A lifetime mortgage is available to applicants aged 55+ and allows you to borrow funds on a lifetime basis i.e. you do not have to repay the loan until either the eventual death of the second of you or if both of you have moved into long term care.
Which is the best type of lifetime mortgage for you?
Interest Only Lifetime Mortgages
With this type of scheme, you can pay the interest monthly in the same way as you would with a normal bank or building society interest only mortgage.
The main difference being that there is no end date to the mortgage, and the interest rate is fixed for life. You can choose to stop making monthly payments at any stage but would still retain the right to make optional penalty free payments in the future.
Lifetime Mortgages Paying Part of The Interest
If you don't wish to or cannot afford to pay the full interest on a lifetime mortgage, then the solution could be to pay part of the interest with the balance added to the loan.
This would mean that the amount owed would increase year on year but at a much slower rate than if you were making no payments.
Competitive rates available which are fixed for life.
Partial payments can be any amount between £25 per month and the full interest.
Roll Up Lifetime Mortgages
If you would prefer not to make any payments, then you can choose to have all interest added to the loan.
This would mean that the amount owed would increase year on year with the equity in the property potentially reducing.
You would however still retain ownership of the property benefiting from any increase in property prices and would never owe more than the value of the property. You would also retain the right to make ad hoc penalty free payments at any time.
Some Facts About Lifetime Mortgages You May Not Be Aware Of: -
Available even if you have a poor credit history.
You can borrow funds for any purpose such as home improvements or simply to enjoy life.
Schemes available with no early redemption penalties after eight years.
Funds can be made available on a draw down basis.
No proof of income required.
Borrowing available up to 55% of the property value (dependent on age).
Can be used to purchase a property or used to release equity from an existing property.
Available on age restricted properties.
To discuss your personal situation in more detail or to obtain a written illustration with no obligation, please call us
This is a lifetime mortgage. To understand the features and risks ask for your personalised illustration.