Lifetime Mortgages & Equity Release
A lifetime mortgage is the most common type of equity release.
Overview:
Unlock tax-free cash from the value of your home while continuing to live there
Chose between Lump Sum (one off cash payment) or Draw Down plans (initial cash payment with an opportunity to return for more in the future)
A choice to not make any payments and allow interest to “roll up” known as compound interest or pay or even overpay to control or reduce the debt
Payment-based lifetime mortgages are becoming more widely available and popular
All Equity Release Council–approved products allow voluntary payments
Some products let you commit to monthly payments, often at a discounted rate
Our Advice
Our team will help you determine whether these options are suitable for your circumstances.
Available to homeowners aged 55+
The loan and interest can be repaid when your home is sold (usually after you pass away or move into care)
You’ll always be covered by the “no negative equity guarantee”, meaning you’ll never owe more than your home is worth
Example
Mrs T, age 72, wanted to help her grandson with university costs and update her kitchen. A lifetime mortgage would give her the funds she needed without having to move, and she continues to live happily in her home.
Home Reversion
A Home Reversion Plan is a type of equity release scheme where you sell all or part of your home to a provider in exchange for a tax-free lump sum or regular income, while retaining the right to live in the property rent-free for the rest of your life. Unlike a lifetime mortgage, you no longer own the portion of the home you sell, which means it will not form part of your estate. At One Stop 4 Later Life, we do not offer advice on Home Reversion Plans directly. However, if a home reversion is identified as the most suitable financial solution for your circumstances and objectives, we will refer you to a specialist adviser who is fully qualified to help you explore this option in detail.
A Home Reversion will reduce the value of your estate and may affect your entitlement to means-tested benefits.
Speak To An Adviser
Check your lifetime mortgage eligibility here.