Lump Sum

Lump Sum lifetime mortgages are the simplest lifetime mortgages to understand. A lender provides you with a lump sum of money and this loan is secured against your property. Interest compounds on the lump sum amount, as well as on top of any interest charged. Interest will keep compounding until the loan is repaid from the future sale of the property.

There are different variations of lump sum mortgages, but all provide you with one single lump sum payment on completion of the lifetime mortgage, with no access to further funds in the future. The interest rate is usually fixed for life however some products charge a variable interest rate instead, and can be slightly lower than an equivalent product that offers a drawdown facility. Because you do not have access to further funds (without taking out a completely new lifetime mortgage) this type of mortgage is often preferred by people who do not anticipate requiring further funds in the future, and do not need access to a suplemental income throughout their retirement.

Key Features

  • Provides a large tax-free cash lump sum to use as you wish

  • Allows you to consolidate and pay off loans and credit cards, allowing more financial freedom

  • Some products offer an inheritance guarantee feature to help limit any further erosion of your estate

  • Voluntary payments can be made in order to reduce the amount owed

  • Available to those with poor credit histories, with no affordability checks

  • Can help mitigate inheritance tax liability if recommended through an IHT specialist

  • Can be used toward Buy-to-Let properties, holiday properties or second homes

"retire in comfort..."

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 applicants to receive financial advice from an equity release specialist, as well as independent legal advice. Because there are multiple equity release lenders 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 one specific lenders range. 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.

JNS Financial Ltd is a limited company registered in Wales at 16 Station Road, Llanrwst, Conwy, LL26 0EP, under company number 11931412. JNS Financial Ltd provides access to a range of retirement services from specialist providers including The Right Equity Release, The Right Will and Safe Hands Funeral Plans. JNS Financial Ltd is not regulated by the Financial Conduct Authority (FCA) and is not authorised to give financial advice. However, we are proud to introduce you to The Right Equity Release Ltd who are regulated by the Financial Conduct Authority, for all of your Equity Release, Mortgage and Protection requirements. The Right Equity Release does not charge any up front fees and a fixed fee is only charged on completion of an Equity Release Plan. Typically, this is 1.5% of the total facility or £1,295 whichever is the greater. All information published on is intended for consumers based in the UK as general information only, and does not constitute financial advice. Please contact JNS Financial on 01492 818589 for further information.

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