Interest Only Lifetime Mortgage
What is an Interest Only Lifetime Mortgage?
Do you like the idea of making payments every month to stop the roll up of interest? With this option, you can choose to make regular monthly payments, to pay the interest off in full or partially. Essentially this is similar to a lifetime mortgage, but you will be committing to monthly repayments to keep the roll up of interest at a minimum. You keep 100% of your home and therefore will benefit from the potential increase in its value. The capital is then typically paid back when the last person on the title deeds passes away or moves into long term care.
Features of an Interest Only Lifetime Mortgage
- You receive a tax-free lump sum of cash that you can spend on what you want.
- You keep 100% ownership of your home and will benefit from the potential future increase in property value.
- You are committed to a monthly repayment thus meaning you will combat the roll up of interest and reduce the overall impact to your estate.
- There are options which allow you to ‘ring-fence’ and protect a percentage of your home, thus ensuring a guaranteed level of inheritance for the future.
- There is the potential to access a higher level of monies with some interest only plans.
- You get coverage from the Equity Release Council, meaning you can remain in the property for the rest of your life, and you will also have the right to move.
- This also brings with it a no negative equity guarantee, meaning you can never owe more than the property value and therefore never leave any debt to the estate.
- You will have to complete and affordability analysis to ensure that this option is suitable, this is discussed with your advisor.
Is this option right for you?
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Other Equity Release Products Available
There are other Equity Release options that may suit your specific needs. Speak with one of our qualified Equity Release Advisors to discuss your options further.
Lump Sum
Lifetime Mortgage
The most popular form of Equity Release; a Lifetime Mortgage allows you to take a lump sum of tax-free cash from your home, whilst keeping 100% ownership.
Drawdown
Lifetime Mortgage
This variation of a Lifetime Mortgage allows you to access the money more flexibly rather than as a lump sum, allowing you to easily access funds in the future.
Buy To Let
Lifetime Mortgage
A specialist type of Equity Release which allows you to gain access to a lump sum of tax-free cash from a rental/investment or second home property.
Home Reversion Plan
Under this option you will sell part or all of your home to the home reversion lender in exchange for a lump sum of cash. You no longer keep 100% ownership of your home.
Lump Sum
Lifetime Mortgage
The most popular form of Equity Release; a Lifetime Mortgage allows you to take a lump sum of tax-free cash from your home, whilst keeping 100% ownership.
Drawdown
Lifetime Mortgage
This variation of a Lifetime Mortgage allows you to access the money more flexibly rather than as a lump sum, allowing you to easily access funds in the future.
Buy To Let
Lifetime Mortgage
A specialist type of Equity Release which allows you to gain access to a lump sum of tax-free cash from a rental/investment or second home property.
Home Reversion Plan
Under this option you will sell part or all of your home to the home reversion lender in exchange for a lump sum of cash. You no longer keep 100% ownership of your home.