By taking out a lifetime mortgage, you’ll retain full ownership of your home and have the freedom to continue living in it for as long as you wish, subject to the lenders terms and conditions of your chosen plan.
No. All plans that meet the Equity Release Council’s standards come with the no negative equity guarantee, meaning you’ll never owe more than your home’s worth.
Yes. All plans that meet the Equity Release Council’s standards allow you to transfer your plan to a new home (subject to lender criteria).
Yes, you can. Lifetime mortgages are designed with that in mind because lenders do not want their clients to go into negative equity. But for peace of mind, some Lifetime Mortgages allow you to guarantee a set percentage of your home’s value, at the time your plan ends, which will form part of your estate for you to pass on to others in your will.
Yes, however, you’ll need to repay the mortgage using the money released. Any leftover funds are yours to enjoy tax free.
All payments are voluntary. Most lenders will allow you to make regular or ad hoc payments. However if you do not wish to make any payments the outstanding interest will be added to the loan.
A Lifetime Mortgage is a loan secured against your home which, along with the rolled-up interest, is typically paid back when your plan comes to an end. That’s usually when you, or the last remaining applicant, either passes away or enters long-term care. However many lenders have options to repay the loan early some with and some without penalty.
Are you concerned that you won’t be getting good value for money? You sometimes hear equity release referred to as a ‘scam’, or a ‘rip-off’, when in reality in reality it is a highly regulated area of financial services. The Financial Conduct Authority and the Financial Services Compensation Scheme are just two organisations which protect equity release customers.
Getting a Tailored quote is the best way to see how much you can borrow and how much it will cost you.