The facts about Lifetime Lending for the Over 55’s

First Time Buyer or Experienced Home Owner How a Mortgage Broker can help you.
First Time Buyer or Experienced Home Owner? How a Mortgage Broker can help you.
July 21, 2020
For all Homeowners over the age of 55
For all Homeowners over the age of 55
January 15, 2021
The facts about Lifetime Lending for the Over 55’s

Lifetime Lending over the last few years has become a great help to many people, we are living longer and looking to fit more and more into our senior years. To make the most of your retirement the one thing that can hold you up is money – or the lack of it. Lifestyles are becoming more expensive and pension income for most just is not keeping up with our demands. 

Many people have also found themselves with Interest-only mortgages, that they now need to repay to the bank, many fear that to do this they would need to sell their home, either downsize or move into rented. 

Here are the most common questions and answers to help you understand the benefits and how it could be good for you. 

1, Will I still own my own home? Can I still choose to sell in a few years and move to another property?

You will always retain the ownership of your home and you can sell and move home subject to the new property meeting the lenders requirements.

2, Will I leave debt to for my family and loved ones.

There is a No Negative Equity Guarantee, which means you will never owe more than the value of your home and you will not leave a debt for your family.

3, Can I do a lifetime mortgage if I currently have an outstanding mortgage.

Yes, you can apply for Lifetime mortgage to pay off your current mortgage

4, Can I repay a Lifetime Mortgage?

Some Lenders allow you to pay the interest or make regular optional payments. However, if you prefer you can simply make no monthly payments and add the interest to the loan, this would then allow you to have more disposable cash each month.

5, Can I leave my property as an inheritance for my family?

Your beneficiaries would need to repay the balance of the Lifetime Mortgage from your estate, this can be by either selling the property or from other assets, they can also take out a mortgage themselves to repay the outstanding balance. You can also protect an amount of equity to be passed on to your beneficiaries.

6, Is it unregulated?

Lifetime Mortgages and Equity Release is regulated by the FCA and the Equity Release Council. Our Equity Release Advisers have an additional qualification to pass and they have regular testing to ensure they are up to date with their knowledge and can offer you the absolute best advice.

7, Can I use a Lifetime mortgage to buy a holiday home? A new car? Help the Grandchildren on to the property ladder? Have a new Kitchen? Build an extension? Go on more holidays? Repay My interest only Mortgage? Enhance my lifestyle? 

The Answer to all these questions is YES

8, Can I use a Lifetime mortgage to buy another property?

You can use a lifetime mortgage to buy a property just the same as a regular mortgage, you still have the option to add the interest to the amount borrowed, so as you would not have a monthly commitment, therefore this is not subject to income assessments.

9, Are Lifetime Mortgages & Equity Release expensive?

Over the last few years interest rate for Life Time Mortgages and Equity Release and have become much more competitive, in most cases you would benefit from a fixed rate for the life of the loan, meaning that you can see at any point in time what you would owe, so you wouldn’t have any unexpected surprises. Interest rates are as low as 2.4% fixed for life.

 It is important to seek Whole of Market Advice from a qualified Advisor, who will take time to get to know you, your circumstances and aspirations, we are happy to discuss this with you and your family making sure that no questions go unanswered. We are a local established company looking after local people.

We are Also a Recommended by the Equity Release council

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