Always speak to a qualified, specialist adviser before you go any further to see if a lifetime mortgage is right for you.
Your adviser will run through all of the benefits and risks of a lifetime mortgage before making any recommendations to you. Some of the key things to consider are:
- A lifetime mortgage, which is secured against your home, charges interest on the total amount of the loan including the interest that has already accumulated, so the total amount you owe will quickly increase, unless you choose to make payments.
- Taking equity from your home can affect your entitlement to certain means-tested State benefits.
- Although any cash you take from your home through a lifetime mortgage is free of tax, it may affect your personal tax position. Tax depends on personal circumstances and is subject to change.
- As the name suggests, a lifetime mortgage is a life-long commitment, which is only expected to be repaid upon your death or entry into long-term care.There may be substantial charges incurred if you decide to repay some or all of the loan early.
- Taking out a lifetime mortgage will reduce the value of your estate and therefore the amount of inheritance you are able to leave.
- If you have an existing mortgage on your home, you would have to use the money you release to pay off the existing mortgage first.
- Age and lending restrictions apply – some types of property are not eligible for a lifetime mortgage and more 2 life have our own underwriting criteria on which we base lending decisions.
- You should always think carefully before securing a loan against your property.
- A lifetime mortgage is not always right for everyone.