A lifetime mortgage allows you to release a lump sum from the Value of your property this can be in the form of a single lump sum or ad-hoc drawdowns of smaller lump sums. Interest is only charged on the amounts actually released to you. There are no regular repayments to make as the amount, is repaid when the property is sold or you permanently vacate the property, (or the last of you to leave if there are joint borrowers)
A recent variation on this type of mortgage allows borrowers to meet some or all of the monthly interest payments, this can reduce the potential growth of the initial advances.
Remember – a lifetime mortgage will reduce the amount of inheritance you will be able to leave, and it could affect both the tax you pay and any welfare benefits you receive – so there’s a lot to think about.
A lifetime mortgage is a loan secured against your home, to understand the features and risks, ask for a personalised illustration.
