Later Life Lending
Later Life Lending / Equity Release
Equity Release services – Key Reasons to use ourselves:
- Whole of Market advice
- We will assess your needs & circumstances
- Offer a FREE Initial consultation
- FREE Later Life Lending guide
- Search across all available Lenders
- We are NOT tied or affiliated to just one lender.
A Lifetime Mortgage or lending in retirement, may well be the last mortgage / major financial decision you make.
Do you owe it to yourself to know that you have had truly IMPARTIAL advice from an advisor NOT tied to / or having links to their OWN lender?
Later Life Lending services
Aged 55+ ?
Later Life Lending covers lending options for those aged 55+, including; Retirement Interest Only Mortgages, Lifetime Mortgages and Equity Release.
One of the main types that is commonly known to most people is Equity Release, this is a lifetime mortgage, which is a loan secured against your home. Typically the loan and compound interest is repaid when the last borrower dies or moves into long-term care.
Lifetime mortgages and equity release need to be given careful consideration, please contact us and we will discuss your options and how each product works. So that you are in an informed position, before committing to anything.
With a lifetime mortgage you don’t have to make any monthly payments. Instead the interest is added to the amount you owe each month.
This means interest will be charged on the loan plus any interest already added. The lifetime mortgage is usually repaid from the sale of your home when you, or the remaining applicant (if the mortgage is in joint names) dies or moves out of your home into long term care. Of course, any money left over would go to your beneficiaries.
Your lifetime mortgage can move with you, subject to term and conditions of your lender. You must discuss moving home with your lender before committing to a purchase.
Property values may change, and any fall in value will affect the equity available to you or the beneficiaries of your estate. Your lenders No Negative Equity Guarantee means you or your beneficiaries will never have to pay back more than the amount your property is sold for. This is provided it’s sold for the best price reasonably obtainable and you have met your lenders terms and conditions for your lifetime mortgage
A lifetime Mortgage offers you a cash sum as the initial loan. If you choose to take less than the maximum amount you’re eligible for, you may have the flexibility to borrow more in the future. You may be able to borrow up to the maximum originally agreed. This could be in one cash sum or a number of smaller amounts. If there is no Drawdown Facility available you may need to apply for a further advance. This is additional borrowing on top of your existing lifetime mortgage. Applications for further advances may be considered 12 months after completion of a lifetime mortgage. Any further borrowing must be on the same basis as an existing lifetime mortgage. The interest rate may be different depending on interest rates available at the time of requesting further advance. The difference between the initial cash sum you take and the maximum amount you could take is called Drawdown Facility
For equity release – there are no income requirements, unless you opt to make monthly payments, in which case lenders will check its feasible.
For RIO’s or mortgages in retirement, the same rules for mortgage affordability apply, IE you must have enough income to prove you can maintain the mortgage payments. Often lenders currently cite that as the last person remaining can still afford the mortgage.
Unlike schemes in the 80’s and 90’s the equity release and lifetime mortgages now come under the control of the Financial Conduct Authority ( FCA )
There are also several safeguards, such as no negative equity guarantee’s, right to remain in the property for life etc, that has made these much more robust products for today’s consumers.
Later Life Lending
Equity release includes Lifetime Mortgages and Home Reversion Schemes. We can advise and arrange Lifetime Mortgages and will refer to an approved specialist for Home Reversion schemes’. Equity Release and lifetime mortgages mean you still OWN YOU HOME,
Home reversion plans – involve selling your property and leasing it back – as this is a very niche product, we will pass you onto others for advice on Home Reversion products.