Lifetime mortgages explained: Talk to our advisers in Kensington & Chelsea
Are you thinking about how you can have more financial freedom to enjoy your retirement? Our equity release advisers can offer clients in Kensington and Chelsea expert and independent advice. Lifetime mortgages enable you to release tax-free funds from your home without having to move and the property will remain in your name. This is the most popular form of equity release and offers an affordable and flexible way to release money.
With literally hundreds of products available, lifetime mortgages are also very competitive, with low interest rates. Interest can either roll up or you may choose to pay off the interest every month. Unlike residential mortgages, lifetime mortgages have no fixed end date and will run until the remaining homeowner dies or moves into residential care. At that point the property can then be sold, or the beneficiaries can raise the finances to repay the lender, either from sale proceeds or via a new mortgage. If the property is sold, the any remaining equity is passed onto the beneficiaries
Our equity release advisers can offer you personalised and confidential advice in the comfort of your own home. We take time to get to know you, will never pressurise you into making a decision and encourage you to get family and friends involved, if you wish to. Our advice is impartial and independent and we always have our clients’ best interests at the heart of everything we do.
For more information or to book a free consultation, please call us now on 0203 840 5011.
Lifetime mortgages: What you need to know
The disadvantages of a lifetime mortgage include the fact that the amount of inheritance for your beneficiaries is reduced and the cost of the initial loan will grow over time if the interest is not paid off. In addition, means-tested benefits may be affected and early repayment charges can sometimes apply. It is an important decision, and our experts will thoroughly explore all the options and explain everything you need to know, so you can make an informed decision.
If you decide to proceed, we have access to the whole of the market and can use our expertise to find the right product tailored to your individual circumstances.
The benefits of lifetime mortgages
- Retained ownership: The property will remain in your name until it is sold.
- Protected equity: You can choose a product that allows you to protect a certain amount of equity, so your beneficiaries are guaranteed an inheritance.
- No negative equity guarantee: Whatever happens to the value of your home, your beneficiaries will never have to pay more than the value of the property.
- Choose how to receive the money: You can choose how to receive the money that is released. This can be in a lump sum, in regular payments, or a combination of the two. You can also opt for a drawdown facility that enables you to take out ad-hoc sums in the future. Interest will only start to accumulate once you actually receive the money.
- Nothing to repay (unless you wish to): You do not have to repay any of the money or interest until the last person moves into long-term care or passes away. However, if you wish to service the interest monthly or in ad-hoc repayments, you can do this.
- You do not need to move home: Lifetime mortgages allow you to stay in the home you love and to use the money exactly how you wish.
- Fixed interest rates: Interest rates are usually fixed for the duration of the loan.
Would you like to talk to an equity release specialist?
If you would like to talk to an expert about lifetime mortgages in Kensington and Chelsea, we would be delighted to book a consultation with you. Please call us now on 0203 840 5011 or email mwade@equityreleasekensington.co.uk
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