A lifetime mortgage can enable you to access tax free cash without having to make any repayments during your lifetime. This can be taken out as a lump sum, a series of regular payments, or a combination of the two. You can also increase the amount you borrow over time until you reach the agreed maximum limit. Interest will roll up over this period, and though there’s no obligation to make monthly payments, you can choose to do so to keep this under control.
When you die or move into residential care, the loan will typically be repaid via the sale of your house. If you’re married, the loan won’t have to be repaid until the last remaining person in the home dies or moves into care. The amount you can borrow is typically between 20% and 45% of the value of your home, though this will depend on your age and the specific product you go for.
Many people considering lifetime mortgages are concerned about the implications for their estate. Whilst the value will inevitably fall, it is possible to protect some of the equity as inheritance. If you’re at all concerned, don’t hesitate to give our friendly team a call – we’ll provide you with all the advice you need to come to an informed decision.