A lifetime mortgage is the most common type of equity release, which allows you to release a large cash sum from home or provide a regular income over a fixed term. The idea is that it lasts for your entire lifetime, hence its name, and you can choose to make monthly interest repayments or pay nothing until you die or go into long term care.
The main attraction is that you are able to continue living in your home for the rest of your life, with the option to move or downsize and transfer your lifetime mortgage accordingly. You can still have an outstanding mortgage and the amount you can borrow is based on the equity that you have in your property, with most UK homeowners being able to borrow up to 60% of their home value.
You must be a homeowner and have a minimum age of 55 to be eligible. There are several different types of lifetime mortgages which give different payment options and flexibility including:
Drawdown lifetime mortgage: This allows you to draw down money as and when you need it, allowing you to keep funds in reserve where interest is not accrued. According to the Equity Release Council, this option is used by 3 out 5 equity release customers.
Roll-up lifetime mortgage: This is where you receive one lump cash sum (not provided in regular drawdowns) and repayment is rolled up until the end of the mortgage term, which is when the last homeowner on your property deed either dies or moves in long-term care.
Flexible lifetime mortgage: This enables you to make flexible overpayments when you wish, and doing so will minimise the cost of the overall loan. This can be a sensible option if you are looking to preserve as much as possible for your children’s inheritance.
Enter your details into our lifetime mortgage calculator in less than 30 seconds. Fill in your current property value, outstanding mortgage, age, postcode and contact details and you will be presented with a number of different lifetime mortgage plans which are based on your requirements.
Our results are presented to you in real-time, taking existing products from the market and providing a range of options to suit your needs. For more information and to proceed, one of our equity release experts will contact you to offer advice, answer any questions you have and guide you through the next steps.
Equity Release Online works with a number of FCA regulated mortgage and equity release providers, helping you find the perfect balance and financial product for your circumstances. Our calculator is completely free to use and any quotes are no obligation.