 & £500,000?
- Do You Currently Live In England, Wales, Scotland Or N. Ireland?
If you can answer `yes` to these questions the next step is to find out your options without any obligation or pressure whatsoever.
To get the facts and figures via a confidential free quotation please call our UK adviser team for free on 0800 0159 295 or dial 0330 0536001 (mobile friendly) alternatively complete our short online enquiry form and we will contact you at your convenience.
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Lifetime Mortgages allow you to free up some of the wealth tied up in your home whilst you continue to own it and live there. You do not need to make any monthly repayments. Your money can be taken as one larger lump sum up front or you can draw down smaller amounts as and when you want to.
The Mortgage is secured on your property. It is repaid when the last applicant dies or move into long term residential care. At this point the home is sold and the loan plus any interest due are repaid. The remaining proceeds from the sale go into your estate. If you opted to pay the interest and then capital back you can repay the balance in full. The easiest way to find out your options through us is to speak to our UK advisers on 0800 0159 295
The funds can be used for virtually any legal purpose. In reality most customers use the funds to achieve a number of different goals. Some common examples are listed below:
Additional tax free income to improve lifestyle.
Carry out renovations or improvements to the home.
Clear an existing interest only mortgage on the property.
Help family members pay for a wedding or university fees.
Assist children or grandchildren with a deposit for a home.
Make a major purchase such as; a new car, a caravan or a luxury holiday.
To consolidate burgeoning debts such as credit cards and loans.
Neither of these circumstances will prevent you from being accepted. Lenders are primarily concerned with the current condition of your home and the amount of equity you have in it. We also have lenders and plans who will accept you even with adverse credit. Please call our support team on 0800 0159 295 to answer any questions you may have.
Small Income - As repayments are not required your current level of income is not usually an issue. In fact one of the most common reasons for utilising a lifetime mortgage is to increase your income.
Adverse Credit - If you choose a plan that does not require you to make any regular repayments, then your credit history is unlikely to impact on you being approved for the loan.
Poor Health - As we get older many of us will, unfortunately, have health issues. In terms of a lifetime mortgage plans, being in poor health would not prevent you taking out the loan, in fact we have enhanced plans for people who are in, or have been in, poor health.
There are primarily 3 variations to the lifetime mortgage product range.
1. Interest Roll-Up - make no monthly payments at all. The interest charged is rolled up into the loan, with the original loan plus accrued interest repaid when the borrower(s) moves property or the last remaining borrower goes into residential care, or dies.
2. Interest Only - the borrower makes regular monthly interest only payments, to reduce the level of interest being rolled up. The loan is only repaid when the borrowers(s) moves property, last remaining borrower goes into residential care, or dies.
3. Optional Payments - the borrower can choose to pay some, or all, of the monthly interest, but you can also stop making monthly payments at any time. The loan is repaid in the same way as in options 1 and 2.
In addition there are other elements that can be arranged at the beginning of the plan for example:
Guaranteed equity to be left for the estate,
Enhanced loan to value due to ill health,
Portability options (being able to move the plan to another property when certain criteria is met).
Positives / Benefits
Negatives / Risks
Cash when you need it: you can release money from your home tax free and use it to increase your income into retirement. You can choose to release the full amount At the outset or you may be able to take smaller initial amounts with the option to release more money at a later date. This is known as a drawdown facility.
if you choose to roll up the interest it is added to the amount you owe and increases over time: which means interest is charged both on the original loan amount and the interest that has already been added. This will reduce the equity left in your home and the value of any unprotected inheritance.
You can stay in your own home: you don’t need to leave your home and you’ll still own your property
How you spend or use the money may affect your taxation and benefits: taking a lifetime mortgage could affect your eligibility for state benefits.
Your monthly payments will not increase: as the interest rate is fixed for life, if you choose to make monthly repayments these will not increase. This means you will always know what you are paying.
There may be cheaper ways for you to borrow money: the interest rate on your current mortgage, if you have one, maybe lower than an interest rate for a lifetime mortgage and there may be early repayment charges.
It may still be possible to leave an inheritance: if you take out inheritance protection, you can protect a proportion of your home`s value for your beneficiaries.
Moving house may be difficult: This is a long term plan based on your home. If you wish to move elsewhere there will be significant cost implications in addition to the normal moving costs.
Yes. Any customer seeking a loan expects to be treated confidentially and with respect. We will only share your information with relevant parties, such as lenders required to complete the funding of your loan and only with your consent.
Lifetime mortgages are a long term financial agreement. They are aimed at people who want to stay in their home and release money from it. You may be able to move but this will usually incur significant early repayment charges. If you intend to move in the future then this is probably not the right product for you.
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