Lifetime Mortgage

Equity release/lifetime mortgages, provide a way for individuals to release some of the equity from the properties in order to support their lifestyle. This can be for a range a reasons, examples below : –

  • Carry out home improvements
  • Modernise the property
  • Renovate the property to meet any
    lifestyle requirements
  • Help children and grandchildren get on the
    property ladder
  • To release some funds to supplement annual income.

A lifetime mortgage is a loan that is usually based on a percentage of the value of your property, typically between 10% and 50% but unlike a ‘normal’ mortgage the loan doesn’t usually need to be repaid until your death (death of the last survivor on a joint loan) or sale of the house, whichever happens soonest.
Over the last few years products have become increasingly flexible meaning payments can be made towards the interest to slow the ‘roll-up’ effect of annual interest, or alternatively the interest can be serviced in full if that is a requirement. Drawdown options are also available meaning interest does not get charged on the equity being released until it is actually required.
At Next Chapter Financial Planning our equity release experts will take you through the whole process step by step, making sure that equity release is the right solution for you and the correct package is in place to support your requirements.

This area can be very complex and bespoke individual advice is always recommended

Lifetime Mortgage

The mortgaged property (which may be your home) may be repossessed if you don’t keep up repayments on your mortgage.

Equity release is a loan secured against your home, which is repaid when you die or go into Long Term Care. Property prices are subject to fluctuations and this means that the current valuation of your property may not necessarily be an indication of its future market value.

Equity Release plans and lifetime mortgages are complex products. To understand the features and risks, ask for a personalised illustration.