Lifetime Mortgages
Lifetime Mortgages are the most popular type of equity release. They are a way of taking out cash from the value of your home, if you’re aged 55 or over, without having to move.
It’s a long-term loan that’s eventually repaid using your home once you pass away, or if you need to go into long-term care. Until then, you’ll remain a homeowner and won’t need to move out.
You can receive either a one-off lump sum payment or a lump sum, with a cash reserve to draw from in the future.
You are not obliged to make any monthly repayments, however you can if you wish.
What do people use them for?
Some typical reasons for taking out equity release might be to:
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Adapt your home, so you can continue to live independently
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Renovate or refurnish parts of your home
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Top up your retirement income
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Pay one-off private medical bills, or receive ongoing care at home
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Help children and grandchildren with house deposits, weddings or other major events
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Manage your estate, wealth and tax planning, and leave a living inheritance
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Pay off an outstanding mortgage, including the shortfall on an interest-only mortgage
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Fund leisure interests, a new car, a holiday, or visiting relatives abroad