What is Later Life Mortgages
Here you are at our lifetime mortgages page. We know you are here to find out more and our goal is to help you through the minefield that is later life lending. We know you have goals to achieve, whether it is raising funds for home improvement, helping the family, or you still have payments to make on your mortgage, we are here to advise you on the best solution for you.
We are always asked about age restrictions and all our lifetime mortgages start at 55 and there is no upward age limit. In addition, there are no health or qualifying checks, but the better your health, you could be offered a more competitive solution.
Not sure what solution to go for, we can advise about interest only lifetime mortgages (retirement/pensioner mortgage), Roll-Up Lifetime Mortgage/RIO Mortgage and Home Reversion Plans.
Already have a lifetime mortgage, but not happy? Why not call us to find out how we can change your mortgage provider for you. Whatever your situation, why not contact us for a free, no-obligation meeting or call to discover if a lifetime mortgage could be right for you.
Main Types of Mortgage
STARTING OFF AS AN INTEREST ONLY MORTGAGE WITH AN OPTION TO STOP PAYMENTS COULD BE AN IDEAL SOLUTION FOR MANY PEOPLE.
First type
If you can afford to maintain your current monthly payments on an Interest Only basis, but are unable to get a high street mortgage due to your age or income then this may be for you.
Benefits – You remain 100% owners of your home. You can choose how much you want to pay and for how long without putting your property at risk. If you pay the full amount of interest each month, the amount you owe against the property will never increase.
If your circumstances change and the interest payments become unaffordable, they can be stopped at any time.
The interest rate when you take out the plan is fixed for the rest of your life. This means that your payments will never increase.
With this type of plan you can even choose to have more money available for releasing in the future, this is known as a draw down or reserve plan.
Click here to view our case studies
SeconD type
You can take an initial amount of money and create your self a reserve to use at any point in the future, or take a bigger lump sum now.
Benefits – You remain 100% owners of your home. There is no need to make any monthly payments at all. Instead, interest ‘rolls-up’ and only needs to be repaid when you have both died or gone into long term care.
You can even set up a facility to take out more cash as and when you wish in the future, this is known as a reserve.
You can guarantee an inheritance is left behind from the property if you wish and your mortgage will never exceed the value of your property as this is protected under the ‘no negative equity guarantee’.
Third Type
You give up the ownership rights of the property, but are guaranteed to live in your property for the rest of your life. You can give up part of the property or all of it depending on your circumstances.
Benefits – This will allow you to draw on a lump sum. It can also guarantee a % of the property is left to estate.
Disadvantages – It is very expensive if you ever wish to buy back your property. You are not the beneficial owner of the property. The money received for the % of property sold is not directly related to the market value.
WE CONSIDER HOME REVERSION TO BE A DRASTIC COURSE OF ACTION AND POOR VALUE FOR MONEY IN MOST CIRCUMSTANCES SO WE DO NOT ADVISE ON SUCH PRODUCTS.
Fourth Type
RIO mortgages are effectively standard home loan deals with one key difference: the mortgage does not have a set end date and carries on until “a specified life event” is triggered – ie, the borrower’s death or the date they move into a care home. Until then, they continue to pay the interest each month and the loan is ultimately repaid from the sale of their property.
This seems great, but we are finding in reality that at this moment in time the number of people that actually get accepted for these mortgages is actually very low.
Our mission is to provide you with an equity release service that puts you first.
COTATION
2023-01-05 14:00 (INTERNATIONAL TIME)
