Later Life Lending
Equity release is designed for the over 55s who wish to raise tax-free funds to either enhance their retirement by using the equity in their home, or refinancing an interest only mortgage which may be come due while continuing to live in your home. We do not offer Home Reversion Plans where you sell part or all of your property.
Life Time Mortgages
These are the most popular form of equity release as the borrower retains 100% ownership of the property. Unlike a traditional mortgage, lending is based on the market value of the property and age and health status of the borrower(s); therefore your income and credit history is not normally taken into account. Typically you can borrow more the older you are and if your state of health is not good you may be able to borrow a little further if needed.
Lifetime mortgages allow the borrower to release funds for any purpose, the money is tax free and you are not required to make any repayments for the rest of your life while you remain in the property. The funds can be released as a lump sum or in smaller payments as a drawdown facility to be used as and when they’re required.
The interest is typically ‘rolled up’ and added to the amount owed each month. A lifetime mortgage is usually repaid from the sale of your home when you or your partner dies or enters long-term care.
There is also a ‘no negative equity’ guarantee, so you or your estate beneficiaries will never be liable to pay anything over the value of their home. You can also opt to include ‘inheritance protection’ with some plans that will guarantee an agreed percentage of your home’s value will be passed down, irrelevant of how much interest is owed.