Lifetime mortgage: is a type of equity release which works by securing a loan against your home. The loan secured, only needs to be paid back once you pass away or move into long term care. This is a fantastic option for people over 55 years of age as there is no monthly payments to meet, and you can utilise the tax-free money as you wish. If you decide to opt for a lifetime mortgage, you also get a ‘No Negative Equity Guarantee’, which ensures that the final repayments will never exceed the value of your property.
You can usually release 18%-54.2% of the built up value of your house, depending on your age, health, property value and location.
Under lifetime mortgage, there are a wide variety of different types which are mentioned in detail below
Enhanced Lifetime Mortgages: In certain cases you might be able to release more money from your home than a regular lifetime mortgage plan. If you suffer from health related problems (valve replacements, angina, heart attacks), Cancer (past or current), Parkinsons, diabetes, high blood pressure or if you are a smoker, equity release might qualify you for an enhanced plan.
Protected Lifetime Mortgages: with a protected lifetime mortgage plan, it is possible to guarantee you leave behind something for your family and your loved ones.
Interest Payment Lifetime Mortgages: With interest payment lifetime mortgages, you are able to make regular payments on the interest that accrues over the lifetime of the loan. Each pound you pay off part, some or all of the interest. This will keep the capital amount static at the end of the plan. If you are able to fund all of the interest, we can also look at other options for you, like a RIO (Retirement Interest Only) mortgage.
Drawdown lifetime mortgage: works in the same way as a lifetime mortgage but with more flexibility. With a drawdown lifetime mortgage you can stop being afraid of unforeseen expenditure in-case you or your loved ones fall ill. You’re given a choice of when and how much you want to take out at a time. The advantage of this option is that interest is only applied to the money you have taken. This will dramatically reduce the overall cost and help you avoid falling into debt.
Hoskin Equity Release Lifetime Mortgages are based in Maldon, Essex and arranges face to face home visits across Essex, Kent, London, Sussex, Herts, Oxford, Beds, Bucks, Cambridge & Northants.
The best way to get in touch is to telephone our Equity Release Specialists is on the number below or send a message by using the contact form to the left.