Later Life Mortgages
Equity Release, Your Home and Realising Later Life Ambitions
Do you have ambitions for your future? Perhaps you want to take a lengthy holiday or travel to the places that you’ve dreamed about for years. Or perhaps you want to make a large purchase like a car. Or fund early retirement, move home to a more expensive area but you are not able to raise a conventional mortgage. You may want to make home improvements and adaptions to your home, or leave an inheritance to your grandchildren to get them started on the housing ladder
Where do you find the money to achieve your lifelong ambitions?
Our Simple Process To Success
Whatever your later life or retirement ambitions are, our process is simple. Arrange a callback today.
- Get to Know You:
We run through a detailed fact find and really get to understand you and your borrowing needs.
- Market Research:
We research the market including options that are not available on the high street to match your particular needs with lending options.
- Your Options:
We present you with our findings, residential mortgage options, and explain in detail the pros and cons of each option. We answer any questions you may have.
- We Support You:
We’re here to offer advice, support, and help all the way through the process to your final decision.
- The Paperwork:
We complete all of the paperwork for you and manage all the communications with the lender so that you don’t have to, and we’ll help you answer any additional queries.
- Mortgage Secured:
We keep in touch for as long as you need support. Our after-sales care is second to none, and we know that you may have some questions afterward. So we’re here for as long as you need our advice.
Equity Release Mortgages are Regulated by the Financial Conduct Authority
Key information about Equity Release Borrowing
- A Lifetime Mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits and tax status. The impact of not servicing monthly interest payments on a Lifetime Mortgage is that the outstanding debt can grow rapidly, thus reducing the value of your estate.
- For example, if the interest rate was 7% a year, a £50,000 loan would double to £100,000 after 10 years assuming no repayments are made. This is an example for illustrative purposes only and personalised advice and recommendations should be sought from a qualified professional.
- You are strongly advised to register a lasting power of attorney. This will allow your affairs to be managed by somebody else if your mental abilities significantly decline’
- Securing an equity release plan depends on your age. You must be 55 years old or over to qualify.
- You must use the equity release funds to pay off your existing mortgage, or have no mortgage secured to your home
- The negative equity guarantee means that if your mortgage balance becomes more than the value of your property, then you and your estate will not be liable for the outstanding mortgage debt after the sale of your property has been realised. There are limits that you can borrow based on your age, health and property type at the time that you secured the loan
- Interest rates for equity release are fixed for Life.
- Equity release won’t affect your tax position, except in some very specific circumstances. Using the funds to purchase an income annuity is one example. An equity release specialist will be able to look at your financial position and advise on this.
- You won’t have to make regular monthly capital or interest payments although some lenders allow you the ability to overpay by repaying up to 10% of the original mortgage borrowing per annum. A lifetime mortgage is repayable either upon your death, or if you choose to move house. You can port you mortgage subject to criteria. Repayment would be made through your estate.
Pros
- No limits on what you can spend it on
You might want to make home improvements, help your children buy their first home, or increase your retirement income. The choice of how you spend the money is up to you.
- You can still move house
There are certain criteria, but you can move house and take your lifetime mortgage with you
- Stay in your home
You can stay in your home until you die or move into long term care
- Repayment options
You can choose to make repayments if you wish of either the interest, the capital, or both
Cons
- Means tested benefits
Taking out a lifetime mortgage could affect any means-tested benefits that you claim
- Interest rates are higher
Typically interest rates for this type of equity release are higher than conventional residential mortgages
- Reduced inheritance
Your beneficiaries will recieve less in your estate once your mortgage has been repaid
- Inheritance tax
If you gift money to loved ones they may be left with an inheritance tax bill after you die. The 7 year rule may apply
- Interest can build up
The interest on your mortgage will continue to build up over the course of your agreement. This may not be the cheapest way to borrow money
Releasing Equity From Your Home
If you are aged 55+ and have equity in your home, you may be able to release some of it through equity release in the form of a lifetime mortgage to realise the ambitions you have for later in life.
Equity release plans can provide you with a lump sum that is secured against your home. Interest is charged when you borrow money in this way, and will depend on the equity release products that you can access.
Whatever your reasons for releasing equity from your home, it is important to seek professional financial advice. There are strict rules and criteria around the different types of equity release, governed by the Equity Release Council, and regulated by the Financial Conduct Authority (FCA).
Equity release services are referred to a third party. Neither Liddle Perrett Ltd or PRIMIS are responsible for the service received
Equity Release Mortgages are Regulated by the Financial Conduct Authority
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