A 10 point guide to what happens when…
From first enquiry to receiving your money and beyond
While timings may vary, typically the process of taking out a lifetime mortgage takes 8-12 weeks from your initial enquiry
A lifetime mortgage is a popular type of equity release. It’s a long term loan which is secured on your property. The amount you can borrow depends on things such as your age and the value of your property. You don’t usually have to make any repayments before the end of the plan. Instead, each year interest is added to both the loan and any previous interest that’s already built up, which will quickly increase the amount owed. The loan and interest are repaid in full, usually from the sale of your property, when you die or have to go into long term care, subject to the provider’s terms and conditions.
A lifetime mortgage will always reduce the inheritance you can leave and may affect your tax position and eligibility for some welfare benefits.
Its important to consider the benefits, costs and risks before deciding whether a lifetime mortgage is right for you.