Lifetime Mortgages

Lifetime Mortgages are currently the most popular type of equity release scheme. The information below is an overview including the advantages and disadvantages.


The different types of lifetime mortgages are illustrated opposite and give you an insight into the options available within this product range.



Summary

These plans enable you to raise a lump sum at a fixed interest rate, which is then added to the loan. They are also known as ‘roll-up’ schemes.

You have no monthly payments to make & there is the security of the 100% ownership of your home.
 You have the right to remain in the property for the rest of your lives and the plan is repaid when the property is sold, which usually occurs when you die or enter long term care.

Advantages

• Plans are available from age 55 to age 95
• You will benefit fully from any future increase in property value
• Option of fixed interest rates for the lifetime of the plan
• Flexibility of borrowing additional funds in the future
• Optional guarantees to protect a portion of your estate for your family

Disadvantages

• The Lifetime Mortgage balance will compound over time
• Your tax position and eligibility for means-tested benefits may be affected
• A lifetime mortgage usually cannot raise as much as a reversion plan
• Early repayment charges may apply
• Your beneficiaries may receive a reduced inheritance

This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.