Lifetime Mortgages UK

Lifetime Mortgages UK

Lifetime mortgages UK refers to a form of equity release offered to mature individuals in the UK who are seeking a means of increasing income or capital. An individual who is seeking a lifetime mortgages is provided with a cash sum by the lifetime mortgages UK provider, under the condition that this sum is repaid, along with interest, by the end of the term of the arrangement. By seeking advice from our expert advisers, each client will receive advice on whether lifetime mortgages UK deals are suitable for generating cash income, or whether alternative options may serve a higher benefit to their financial requirements.

Lifetime mortgages UK arrangements continue until the event of the plan holders death, or if the plan holder moves indefinitely into an institute of permanent care, due to poor health. The plan holder may be able to terminate the arrangement if they decide to move homes; however this requires the plan holder to repay the entire mortgage debt to the provider. Lifetime mortgages in the UK offer three different schemes to individuals seeking equity release; interest only, interest rollover and home income plans.

Interest only schemes enable the plan holder to repay the mortgage at the end of the arrangement; however interest rates are paid during monthly intervals and interest rates may be variable. The arrangement of an interest only lifetime scheme may benefit younger individuals, as this mortgage can contribute to the repayment of previous loans. On the other hand, the plan holder must still issue monthly interest payments, which may significantly increase the overall debt if interest rates were to increase. If an interest only scheme seems appealing to an individual, our advisers are on hand to find out whether interest only lifetime mortgages UK products will serve the most benefits to the clients plans.

An interest rollover scheme does not require the plan holder to repay the loan or interest until the contract ends, yet interest rates may not be fixed and are still calculated every month, which may enlarge the overall debt payment. Interest rollover lifetime mortgages in the UK have a number of benefits, including a guaranteed occupancy for life for the borrower and no monthly interest payments are required. Conversely, this scheme may consequent in a swift roll up of interest, especially if interest rates rise, producing a larger debt.

Home income plans are another lifetime mortgages UK form. The plan holder is provided by an initial sum of money, which may be used to purchase an annuity, which provides a plan holder with a consistent lifetime income. The plan holder may use this income to repay monthly instalments of the mortgage and interest. Interest rates are fixed among home income plans.

Individuals must realise the numerous risks associated with each lifetime mortgages UK product understand the differences between each form of lifetime mortgages UK product. Our job enables us to help clients in the selection of an appropriate lifetime mortgage, based on the requirements and financial needs of the client.

If you are interested in receiving more information regarding lifetime mortgages UK, contact us today.

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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.