Lifetime mortgages offer homeowners aged 55 and over a flexible way to release equity from their property without moving. Our advisers work with clients across Kent to explain the many features and benefits of lifetime mortgages. We do this by conducting a detailed financial assessment, discussing your current and future financial needs, and explaining how a lifetime mortgage can help you meet these needs. This process allows you to make informed decisions about your financial future.

How does it work?

A lifetime mortgage is a form of equity release scheme whereby a loan is secured against your property, providing you with a tax-free cash lump sum or a regular income to spend as you wish.

Although there are Lifetime mortgages where you pay the interest (and possible capital) as it accrues, commonly Lifetime mortgages are arranged on a roll-up basis, meaning that borrowers will not be required to make payments during the term of the loan, instead the lender adds the interest that accrues to the original loan amount. ‘Roll-up plans’ can be very useful but borrowers must remember that the amount of the mortgage debt can increase quickly due to ‘compounding’ – i.e. you will be charged interest on the original loan and any interest that is added to the loan account.

Interest is added to the lifetime mortgage loan throughout your lifetime, accruing at a fixed or variable rate. The loan plus interest is eventually paid back when the home is sold which could be when you move into long-term care, or when you and your partner die. Subject to your age you can typically release between 18-50% of the value of your home with a lifetime mortgage.

ADVANTAGES

  1. Choose a cash lump sum or regular income, typically with no monthly repayments to meet
  2. You still own your home so all growth in the value (if any, of course) belongs to you
  3. Loans with a 'No negative equity' guarantee are available
  4. Some plans enable you to guarantee an inheritance for your family
  5. Plans can be taken out as young as 55

DISADVANTAGES

  1. Inheritance amount will be reduced
  2. Interest rates may be higher than for normal mortgages due to the long-term nature of the loan.
  3. The amount owed on the loan can mount up quickly as interest is compounded.
  4. Early repayment charges may apply
  5. Tax position and certain state benefits will be affected
  6. You could raise a larger amount with a reversion plan, especially at a younger age

Please note: You can get interest-only lifetime mortgages wherein you pay interest monthly, but lifetime mortgages are mainly offered as 'rolled up' interest. 'Rolled up' interest is paid off altogether in one final payment along with the total amount of your loan when your property is sold, as described above.

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EQUITY RELEASE (INCLUDING LIFETIME MORTGAGES AND HOME REVERSION PLANS) WILL REDUCE THE VALUE OF YOUR ESTATE AND CAN AFFECT YOUR ELIGIBILITY FOR MEANS TESTED BENEFITS.

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A LIFETIME MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION. EQUITY RELEASE WILL REDUCE THE VALUE OF YOUR ESTATE AND MAY AFFECT YOUR ENTITLEMENT TO MEANS TESTED BENEFITS.

Lifetime mortgages can be a complex financial product. Our team of experienced financial advisers can explain the various lifetime mortgage options in detail, assess your circumstances, and ensure you fully understand the implications. Contact us today to learn more.

What were the circumstances that caused you to initially look for an adviser?
For our mortgage application

How has Jenny Whyte helped you?
With the mortgage application and made the entire process so much easier and speedy.

Have you seen the outcome you were hoping for?
Yes we were able to purchase our property within a two month period

What could they have done better?
Nothing as Jenny was excellent and I have since referred her to others

Jenny's reply
Thanks Linda and for recommending me to your friends! I will be in touch soon to discuss your remortgage.

Review from verified client
London - June, 2023

How We Can Help.

See below for the services we offer

Mortgages

Whether you're a first time buyer, looking to remortgage or buy-to-let, we can help.

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07855 767968
 

07855 767968
21 Otteridge Road,
Bearsted,
Maidstone ME14 4JR.

jenny.whyte@roseacremortgages.co.uk