 |
||
| 10 years providing independent mortgage advice on the Internet. | ||
|
|
|
|
|
We aim to achieve a 30 minute response time during office hours |
  |
|
  |
  |
|
| Lifetime Mortgages | ||
|
You do not have to make any ongoing payments to these mortgages but you have to be of a certain age and you can only borrow about a quarter of the property value. Be careful, these loans roll up and are taken from your home when you die. Talk to your family before commencing a lifetime mortgage. This is a very specialised area of lending with many pitfalls, please call us for advice. What does the calculator above tell you? In essence it shows the percentage of your property that is earmarked to repay the mortgage (a mortgage that you do not have to make any payments to). By including inflation you can see how much of the potential future value will be lost in order to repay the original loan and the interest that has accrued over the stated time period. The interest rate used is currently available on a fixed basis for the term of the mortgage Lifetime mortgages may be suitable for retired persons wishing to release equity from their home without the need to make payments of interest or capital to the lender. There are several types of scheme, the most common being where interest rolls up until death and then the home is sold to repay the original borrowing and accrued interest. There are certain guarantees required of a lifetime mortgage provider
The amount that can be borrowed is linked to age and the value of the property. No proof of income is required since no repayments are made. Credit status is not normally an issue unless you are a declared bankrupt. Before releasing equity from your home you should make sure that it will not affect any state benefits that you might receive; many benefits are means tested and could be withdrawn if you release equity from your home. You should also find out if you are entitled to any benefits that you were not previously aware of, this may negate the need to release equity from your home. We recommend that you discuss equity release with your beneficiaries before taking matters any further. The service we provide is to find the most suitable type of equity release mortgage for your individual circumstances - there are many to choose from and making the wrong choice could prove very costly and leave your family very angry after your death. We will make enquiries to your local authority to determine whether or not you could be entitled to any benefits and make sure you are aware of the implications of benefit entitlement as a result of equity release. We charge a fee for our work in respect of equity release and will discuss this with you before you make any commitment.
|
||
|
|
||
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT