Equity release is a scheme which opens up access to your property’s value, so that you can release money for your retirement. If you’re facing financial shortfalls, for instance, you can make the most of the wealth you’ve accumulated in your property without having to move house. Opting to do this is a lifetime commitment.
What are Lifetime Mortgages?
Lifetime mortgages are a product of the equity release scheme. In essence, it’s a long-term loan which is secured against your property. It’s comparable to a typical mortgage, although you are not required to make repayments. Instead, the loan and accumulated interest is paid in full from the sale of your property, when you move in to long-term care or become deceased.
How much interest will you pay on a Lifetime Mortgage?
Our lifetime mortgage interest rates vary according to individual circumstances. Naturally, because you don’t make repayments during the term of your loan, a higher interest rate is applied, compared to a standard mortgage. The interest amount depends on how much you borrow, your property and the outcome of a financial assessment.
How do you know if you’re eligible for a Lifetime Mortgage?
If you’re a UK homeowner aged 55 or above, you should be eligible. However, the amount you can release varies dependent of your age, your property value, health and lifestyle choices. Our criteria asses each individual circumstance accordingly and then a decision is made.
Does your property qualify for a Lifetime Mortgage?
As long as your property is a residential property which meets the standard construction regulations for England, Wales, Scotland or Northern Ireland, it should be fine. If your property is unique and you are unsure if it qualifies, please contact us for further information.
How much equity can you release on a Lifetime Mortgage?
The amount of equity available to you will depend on a number of factors: the value of your property, your age and when you take out the plan. For a more accurate representation, please use our equity release calculator.
What are Home Reversion Plan mortgages?
Unlike Lifetime Mortgages, Home Reversion Plan mortgages require you to give up a percentage of your home in order to release equity - be it as a lump sum or regular instalments.
What is a 'No Negative Equity Guarantee'?
A No Negative Equity Guarantee prevents you from ever owing more than your home is worth, when taking out a Lifetime Mortgage.