Lifetime mortgages
A lifetime mortgage is a form of equity release scheme where a loan is secured against your property to provide you with a tax free cash lump sum or a regular income to spend as you wish, with no monthly repayments to meet.
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, usually when you move into long term care, or when you and your partner die.
You can typically release between 18-50% of the value of your home with a lifetime mortgage, depending on your age.
Advantages of a lifetime mortgage
· A choice of a cash lump sum or income with no monthly repayments to meet
· You retain full ownership of your home
· Lifetime mortgages are available to younger people (aged 55+)
· No negative equity guarantee
· Some lifetime mortgage plans let you guarantee an inheritance for your family
All equity release plans are regulated by the Financial Services Authority