Lifetime mortgages are a type of mortgage loan that is designed for people aged 60 or over who own their own homes. Lifetime mortgages make up a relatively small segment of the mortgage market, but are incredibly useful for those older people who are asset rich and cash poor.
What does a lifetime mortgage do?
Lifetime mortgages help the borrower to free up part of the value of their home, much like an equity release scheme or a home reversion plan. That way, older people who have no money can release capital from the equity stored up in their homes. Lifetime Mortgages do not risk the house, and can even be accomplished without the need for any repayments to be made.
How should I go about getting a lifetime mortgage?
For more information about lifetime mortgages and to get a lifetime mortgage quote, use our Lifetime Mortgage Enquiry Form and one of our experts will contact you.
How do lifetime mortgages differ from equity release?
Lifetime mortgages are a special type of mortgage loan that is secured on the property, but does not require monthly payments. Interest is added to the amount of the loan, and is paid in full when the house is sold upon your death, or the death of the second borrower if it is a joint lifetime mortgage, or if you move out into long-term care or a sheltered home.
What happens if I move home during the term of my mortgage?
Depending on the type of lifetime mortgage, this is generally not a problem.
Do lifetime mortgages suit everyone?
No, for some people lifetime mortgages are not suitable at all, and selling your property and moving to a less expensive one may be the more suitable options. This depends on your individual circumstances.