Important considerations to be aware of
- A lifetime mortgage charges interest on the total amount of the loan including the interest that has already accumulated, so the amount owed will quickly increase.
Taking a cash lump sum and the costs involved will reduce the value you have in your home and the amount of inheritance you are able to leave.
- Although the amount of inheritance you can leave will always be reduced by equity release, some companies offer an inheritance guarantee to ensure you can leave something for your loved ones.However, this will reduce the amount of money you can borrow and may affect the interest rate applied.
- If you have an existing mortgage on your home, you would have to use the money you release to pay off the existing mortgage first, you would then be free to spend the remainder as you wish.
- You don’t have to pay tax on the amount you borrow, but it may affect your tax position and entitlement to means tested benefits.
- A lifetime mortgage is a long term commitment – it can be expensive if you decide to repay the loan early and you may have to pay a substantial early repayment charge.
- Please note that lifetime mortgages are not suitable for the following property types; freehold flats or maisonettes, studio or basement flats, flats or maisonettes in a local authority or housing authority block of more than four storeys, mobile homes or houseboats, farms or small holdings being used for agriculture purposes, hotels, guest houses or B&B’s.
- Minimum age and property values apply.
This is a Lifetime Mortgage. To understand the features and risks, ask for a personalised illustration.
For more information or to discuss further please contact:
Tel number: 01708 640855
Authorised and regulated by the Financial Conduct Authority