Life Time Mortgages
As the name suggests, these are mortgage type Equity Release schemes where you mortgage your property to release a cash lump sum. However, in this case, unlike normal mortgages you do not need to make any monthly repayments but can allow the interest to accumulate.
As with reversion type Equity Release schemes, these allow you to take a cash lump sum, but in this case ownership of the property remains yours. This type of Equity Release scheme is more popular than a reversion type Equity Release scheme as most people prefer the idea that they may be able to pass on some of the value of their house to their family when they die.
In general terms, homeowners can release between 15% and 50% of the value of their property dependent on their age and the Equity Release scheme. The older you are the more you are likely to be able to release money through an Equity Release scheme either as an initial lump sum or as a draw down where you can take smaller amounts as and when you need them. Drawdown type Equity Release lifetime mortgage schemes are particularly attractive as you only pay interest on the amount drawn down and thus the debt builds up at a slower rate than a traditional Lifetime Mortgage Equity Release scheme.
A number of Equity Release providers also give you the option to protect a proportion of your properties value so that you could pass on some of its value to your loved ones when you die. There is also the possibility to release a larger sum of money through your Equity Release scheme if you suffer or have suffered certain illnesses in the past. Not all Equity Release providers offer this option but it can be beneficial for those looking to raise the maximum amount possible.
To understand the features and risks, ask for a personalised illustration
Our minimum charge for our equity release services is £500 payable upfront and is non-refundable when you apply for either a lifetime mortgage or home reversion plan. The total cost for the advice is a minimum of £2,500.00 which is made up of the £500.00 and any procuration fee received from the lender. If this total is below £2,500.00 you will be invoiced for the difference but if the total is over £2,500.00 no additional invoice will be raised but the balance will not be refunded.
No charges or fees will be incurred without prior agreement.