Lifetime mortgages allow you to enhance your quality of life by accessing the equity in your property, and often forget all about the amount owed which is only repayable after you pass away or go into long term care. However, for those who are used to standard residential mortgages, the idea of letting the mortgage compound and erode the equity in your property over time can be a scary thought. Interest-only (and interest-payment) variations of lifetime mortgages allow you to reduce the erosion of equity against your estate, just like a standard residential mortgage does.
The lender allows you to make regular payments on your lifetime mortgage which help ensure that the amount you owe will not increase (full interest-only payments) or will even reduce in size (capital & interest payments). If your current mortgage is coming to an end and you have sufficient income, interest-only and interest-payment lifetime mortgages allow you to continue making mortgage payments to maintain or reduce the size of the mortgage. However, a significant benefit over a residential mortgage is that you also have the flexibility of reducing or stopping your payments altogether in the future. Interest only mortgages can also be suited to those may be unable to take out a standard residential mortgage due to poor credit history's or a lack of provable income.
"a good adviser will handle everything"
Allows you to control the erosion of equity against your property
Ability to stop making payments in the future, if you prefer
Available to those who have been turned away by standard mortgage providers
Suited for those with good incomes who require an injection of tax-free cash
Most interest only or interest payment plans offer the same features as traditional lifetime mortgages
All lifetime mortgages are now regulated under the Financial Conduct Authority. Because lifetime mortgages are only available to those in their later years, all lifetime mortgages (and home reversion plans) require the applicants to receive financial advice from an equity release specialist, as well as independent legal advice. Because there are multiple equity release lenders each offering different products with access to various features, JNS Financial highly recommends that you get advice from a financial adviser who can offer recommendations from across the whole of the market, rather than restricted advice linked to only one lender. We will only introduce you to equity release specialists who are independent, therefore act in your best interests. For more information, please contact us today.