Lifetime Mortgage Plans 

Sometimes called "roll-up mortgage plans", these plans allow home owners aged at least 55 (with most lenders, 60 is the younger limit) to raise cash against their homes by way of loan. The cash may be taken in the form of a lump sum, a regular income, or a combination of both.

Although the loan is secured on your property, there are no monthly payments required and you retain ownership of your home throughout. The loan is repaid after death or going into care.

You should note that the rolling-up effect of interest on a lifetime mortgage can significantly reduce the amount of equity in your home, and it is potentially possible for the loan and accumulated interest to reduce the equity to zero, leaving nothing for your family to inherit. If leaving something behind to your family is important to you, it is vital that you take professional advice to understand all your options. To see an example of the way a loan and its interest builds up, and the consequent reduction in a home-owner's equity in their property over time, click here.

The amount you may borrow is dependent upon your age (the youngest if you are a couple).The (approximate) range of loans allowed by lenders (expressed as a percentage of the value of your home) is shown in the next column:          

The table deals with raising lump sums only, and is drawn from several lenders' tables. The lump sums which may be borrowed are subject to a minimum, e.g. £25,000.  

If you are interested in a plan in order to supplement your income, some Lifetime Mortgage plans are designed to generate a regular (e.g. monthly) income. Note that it is important to check the effect of releasing money from such a plan against your entitlement to any State benefits. These could be affected if it is determined that the funds raised from an Equity Release scheme supplement  your income to such an extent that your entitlement to State benefits is reduced or lost.

The main features are:

The equity release products may involve lifetime mortgages or home reversion plans. If so, to understand their features and risks, ask for a personalised illustration.

Click on the Ruby for a no-cost, no-obligation call-back

Financial Elite Limited is not a financial adviser company and does not give advice. It is an introducer to Independent Financial Advisers who are regulated by the Financial Services Authority. 

We are not the industry body S.H.I.P. Safe Home Income Plans nor are we related to them.

Please read our Privacy Statement before completing any enquiry form or emailing us.  

Registered in England and Wales Number: 5453659.

Financial Elite Limited is registered under the Data Protection Act 1998.

The information contained within this site does not represent financial advice, and we are not responsible for financial advice you may receive from recommended advisers, and do not  guarantee that any particular product or service will meet your own financial requirements. If you have any doubts about what is the most appropriate decision for you, you should seek independent financial advice.

Financial Elite Limited is not responsible for the accuracy or content of any information contained on websites linked from this site, nor for errors or omissions which may occur within this site.

Web Site by Financial Elite Limited