Lifetime Mortgages
Lifetime mortgages explained
A lifetime mortgage is in effect a loan secured on your home. As with all financial products there are different types of lifetime mortgage. It is therefore advisable to seek assistance from an independent financial adviser to help you decide if a lifetime mortgage is suitable for you. Our independent financial advisers can describe exactly how a lifetime mortgage may be able to provide a range of benefits. To find out more, please >contact us.
Types of lifetime mortgage
The differing types of lifetime mortgage provide different benefits and all should be considered carefully. As a brief overview, there are three main types:
- Roll-up lifetime mortgage
- Fixed repayment lifetime mortgage
- Interest only lifetime mortgage
- Home income plan lifetime mortgage
Roll-up lifetime mortgage
With a roll-up lifetime mortgage you receive a lump sum or regular income and are charged a monthly or yearly interest which is added to the loan. The borrowings along with the interest are repaid when your home is eventually sold.
Fixed repayment lifetime mortgage
With this mortgage you will receive a lump sum and do not have to pay interest on this sum. When your home is eventually sold the lender receives a payment which is higher than the original amount borrowed.
Interest only lifetime mortgage
Again, with this type of lifetime mortgage you receive a lump sum. However with this product, a monthly payment of the interest on the loan is paid. The amount originally borrowed is repaid once your home is sold.
Home income plan lifetime mortgage
With this type of lifetime mortgage the money that is borrowed provides you with a fixed monthly income for life. The income is utilised to fund the interest payments on the loan and the original amount borrowed is repaid when the home is eventually sold.
Lifetime mortgage advice
The Financial Services Authority suggests that before you consider taking out a lifetime mortgage you consult an independent financial adviser. Our in-house, fully independent financial advisers have a great deal of experience of this product and can advise if this is the best option for you. If you are interested in finding out more about lifetime mortgages, please contact us by >clicking here.
The benefits of lifetime mortgages
Lifetime mortgages can provide a range of benefits. Depending on the plan, the funds received can be as a lump sum or regular income. This can be used to supplement income, help other family members or pay for care costs. In addition lifetime mortgages are also used in inheritance tax planning. To find out more about lifetime mortgages contact us by >clicking here.
Free lifetime mortgage consultation
Our financial advisers will discuss every element of lifetime mortgages to allow you to come to a decision as to whether a scheme is right for you. To arrange your free consultation please >click here.