Lifetime Mortgage

Equity release lifetime mortgages are designed for home owners who wish to release the equity within their property but to retain full ownership of their property. Unlike a home reversion plan you do not sell your property to the plan provider but arrange a deferred interest lifetime mortgage. 

Key Features of Equity Release Lifetime Mortgages

An equity release lifetime mortgage allows you and or your dependents to benefit from any potential future growth in the value of your home. This means if property prices increase you can apply to release additional equity in your home, or pass on this growth to your dependents.

The amount of equity you can release under an equity release lifetime mortgage will depend upon your age, the value of your property and the underlying interest rate available from the mortgage lender.

Equity release lifetime mortgages are arranged as deferred interest only mortgages and are available on variable and fixed interest rates. A deferred interest only mortgage means you make no interest or capital repayments to the plan provider. The actual level of interest is rolled up and added to the amount of equity released. This total is then repaid to the plan provider when your property is eventually sold.

An equity release lifetime mortgage normally offers you a choice of a one off tax free lump sum or a guaranteed regular monthly income, or a mixture of both. 

Some plan providers offer flexible equity release lifetime mortgages. The plan provider will set a maximum level of equity they are willing to release, and allow you to drawn down lump sums, as and when required, up to this maximum level. A flexible equity release lifetime mortgage means you only accrue interest on the actual level of money advanced to you.

Equity release lifetime mortgages are available from age 55. Most plan providers do not impose an upper age limit, and will release a greater percentage of the value of the house for older applicants. 

All providers who offer an equity release lifetime mortgage and are members of the safe home income plan scheme provide a no negative equity guarantee. This guarantees that regardless of the fluctuations in UK mortgage interest rates, regardless of the amount of interest that is owed and regardless of how long you live you will always be guaranteed ownership of your house until you die.   

Review which providers offer equity release mortgages under the Safe Home Income Plan guarantee.

An equity release lifetime mortgage means you will be responsible for the home buildings and contents insurance on your property. 

Review our equity release service charter only available from our panel of independent equity release specialists.

Other Useful Sites You Can Try For Equity Release Schemes

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