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Lifetime Mortgage
Release tax-free equity from your home to support your future lifestyle needs.
A lifetime mortgage is a form of equity release scheme whereby a loan is secured against your property, providing you with a tax-free cash lump sum or a regular income to spend as you wish.
Although there are Lifetime mortgages where you pay the interest (and possible capital) as it accrues, commonly Lifetime mortgages are arranged on a roll-up basis, meaning that borrowers will not be required to make payments during the term of the loan, instead the lender adds the interest that accrues to the original loan amount. ‘Roll-up plans’ can be very useful but borrowers must remember that the amount of the mortgage debt can increase quickly due to ‘compounding’ – i.e. you will be charged interest on the original loan and any interest that is added to the loan account.
Interest is added to the lifetime mortgage loan throughout your lifetime, accruing at a fixed or variable rate. The loan plus interest is eventually paid back when the home is sold which could be when you move into long-term care, or when you and your partner die. Subject to your age you can typically release between 18-50% of the value of your home with a lifetime mortgage.
Please note: You can get interest-only lifetime mortgages wherein you pay interest monthly, but lifetime mortgages are mainly offered as 'rolled up' interest. 'Rolled up' interest is paid off altogether in one final payment along with the total amount of your loan when your property is sold, as described above.
EQUITY RELEASE (INCLUDING LIFETIME MORTGAGES AND HOME REVERSION PLANS) WILL REDUCE THE VALUE OF YOUR ESTATE AND CAN AFFECT YOUR ELIGIBILITY FOR MEANS TESTED BENEFITS.
Value | Move | % |
FTSE 100 | ||
8334.97 | -0.84 | -0.01 |
FTSE 250 | ||
20996.18 | -8.971 | -0.043 |
FTSE 350 | ||
4598.99 | -0.61 | -0.013 |
FTSE All Shares | ||
4554.2 | -0.74 | -0.016 |
Dow Jones | ||
45014.04 | 308.508 | 0.69 |
Nasdaq | ||
19735.115 | 254.205 | 1.305 |