Tel. 01823 765045

What is a lifetime mortgage?

medium shot grandmother girls

Equity release schemes (also known as a lifetime mortgage) are becoming far more frequently discussed in the media, but rarely are the various options and lending criteria fully considered and discussed.

Technically, a lifetime mortgage is a long-term loan secured against your home, repaid when you pass away or go into long-term care.

With a lifetime mortgage, if you are 55 plus you can release a portion of your home’s value in tax-free cash to spend on a variety of uses.  

You may wish to – 

  • Help family onto the property ladder
  • Support the cost of living
  • Carry out home improvements
  • Consolidate debt
  • Support retirement
  • Travel

At Blackdown Financial, we understand the importance of understanding all options available to us throughout our lifetime, to enable us to make the best-informed decisions and achieve personal goals. 

Common lifetime mortgage queries we hear are – 

? I don’t want to leave my family any debt.

Most plans meet equity release council standards and come with a ‘no negative equity guarantee.’ This  means borrowers can never owe more than the value of their home, and therefore won’t leave loved ones any additional debts to repay.

? Will I still own my own home?

Yes, you will still own your own home.  This type of product doesn’t involve selling your home to the lender, instead you are simply borrowing against it, you remain the owner. 

? My family would like to be part of the process.

Yes, as part of our strict process we always strongly encourage our clients to involve their family in the decision-making process and any meetings.

? Will we be able to move home in the future?

Yes, subject to the lenders criteria, plans can be transferred to the new property without incurring any early repayment charges.

? We would like to leave an inheritance to our family.

Some plans allow clients to protect a percentage of the future value of their home to leave as an inheritance.

As Independent Financial Advisers, Blackdown Financial complete detailed research and diligence before recommending any mortgage from the ‘whole of the market.’ 

All potential advantages and disadvantages are considered before any formal recommendation is made, such as:

  • the impact of compounding interest on the size of the mortgage balance over time
  • how any eligibility for means-tested benefits may be affected
  • how any future inheritance will be reduced by releasing equity
  • the stricter property underwriting criteria

If you are interested in having a free consultation to discuss a lifetime mortgage with one of our team of qualified advisers, please feel free to contact us on 01823 321616, or email: [email protected].

With Simon Cutler
Director & Financial Planner

Leave a Reply

Your email address will not be published. Required fields are marked *

Share this article


You may also like...

Paying Inheritance Tax

Paying Inheritance Tax

For those dealing with someone’s estate after their death, the Inheritance Tax bill can come as a nasty shock

what is your number

What is your number?

Each of us has a number, a number that is very important. This is the amount of money we will need to achieve and maintain

prenuptial agreement

What is a prenup?

A prenuptial agreement, or ‘prenup’, is a legal agreement between a couple signed before marriage.

We go to print in...
Articles by category