Lifetime Mortgage Rates

Lifetime Mortgage Rates

Lifetime mortgage rates are varying rates & products available among the different forms of lifetime mortgages. Individuals apply for lifetime mortgages in order to boost financial income, on the basis that the mortgage is either repaid, or the owner decides to concede a share of their property to the lifetime mortgage provider.
 
The plan comes to an end under the circumstance that the borrower dies, or moves into a care institution, without intending to return to the home. Lifetime mortgage rates are only offered to individuals beyond the age of 55. Our specialist advisers are keen on finding the most appropriate and constructive lifetime mortgage rates for our clients.

There are three distinct products where lifetime mortgage rates can be obtained, the first being interest only lifetime mortgage rates. On this scheme, the borrower repays the mortgage back as soon as the arrangement has been terminated, yet monthly interest rates are paid to the provider, whereby interest rates may be fixed or variable. Interest only lifetime mortgages may be beneficial, especially to younger borrowers. This is because the money received from the lifetime mortgage can contribute to the repayment of existing debts. Nonetheless, interest only lifetime mortgages authorise the borrower to pay monthly payments of interest and a variable interest rate may consequence in financial complications, thus producing uncertainty over the future of the property.

Another lifetime mortgage scheme is the interest rollover scheme. The borrower doesn’t need to administer monthly payments of interest to the provider. However, interest is calculated monthly and added to the final mortgage payment. Interest rollover lifetime mortgages have many variations.  The capital generated from the arrangement allows the individual to spend the money on their own intentions, or alternatively may be used to purchase an annuity, providing consistent lifetime income to the borrower. Borrowers may be free to extract inferior chunks of money known as drawdowns. We pride ourselves on providing clients with accurate lifetime mortgage information, suggesting which lifetime mortgage rate is efficient for each client’s financial needs.

An individual may choose to arrange a home income plan. This entitles the borrower to receive lump sum of money, which may contribute to obtaining an annuity. This enables the borrower to have funds to pay off monthly instalments of the mortgage and interest.

Home income plans can be of benefit to the borrower, as they substantially reduce the final debt that must be paid when the contract is terminated. This means more equity remains in the property, enabling the borrower’s beneficiaries to obtain the equity of the estate. However, this plan should only be arranged when the income from the annuity exceeds the mortgage payments each month. Borrowers may struggle to keep up with monthly payments, which may result in consequential penalties.

Any individual deciding on whether lifetime mortgage rates may be an ideal solution to their financial requirements must be wary of the advantages and limitations associated with all lifetime mortgage rates. Our advisers grant specialist help to those who are in search of lifetime mortgage rates.

Contact our advisers today to receive specialist advice on lifetime mortgages.

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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.