A Lifetime Mortgage is in many ways very similar to the type of mortgage that you may have had when you first purchased your home. The amount of loan available is based on your age and the value of your property. The mortgage is interest only and is repayable either upon your death or when you decide to leave the home permanently, for instance, if you decide to go into residential care or move in with relatives.
A Lifetime Mortgage is portable and you can repay the loan early if you wish to although there may be considerable penalties to pay in this instance. You remain as the full legal owner of the property at all times.
The most important feature of a Lifetime Mortgage is that there are no monthly repayments to make. The interest charged is added to the loan annually which is described as compound interest. Most importantly you should always choose a mortgage which offers a No-Negative Equity Guarantee.
Why not try our easy to use calculator to find out how much you may be able to release from your home?