A Lifetime Mortgage Lump Sum is ideal if you’re looking to release a cash amount from your property, which can be used to pay for a specific expense such as home improvements or a holiday.
There is no requirement to make regular monthly repayments as the amount that you release, plus any interest accrued, is repaid from the money made when the property is sold. This happens when you die, move into long-term care or permanently leave the property.
This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.
Products are available from the age of 55
The cash you release is tax-free and can be spent as you wish
You continue to own your home, thereby benefiting from any future increase in its value
There is no requirement to make monthly repayments
The ‘no-negative-equity’ guarantee ensures that you can never pass on debt to your estate
Products can allow you to protect a percentage of your property value so that your family could inherit a part of the property value
No more monthly repayments for your mortgage as it is a condition that you pay off your mortgage with the money you release from your home
The size of the lifetime mortgage will grow over time. This is because interest is added to the original loan amount and it continues to roll up as future interest is added on top of this
If you want to increase the amount of equity released beyond the original amount agreed, you would normally have to apply for a further advance, which would not be guaranteed
The amount that you will leave as an inheritance will be reduced
If you wish to pay off the equity release product early, you may have to pay an early repayment charge, these differ from product to product
In some cases the lump sum of money that you release could affect your entitlement to any means-tested benefits that you may receive now or in the future.