Lifetime Mortgages are designed for use by the older age groups 55+
Like most other Mortgages they are a loan secured against a property.
They can be used to release equity, if you are already a home owner, or to purchase a property.
Eligibility and the amount to be borrowed are established by the age of the applicant(s) and the value of the property against which the loan will be secured.
An adverse health history may increase the amount available for borrowing
There are no affordability checks. No proof of income required
There are no contractual payments required of either interest or capital.
Voluntary payments may be made either regularly or on an Ad-hoc basis, depending on the Lenders terms and conditions
The mortgage interest rate is usually fixed at outset and remains at that rate for the life of the loan. There is no fixed term for the loan and they are set up for the lifetime of the applicants. These mortgages are designed to be repaid from the proceeds of the property on the death of the applicant(s) or when they go into fulltime care.
These mortgages may be repaid early subject to the lenders terms and conditions and or there may
be a penalty to pay.
It is possible to re-mortgage for a better rate or to increase borrowing. Lifetime Mortgages are highly regulated by the Financial Conduct Authority (FCA) and covered by the Financial Services Compensation Scheme (FSCS)
All Lifetime Mortgages covered by the Equity Release Council carry the following standards
Use of funds is unrestricted and is not taxable. Popular uses are as follows
Getting a Tailored quote is the best way to see how much you can borrow and how much it will cost you.