Why Do I Need a Lifetime Mortgage?
A Lifetime Mortgage is not right for everyone and our qualified adviser will help you find out if it is right for you. Many people use Equity Release to make home improvements or to enhance their lifestyle. This might be one of those essential repairs or home improvements you’ve been putting off or a holiday you didn't think you could afford. Whatever your reasons or hopes, contact us to find out more.
Due to the complex nature of a Lifetime Mortgage and the number of plans available, the first step is to contact one of our advisers to discuss your requirements and circumstances.
Our fully-qualified equity release adviser will take the time to get to know you, either in the comfort of your own home, or over the phone - whichever you prefer and they'll recommend the most suitable option for you and your circumstances. Rest assured, though, if equity release isn't right for you, they'll tell you.
All of the plans we recommend are approved by the Equity Release Council and come with several protections, including the no negative equity guarantee, which means you'll never owe more than your home's value.
The second part of the Lifetime Mortgage process requires the services of a solicitor to ensure all the legal aspects of the Equity Release transaction are carried out correctly and that you fully understand your plan.
Whilst any financial advice on Lifetime Mortgage plans will be provided by us, the legal advice will be provided by your appointed firm of solicitors.
For more information, please call us today on: 01823 426046 or email us at office@quantockfinancial.co.uk
The Benefits of a Lifetime Mortgage
Lifetime Mortgages are regulated by the FCA and can be a safe way to access some of the equity tied up in your property. This tax-free cash can be taken as a lump sum or in instalments, and the best thing is it can be used however you want.
The advantage of a Lifetime Mortgage is that it gives you money to spend now, rather than leaving it locked away in your home. Rising house prices in the UK means that a large proportion of homeowners’ wealth is tied into their property, and inaccessible.
If your home has increased in value over the years, equity release can help you access some of that money to supplement your retirement income – instead of leaving it all to your beneficiaries, or to cover your long-term care costs.
You will have tax-free cash to spend on what you choose
You won't have to pay tax on the money you release. You could use the money to:
- Pay off your mortgage or debts
- Make improvements on your home
- Top up your income and live more comfortably
- Help loved ones
- Pay for something for yourself, like a holiday
- Spend on whatever you want
The main advantages of a Lifetime Mortgage
You can continue to live in your own home, rent free, for the rest of your life or until you move into residential care.
The ‘no-negative equity guarantee’ means that you will not have to repay more than the value of your home and that your estate will never owe more than the property is worth when it is sold.
The tax-free cash that you release can be used on anything you choose, from home improvements, paying off a mortgage or debt, or for a holiday.
The flexibility of modern equity release plans means that you can release the money as a lump sum, or a lump sum with a drawdown facility.
Drawbacks of a Lifetime Mortgage
There can be drawbacks to a Lifetime Mortgage, which it's why we check it's right for you.
- Even with Inheritance Protection, taking a Lifetime Mortgage is likely to reduce how much you can leave as an inheritance
- If you're receiving certain benefits, taking a lifetime mortgage could impact your entitlement to these benefits
- Usually the interest rates for a Lifetime Mortgage are higher than the rates charged for a traditional mortgage
Advice on Lifetime Mortgages are regulated by the FCA.
A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.
A lifetime mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action. If you are considering releasing equity from your home, you should consider all options available before equity release.
The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution. As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.
Although the final decision is yours, you are encouraged to discuss your plans with your family and beneficiaries, as a Lifetime Mortgage could have an impact on any potential inheritance. We would also encourage you to invite them to join any meetings with your Financial Adviser so they can ask questions and join in the decision, as we believe it is better to discuss your decision with them before you go ahead. This is a referral service.