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Lifetime Mortgages (Equity Release for the Over 60's)
To understand the features and risks, ask for a personalised
illustration.
Unlock some of the equity in your home
The Lifetime Mortgage
is a special kind of loan for homeowners aged sixty and over.
Although it’s secured on your property, there are no monthly
payments to make and it is designed to help you remain in your
home for as long as you wish.
A Lifetime Mortgage
allows you to benefit from the financial investment you’ve made in
your house with absolutely no worries of having to give it up.
Interest will be added to your loan and the full amount is paid
back when your home is eventually sold following your death (or
the death of the second borrower if it is a joint application) or
if you move into long-term care or sheltered accommodation.
How they work: Lifetime mortgages
A
lifetime mortgage gives you a cash lump sum now, or regular income
for the rest of your life. You take out a loan secured against
your property. Interest is charged on this loan, but it 'rolls up'
- that means it is accumulated over time, and is not repaid until
the house is sold when you die or move into long-term care.
The amount you can borrow depends on your age, and the value of
your property. A lifetime mortgage is a long-term commitment, and
if you change your mind you will have to pay an early repayment
charge, which could run to thousands of pounds. So it is important
that you know exactly what you're doing before you sign on the
dotted line.
And bear in mind that, if you receive
means-tested benefits, for example, the cash injection you get
from a lifetime mortgage could render you ineligible.
As a result, most lifetime mortgage providers recommend that you
take legal advice before proceeding, and also that you seek
independent financial advice. Also using equity release will have
a major impact on your estate, so it can make sense to discuss the
matter with your family before going ahead. How
Much Can You Borrow with a Lifetime Mortgage?
• The amount offered by different Equity Release providers varies
depending on your age (or youngest age if joint) and the amount of
interest charged • Typically schemes offer between 15% - 35%
of the value of the home at age 60 or under going as high as
50%-60% if the person is over 70-75 • Built into most schemes
is the potential ability to receive further payment as you get
older.
TO UNDERSTAND THE FEATURES AND RISKS ASK FOR A PERSONALISED
ILLUSTRATION. AN EQUITY RELEASE PLAN WILL REDUCE THE VALUE OF
YOUR ESTATE, WILL NOT BE SUITABLE FOR EVERYONE AND MAY AFFECT
YOUR ENTITLEMENT TO STATE BENEFIT |
Lifetime Mortgages 
