A Lifetime Mortgage is a type of equity release plan which allows you to borrow against your home.
Most providers will lend between a fifth and a half of its value.
You will be charged interest on the debt the annual rate is likely to be a percentage point or so higher than for a similar ordinary mortgage and is usually set at the beginning for the entire term.
The loan does not need to be repaid until you die, and with most plans you won’t even be expected to make monthly interest repayments, as this will roll up and be added to the original debt.
Some providers will allow you to draw down cash as you need it up to the agreed maximum and pay interest only on what youve taken.
The downside is that you will be charged interest on the interest, which means it will soon mount up in fact, in ten years your debt can nearly double.
If you borrow half your property’s value, assuming this remains static, you or your heirs could be left with virtually nothing.
Your debt should never be greater than your property’s value, so you won’t owe more than this.
But if its value does rise, and you live longer than ten years, your rolled-up interest bill will continue to eat into your loved ones inheritance.
If you are interested in finding out how much equity release you could get for yourself, the calculator below will give you a rough idea of what is possible.
To get a more precise figure the best thing to do is to talk to an Equity Release Specialist. To contact a recommended one simply click the “Next” button – after entering your figures – then fill out the quick contact form. You will be contacted soon for a free, no obligation quote.