by Sam Fox Warrington Mortgage Centre
WE all know someone (most likely your nan) who has been banging on about going on that world cruise for the past 5 years.
Or maybe you are that person. What if we told you there was a way to free up some equity and go on it?
If you’re lucky enough to be in the position where you are a homeowner, and you’re aged 55 or over, then your kids are most likely grown up by now and you’re ready for that next adventure. This is where a Lifetime Mortgage comes into play!
A Lifetime Mortgage is a type of equity release, that’s a loan secured against your home based on how much the property is worth and how old you are.
They’re typically repaid when we pass away, or we move into long term care, therefore the mortgage itself is age-related, rather than being assessed on your personal income. So, if you want a property without a mortgage but have very little pension income, a Lifetime Mortgage might be a great option for you to release some equity.
If a world cruise isn’t on your bucket list, you can use the money for pretty much anything you want! Here are a few examples…
– Gifting it to your kids so they can buy their first home
– Renovating your property
– Topping up your pension income
You can choose to have the funds paid in a lump sum or set up in a drawdown facility, so you only need to pay interest in the money you need to take out.
Is a Lifetime Mortgage right for you?
Overall, Lifetime Mortgages are designed to give you complete flexibility as you’re moving through retirement. As long as you own your own home, there are so many options and ways of setting up Lifetime Mortgages. It’s important to understand each contract and consider which option is right for you as well as looking at the guarantees that are in place with your current mortgage and how it might have an impact on your tax payments.
So, if you are looking for any additional mortgage advise or want some help navigating through a lifetime mortgage contract, make sure you reach out to us on 01925 573328 or email [email protected].
Disclaimer: Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. To understand the features and risks ask for a personalised illustration.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care.
Equity release will affect potential inheritance and your entitlement to means-tested benefits both now and in the future.
