A Lifetime Mortgage is a financial tool that helps homeowners to be able to have their equity to be released from their homes with no tax and spend their money as they see fit. Without downsizing and having no chance of losing your home whilst remaining the primary resident, releasing equity with a Lifetime Mortgage enables you to do so. Property prices keep rising over the years and ultimately the equity in your home increases and you become eligible for an equity release. Releasing equity with a Lifetime Mortgage is a valuable financial tool for the homeowner since getting access to their equity means getting a supplement for their finances.
According to Mortgage Introducer, Since the beginning of 2019, we have seen a distinct rise in the value over 55-year olds are releasing from their properties to help their loved ones. Data shows that the average loan now sits at over £110,000, up a quarter compared to 2018, when it was just over £85,000. Loans taken out to give money to families are now the largest of all. Nearly one in five of the mortgages taken with us in 2019 is for this purpose.
Te two types of lifetime mortgages with different costs that you can choose from:
It is important to reconsider and think through about getting a lifetime mortgage. There are alternatives such as Retirement Interest Mortgages. Depending on your age and circumstances there are factors you need to consider as a person who is considering a Lifetime Mortgage.
If this is true for you, your home should be kept in good condition through regular maintenance , you may also need to set aside some money. Don't forget to ask your advisor questions to get clarification on anything you might not be sure about.