Lifetime Mortgages

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Lifetime Mortgages

The demand for lifetime mortgages has increased over recent years. Essentially, this approach involves people over the age of 55 releasing equity from their home for various purposes such as –

  • Repaying an outstanding mortgage
  • Gifting money to family
  • Supplementing retirement income
  • Restructuring debt
  • Holidays, cars, home improvements etc.


What makes this approach different is the option to elect to

  • Make monthly payments
  • Let the interest ‘Roll Up’
  • A combination of both
  • If interest rolls up, this can have a big impact by reducing the value of your estate and therefore your family’s inheritance. It’s therefore vitally important to speak to a specialist.


In the first instance, you need to consider alternative options to finance such as –

  • Scaling down
  • Seeking assistance from family
  • Potential pension / inheritance / investment income


If finance is the best route, the next step is to look at your later life lending options as a whole i.e. –

  • Standard mortgages
  • Retirement Interest Only Mortgages
  • Equity Release / Lifetime Mortgages


Lifetime mortgages have their place, but they’re not right for everyone. All options need to be considered to ensure the best outcome.

Contact Symmonds de Lacey for specialist advice on later life lending.

 

 

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