One Lifetime offer Equity Release lifetime mortgages and a lifetime mortgage is a long term loan secured against your home which is repaid when you die or go into long term care.
A lifetime mortgage charges interest on the total amount of the loan including the interest that has already accumulated, so the amount owed will quickly increase. You can also take a cash lump sum and the costs involved will reduce the value you have in your home and the amount of inheritance you are able to leave. Although the amount of inheritance you can leave will always be reduced by equity release you can choose an inheritance guarantee to ensure you can leave something for your loved ones. However, this will reduce the amount of money you can borrow and may affect the interest rate applied.
Some of the benefits are as follows:
- You will receive an amount of money to spend on whatever you want.
- You keep ownership of your home and can continue to live there until you die or go into long term care.
- You don’t have to make any monthly repayments during the lifetime of the loan, as the loan and interest are rolled up and repaid by the sale of your property when the plan ends. This is normally when you die, or move into long term care.
- You can still move if you want to, as long as your new property meets our lending criteria at the time. Please note the lending criteria is imposed by the lender.
- Our “no negative equity guarantee” means you’ll never have to repay more than the money you receive from the sale of your property as long as it is sold for the best price possible. Please note the lending criteria is imposed by the lender.
- We encourage you to involve your family in the decision process and they can attend any of the appointments you have with one of our advisers.
A lifetime mortgage is a long term commitment and can be very expensive if you decide to repay the loan early and you may have to pay a substantial early repayment charge.
It is worth noting that if you have an existing mortgage on your home, you would have to use the money you release to pay off the existing mortgage first, but then you would be free to spend it as you wish. Also, you don’t have to pay tax on the amount you borrow, but it may affect your tax position and entitlement to means tested benefits.
This is a lifetime mortgage. To understand the features and risks, please contact one of our mortgage advisers and ask for a personalised illustration.
CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.
There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be a £1,000.
The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.