Compare Lifetime Mortgages

Compare Lifetime Mortgages

Compare Lifetime Mortgages

Compare lifetime mortgages through our expert tools today. A lifetime mortgage can be defined as one of the numerous schemes of equity release, with each scheme varying in the structure of the arrangement, the loan amount the borrower is eligible to obtain, and also the way interest is repaid. Lifetime mortgages enable individuals, in sought of generating extra income, to free up cash by securing a loan against the value of their house. We have a team of specialist advisers, who are available to compare lifetime mortgages, in order to find a scheme which is beneficial and efficient to the clients needs.

It is necessary to compare lifetime mortgages available to mature individuals within the UK, as lifetime mortgage providers offer individuals three key schemes; interest only, interest rollover and home income plans. Drawdown lifetime mortgages, which are an alternative form of an interest rollover scheme are also available on the market. Individuals must be over the age of 55 to be eligible to apply for a lifetime mortgage.

It may be useful to seek advice from a financial adviser, who will use their knowledge in equity release to compare lifetime mortgages. An interest only scheme and an interest rollover scheme are similar, as they both permit the borrower to repay the debt of the mortgage back to the provider at the end of the agreement. The agreement ends when the borrower dies, or moves into a care home indefinitely. The two schemes differ as interest only schemes require the borrower to repay interest on a monthly basis, whilst interest rollover schemes only calculate the interest every month and then require the borrower to repay the amplified interest along with the mortgage debt, subsequent to the termination of the contract. Interest rates may be variable, or remain fixed on both schemes.

Home income plans work on a completely separate principle, as the borrower repays fixed monthly payments of mortgage and interest. The borrower may arrange an annuity, which will provide a fixed lifetime income that can contribute to the monthly mortgage repayments.

Also, drawdown lifetime mortgages work in the same way as interest rollover schemes. Instead of the borrower receiving a large initial cash lump sum; they receive a smaller sum of cash at the beginning of the arrangement and are able to withdraw further finance throughout the term of the contract. Our specialist advisers will compare lifetime mortgages in order to find an ideal and appropriate lifetime mortgage scheme for each client’s needs and requirements.

There are various advantages associated with each form of lifetime mortgage. Interest rollover schemes are beneficial as they do not require monthly payments by the borrower and the borrower is also guaranteed occupancy within the residence for life. However interest is likely to roll up, thus reducing equity within the property, which may leave little or nothing for the heirs of the borrower.

Interest only schemes may be useful for younger borrowers, who have existing debts that need repaying. However, the borrower must issue monthly payments of interest, so he/she must have sufficient income to complete these payments.

Home income plans offer a fixed rate of interest, so the borrower knows exactly how much they need to pay. However home income plans often do not provide enough income for the borrowers to repay monthly mortgage and interest costs, resulting in further roll up of debt.

It is absolutely essential that individuals compare lifetime mortgages before selecting a lifetime mortgage arrangement. Choosing an inappropriate scheme could prove to be costly as financial problems, such as an increased debt, may lead to further penalties. Our team of specialist advisers are able to compare lifetime mortgages for all clients, ensuring they choose the most beneficial and cost-effective lifetime mortgage.

If you wish to compare lifetime mortgages, contact our specialist advisers now.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.

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This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.