A Lifetime mortgage is an interest only mortgage available to the over 55’s. They are a mortgage that is secured against your home and do not have to be repaid until the borrow dies or goes into long term care.
The interest is fixed for life from the outset of the mortgage.
Prosper and your adviser will demonstrate the total costs relating to your lifetime mortgage, and will explain if this is a suitable product for you. If it is not suitable we will not allow you to have the mortgage.
Depending on your age would determine the maximum loan that could be available to you.
The amount you can have is determined by your age and the value of your home. You can have an initial sum and the have a draw down facility in the future should you need it. Below is some information regarding Lifetime mortgages but it is always best to have a free consultation with a Prosper Home Loans equity release and Lifetime mortgage adviser whom are CeRER qualified.
How do Lifetime Mortgages work?
A lifetime mortgage is an interest only mortgage which is not paid back until death or until the home owner goes into long term care. The interest is generally rolled up, but the client can pay the interest so the debt does not increase. The money can be used for any legal purpose or just to help increase your income and comfort in retirement.
How can a Lifetime Mortgage help me and my family?
You have worked all your life and have no mortgage or a small mortgage left on your property. You would like to take early retirement or have limited income in retirement and find it hard to enjoy your Autumn years. A lifetime mortgage can help you clear your existing mortgage with no more mortgage payments or can be used to release money to enjoy a cruise, holiday, new car, holiday home, repairs or improvements on your home. In fact, any legal reason.
You could also help your children or grandchildren buy their first home. This gives them the chance to create a future and best of all you can see them do this while you are still alive rather than them inheriting when they are old themselves.
Benefits of a Lifetime Mortgage?
You will always remain the legal owner of your home until you have sold it or until you or your partner go into long term care or pass away.
The Lifetime mortgage provider offers a guarantee that if you owe more at the end of the scheme, that the debt is not passed on to your estate or family.
The provider will fix your interest for the lifetime of the mortgage so you will not be affected by any hikes in interest and you will know exactly the costs involved.
You can choose to have an initial lump sum and a cash reserve to be able to call upon in future. You will only pay interest on the amount owed.
You can choose to pay the interest like an interest only mortgage or you can choose to not to pay and the interest will be rolled up and payable upon death or long-term care.
Lifetime mortgage could help reduce inheritance tax and some providers will offer an inheritance guarantee to safeguard a percentage of your home’s value to leave behind for your family.
Drawbacks of a Lifetime Mortgage?
Lifetime mortgage products are a lifetime commitment and should you change your mind the Early repayment charges could be substantial.
Interest is fixed for life but it can quickly increase if you decide not to make any contributions towards the mortgage.
You also need to consider potential tax and welfare benefits could be impacted by releasing funds. We will help guide you through this informing you of any potential problems.
Am I eligible for a Lifetime Mortgage?
Lifetime mortgages are available to anyone over the age of 55.
They are also available to help clients pay off an existing mortgage, clear debts, help out other family members with buying their first home etc.
There is no credit scoring so clients with not perfect credit scores would be considered.
What do Prosper Home Loans offer when arranging a Lifetime Mortgage?
We offer independent and impartial advice to make sure that your new product and provider is right for you. We will show you how a Lifetime mortgage will impact on you and the benefits of why this might be the best options for you. Ultimately you are the client and the choice are yours but it is important to have impartial advice with no pressure sales. An independent solicitor will also give you a second opinion so you can rest assured that you have made the right decision with your new Lifetime mortgage.
Who are the providers that offer Lifetime Mortgages?
Most lenders are starting to offer product transfers. We are registered with all the lenders and have access to the new rates offered on product transfers and exclusive products with have access to. Some of our product transfer partners are
Please ring Prosper Home Loans and speak to a qualified CeRER adviser and see what options are available to you. 01424 712333