Lifetime Mortgage
Lifetime Mortgages provide you with the opportunity to unlock the equity within your home without having to make any interest payments or move out. Lifetime Mortgages are available to home owners aged 55 or older and there are two ways equity can be released.
Please note that we are not authorised to provide advice in this area but can refer you to an authorised adviser who can help you with your enquiry.
Home Reversion Plans
| Lifetime Mortgages allow you to raise a mortgage against your property and receive a tax free lump sum or regular guaranteed monthly income and retain full ownership of your home. Home Reversion Plans also known as Home Income Plans allow you to sell part or all of your property in exchange for a tax free lump sum or regular monthly income and a guaranteed lifetime tenancy. |
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Lump sum or regular income
Lifetime Mortgages and Home Reversion Plans offer you the option to receive either a tax free lump sum or a regular tax free income. We can also arrange Lifetime Mortgage schemes that allow you to receive an initial tax free lump sum and a regular income.
Safe Homes Income Plans {SHIP} Guarantee
When you arrange a Lifetime Mortgage or Home Income Plan it is important to check that the provider is a member of SHIP. There are many advantages of the SHIP code of conduct, but the most important is the provision of a ‘No Negative Equity’ guarantee.
Tax Planning
Lifetime Mortgages can be used as a tool to mitigate or reduce both inheritance tax and personal tax. You should also consider the effect of a lump sum could have on any age allowances or social security benefits you receive.
Insurance Requirements
If you chose a Home Reversion Plan then the buildings insurance will normally be the responsibility of the plan provider. If you chose a Lifetime Mortgage you will be responsible for maintaining both the buildings insurance and the contents insurance.
Help and Advice
There are many different Lifetime Mortgage schemes available in the UK and it makes sense to take independent financial advice to find an equity release scheme that offers you the most competitive terms. Please contact us so we can refer you to an independent financial adviser to discuss your requirements.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
There will be a fee for mortgage advice. Our typical fee is £595.