Lifetime Mortgages allow eligible individuals to borrow a proportion of their home’s value. Interest is then charged on the amount that has been borrowed but nothing usually has to be paid back until the individual either dies or sells/permanently vacate their home.
Most lifetime mortgages have a fixed rate of interest. There are providers that offer variable rate lifetime mortgages, but these offer less certainty. The interest charged is compounded or ‘rolled up’ over the period of the loan. Unlike conventional mortgages where interest is charged on an amount that decreases with time, interest on lifetime mortgages is charged on an increasing sum, so debt can quickly grow. This occurs because you don’t make any repayments, and so the interest on the loan is added to your debt on a continual basis.
As long as the provider is a member of the Equity Release Council the individual will never have to repay more than the value of the property. The Equity Release Council which is a trade body for providers of this type of scheme guarantee that people who take out the product won’t ever find themselves in a negative equity scenario.
For more information on Lifetime Mortgages
Call the team on 01332 223888 or email us at firstname.lastname@example.org – or why not complete the form below and one of the members of our team will come back to you.
Lifetime Mortgages are generally only available to people aged 55 or over
Lifetime Mortgages may not be suitable for everyone. It may affect your entitlement to state benefits and local authority grants and impact on your taxation situation and will reduce the value of your estate.
To understand the features and risks of Lifetime Mortgages, ask for a personalised illustration.
There will be a fee of £595.00 for advice and arranging a Lifetime Mortgage Plan Simply Financial Advice recommend.
Great British Finance Ltd is authorised and regulated by The Financial Conduct Authority. Great British Finance Ltd is entered on the FCA register (http://www.fca.org.uk/register/) under reference 431032. Registered in England No: 03171349.
Great British Finance, Registered Office: 81 Burton Road, Derby, DE1 1TJ. Trading Address: 19 High Street, Swadlincote, Derbyshire, DE11 8JE.