UK MORTGAGE CENTRE
What is a Lifetime Mortgage?
August 25, 2021
Many of us have heard a family member, perhaps your dear grandmother, daydreaming about embarking on that dream world cruise for the last half-decade. Or maybe, you’re the one who’s been yearning for that adventure. Well, what if we told you there’s a solution to turn that dream into a reality? For homeowners aged 55 and over, a world of possibilities awaits with Lifetime Mortgages, a form of equity release.
What Is A Lifetime Mortgage?
A Lifetime Mortgage, part of the equity release family, allows you to access the equity tied up in your property based on its value and your age. This financial solution doesn’t require immediate repayments and is typically settled when you pass away or move into long-term care. Unlike traditional mortgages, a Lifetime Mortgage’s eligibility primarily depends on age rather than personal income. So, if you’re looking to live in a mortgage-free home without a substantial pension income, a Lifetime Mortgage could be the key to unlocking your financial freedom.
Imagine what you could achieve with the equity released through a Lifetime Mortgage. Whether it’s that world cruise or any other financial goal, the choice is yours.
Here are some examples of how you can make the most of your funds:
- Assisting your children in purchasing their first home.
- Enhancing and renovating your property.
- Supplementing your pension income.
The flexibility of a Lifetime Mortgage extends to how you receive the funds. You can opt for a lump sum payment or set up a drawdown facility, which allows you to pay interest only on the money you withdraw.
Is a Lifetime Mortgage the Right Choice for You?
Lifetime Mortgages are designed to offer complete flexibility as you transition into retirement. With various options available, tailored to your specific needs and circumstances, it’s essential to thoroughly understand each contract. Consider which option aligns with your goals and assess the guarantees associated with your existing mortgage. Additionally, be mindful of how it might impact your tax payments.
If you require guidance on navigating the intricacies of a Lifetime Mortgage contract or have questions about your mortgage options, please don’t hesitate to reach out to us at 01925 573328. Our team is here to provide expert advice and assist you in making informed financial decisions.
Disclaimer: It’s important to note that since a mortgage is secured against your home, failure to meet mortgage repayments could lead to the repossession of your property.