Helping Homeowners Understand Lifetime Mortgages

Aged 55 or over and considering equity release?

Understanding how a lifetime mortgage works is an important first step.

Maintain 100% ownership with a lifetime mortgage and continue living in your home.

I'll answer your questions, explain your options and help you understand whether a lifetime mortgage may be suitable for your circumstances

Equity Release Adviser Lyn Palmer

FPC, CeMAP, CeRER

Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding for long-term care. We advise on lifetime mortgages only.

Equity release requires paying off any existing mortgage. Any money released, plus accrued interest would be repaid upon death, or moving into long-term care.

Advice is required to proceed with equity release and there may be other options which better suit your circumstances.

Common Uses for Equity Release

Home Improvements

Some homeowners use a lifetime mortgage to renovate, improve or adapt their home, helping them remain comfortable in familiar surroundings.

Repaying Existing Credit Cards, Loans or Mortgages

Some homeowners use a lifetime mortgage to repay existing borrowing.

If you currently have a mortgage on your home, it must be repaid as part of the lifetime mortgage application.

Some or all the money released can be used to repay the existing mortgage, with any remaining funds available to be used for your other objectives

Helping Family Financially

Some homeowners choose to use funds released from their property to provide financial support to family members.

Travel, Leisure and Lifestyle

Some homeowners use a lifetime mortgage to fund travel, hobbies or other lifestyle choices.

Supplementing Income

Some homeowners use a lifetime mortgage to provide additional funds during retirement.

What is Equity Release?

Looking for more information? You can find answers to many common questions in my Frequently Asked Questions section.

You continue to own and live in your own home

With a lifetime mortgage, you continue to own 100% of your home and can remain living there for the rest of your life, until you die or move into long-term care.

Equity release can be seen as an alternative to downsizing. You can release funds whilst continuing to live in your current home, ensuring you can enjoy the comfort and familiarity of your own surroundings.

Find out more about how lifetime mortgages work in my Frequently Asked Questions section.

You don’t have to make any monthly repayments

One of the features of a lifetime mortgage is that you don’t have to make any required monthly repayments.

You can choose whether or not to make repayments.

If you do not make payments, the interest will be added to the outstanding balance and the amount owed will increase over time.

You won't need to repay the loan or the interest until your home is sold when you die or move out permanently into residential care.

You can choose to make payments

Although repayments aren't required, you can choose to make them if you want to.

You're in control when it comes to your debt.

You can choose to pay some or all the interest charged each year.

If you pay all the interest each year, the initial debt will not increase. If you pay some of the interest, this will slow down the roll-up of interest.

You may also be able to reduce the amount owed by making repayments towards the capital borrowed.

Payments are subject to certain limits; early repayment charges may apply above a set value

You’ll never owe more than the value of your home

Lifetime mortgages provided by members of the Equity Release Council offer a ‘no negative equity guarantee’. Ensuring your estate will never owe more than the property is worth when it is sold.

You can access funds over time

Options include taking a lump sum or a drawdown lifetime mortgage, which allows you to release an initial amount and access further funds in the future.

Interest is only charged on funds once they have been withdrawn.

Any future withdrawals will be subject to the interest rate available at the time.

Is a Lifetime Mortgage Right for Everyone?

A lifetime mortgage can be a useful solution for some homeowners, but it won't be suitable for everyone.

Exploring the alternatives can help you understand which option may be most appropriate for your circumstances.

Call me to see if Equity Release is right for you