This will only be considered by the lender if you have little or no outstanding payments remaining on the mortgage of your property. Any outstanding mortgage payments must be paid off by using the equity released or by other means if desired.
With this plan, an agreed percentage of the current value of your home will be released, and this loan will accumulate interest at a rate in line with current interest rates.
NB. Some lenders will offer interest at a capped rate, for your security, in the event of a dramatic rise in interest rates.

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For a personalised illustration and one to one advice please complete our CALL BACK FORM so that an independent mortgage advisor can contact you to discuss your options further.
(If you are not over 55 years old but wish to release money from your house as a loan or re-mortgage in the normal way then please visit our standard mortgage and re-mortgage pages HERE).

The lifetime mortgage plan is offered as a tax free fixed loan. For example, if you borrow £40,000 against the value of your property, you must pay back £40,000 plus any interest and other costs that have been accrued, exactly as you would with a traditional mortgage or personal loan.
The lifetime mortgage does not have to be paid off by the sale of your home upon your death or your moving into long term care / sheltered accommodation. For example, if your family wish, they could choose to pay off the lifetime mortgage and retain the family home.

A New Release of Life - Article by:
Stephen Williams of Deloitte & Touche explains why equity release is back in favour.
Equity release mortgages have become increasingly popular in the last couple of years, with a number of high street lenders having now entered the market to unlock the estimated £800bn of equity in the UK.

Lifetime mortgages have been available for approaching 40 years. However, their recent popularity is due to people's desire to boost their income at a time of lack-lustre equity markets and low interest rates, following a period of substantial property price increase. In addition, parents have either felt less of a cultural imperative to pass on their wealth to their children, or have provided them with help to establish themselves on the property ladder.
But what is an equity release mortgage? Fundamentally, it is a loan designed to release equity tied up in a property in order to raise capital. Typically, it is used to cover a wide range of products, from general capital raising loans (to purchase a car, for example) to loans generally aimed at older consumers for income generation or perhaps to fund care costs. Within the wide definition: "Home reversion" involves the homeowner selling all or part of the property to a third party in return for a lump sum (and/or a regular income) with the right to remain in the property.
"Lifetime mortgages" are where a mortgage is raised on the property and either:
An annuity purchased and the mortgage repaid on the sale of the property;
Interest is rolled up and added to the original loan which is repaid on death or sale and no interest is paid during the mortgage; or -
Although of limited availability, the loan is repaid on death or sale together with a fixed percentage of the growth in the property value with interest paid during the life of the mortgage.
The potential of these products has always been there, but has been held back due to problems with such schemes in the late eighties. At this time a number of people felt that they had lost their homes as the proceeds had been invested in high-risk products which had failed to perform, or they felt that inappropriate advice had been given.
With the latest growth in the market it is important that this does not re-occur, and therefore safeguards are being put into place to protect the reputation of this industry.
To ensure that this industry prospers, financial advisors and product providers must ensure that consumers receive appropriate advice so that borrowers have a full appreciation of the implication for them, and their families, of entering such arrangements. This will protect the reputation of an industry which satisfies a genuine need.

In order to receive specialist advice on equity release (lifetime mortgages) please complete our simple CALL BACK FORM so that one of our panel of independent mortgage advisors can contact you to discuss your requirements further.

Please think carefully before securing any debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
For all mortgages and loans please be sure that you can afford the repayments before entering into any credit agreement. The figures and information quoted on this site are believed to be correct at the time of issue and are subject to change without notice. Any quotation supplied is NOT an offer of a mortgage.

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Please be aware that it is a criminal offence to give misleading or incorrect information in connection with a loan application. Specific actions may be taken to prevent fraud.