What is a lifetime mortgage?
A lifetime mortgage is a way of releasing money from your home without having to move. It’s a loan that’s secured against your home to give you a tax-free cash sum or smaller amounts that you can take as and when you need.
With a lifetime mortgage you won’t have to make any monthly payments. Instead the interest is added to the amount you owe each month and interest is charged on the loan in addition to any interest already added.
How is it repaid?
The lifetime mortgage is usually repaid from the sale of your home when you, or the remaining applicant (if the mortgage is in joint names) dies or moves out of the home into long term care. Any money left over would be available to you or your beneficiaries.
Is this right for me?
To consider a lifetime mortgage you must speak to an adviser authorised by the Financial Conduct Authority, like us.
If you are 55 or over, living in your own home with a small mortgage, or no mortgage this may be an option for you.
If you would like to discuss this, or any other financial matters, contact us on 01905 779697 and speak to our dedicated Mortgage and Protection team.
Remember, a lifetime mortgage will reduce the amount of inheritance you will be able to leave and could affect both the tax you pay and any welfare benefits you receive.