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What are Lifetime Mortgages?
Lifetime mortgages are specialist mortgages aimed at those over 55 (or in the case of joint applicants, both are over 55), who want to release some of the equity built up in their home.
Under the most common type of Lifetime Mortgage you keep full ownership of your property but obtain a loan, paid either as a lump sum or monthly income (or both) and you make no monthly repayments. Instead you allow the Interest, which is still charged, to be added to the loan so it accumulates over time.
Unlike a conventional mortgage, there is no set repayment date. The loan becomes repayable on the sale of the property when the last applicant dies, moves into long-term care, or simply gives up owning a home whichever is the earlier. At this time both the capital and the interest is paid by your executor, Personal Representative or your family from the sale proceeds of the house, and they still receive any difference between the sale price and the amount required to repay the loan.
Learn more about the different types of Lifetime mortgages.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration
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