Life Time Mortgages
Life Time Mortgages allow you to unlock the cash from your home and enjoy a richer retirement.
A Lifetime mortgage involves taking a type of mortgage which does not require monthly repayments, although with some plans rather than roll up the interest you can opt to make monthly repayments if you wish. You retain ownership of your home and interest on the loan is rolled up (compounded).
The loan and the rolled up interest is repaid by your estate when you either die or move into long term care. If you are part of a couple and the mortgage is joint, the repayment is not made until the last remaining person jointly on the mortgage living in the home either dies or moves into care, meaning that both you and your partner are free to live in your home for the rest of your lives.
If you take out a Lifetime Mortgage, you can choose to receive your funds in a lump sum or in smaller, regular amounts. There is also an option available to increase the amount you have borrowed as and when you want to, up to the maximum limit agreed with the plan provider.
You can also elect to protect some of the value of your property as an inheritance for your family, meaning that you can benefit from releasing equity while still retaining something to pass on to your children. Some people may be able to release larger lump sums due to impaired health or may prefer to make monthly repayment in part, or in full, with an option to roll up at a later date if the monthly repayments became unaffordable.
Got more questions about Lifetime Mortgages? Call our helpline Free on 0800 035 2989
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