A Lifetime Mortgage is designed to run for the lifetime of the customer although there are options to repay early. There are no monthly payments to make so the interest rolls up, although there is an option to make monthly or voluntary payments. The customer maintains 100% home ownership and can move the mortgage to another property if they wish or can pay it back at any time.
When the customer passes away, the mortgage plus interest is redeemed from their estate.
- Youngest person on the deeds is aged 55 or over
- Live in the home they want to release equity from for at least 6 months of the year
- Minimum property value of £70,000 usually
- Minimum release of £10,000 usually
What is it for?
- Make home improvements and increase its value
- Help loved ones onto the property ladder
- To upsize to a more expensive home
- Gift family & loved ones an early inheritance.
- Help family plan for a wedding or a new family member.
- To clear an existing mortgage.
- Enhance a lifestyle.
- Realise ambitious travel plans.
- Boost a business with some capital.