Do you dream of freeing up funds for a happy retirement, enjoying time doing things you’ve always hoped to do? I help people living in Lymington and the surrounding areas to do just that, with tailored advice that’s impartial and independent and focused on each client’s unique situation and goals.
There are many lifetime mortgage schemes that enable borrowers to take funds from their home’s value at relatively low-interest rates. Unlike the kind of loan you may have taken to help you buy your home, these lifetime mortgages do not have a fixed term. Instead, they are designed to run until you – or, if you co-own your property, the last of the co-owners – dies or moves into permanent residential care. For the duration of the loan, you can choose between paying the interest on it or leaving it to accumulate or a variation between the two. The loan is then repaid using funds from the sale of the property, with the remainder of the property’s equity being shared among any beneficiaries. Alternatively, your beneficiaries may choose to keep the house by clearing the debt using other funds.
I like to take time to get to know you. I always prefer, at some point in the process, to meet face to face, preferably in the comfort of your own home. I have your best interests at heart, and the advice I give is always impartial and independent. You won’t feel pressured, and I always suggest and encourage clients to talk everything through with family or perhaps a close friend.
Like any product, there are positives and negatives. However, when we have our appointment, I will go through all the aspects of these so you can make the best decision to suit you and your circumstances.
It is an important decision, and I will ensure we thoroughly explore all options and explain everything you need to know, so you can make an informed decision. As I have said before, I always encourage my clients to discuss this with friends and relatives, especially those who may already have looked at equity release. If you decide to proceed, I will find you the right product for your individual circumstances.
When it comes to the upside of the lifetime mortgage, one of the main ones is that you can live in your home, and indeed do with it as you wish. The property remains in your name until it is sold when the time comes. Speaking of the sale, there is a no negative equity guarantee, so you will never be in a position where the equity release is greater than the value of the home. Plus, there are products I can choose should you wish to protect the amount of equity your beneficiaries receive.
Once an amount of money has been agreed that you may receive, how you take that is completely up to you. You could withdraw the whole sum, decide to take a certain value every month or year, or simply withdraw money on an ad-hoc basis. The interest due can also be treated in similar ways. You can leave the interest to accrue, pay it off monthly, or pay some interest off on an ad-hoc basis if you felt like it during the term. would remain at a fixed amount for the duration.
As with most financial products there are terms and conditions to consider and I will set these out for you in full detail.
You retain ownership
The property will remain in your name until it is sold.
Your equity can be protected
You can choose a product that allows you to protect a certain amount of equity, so your beneficiaries are guaranteed an inheritance.
You won’t risk negative equity
Whatever happens to the value of your home, your beneficiaries will never have to pay more than the value of the property.
You decide how your money is released
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.
Repayments are optional
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.
There’s no pressure to downsize
Lifetime mortgages allow you to stay in the home you love and to use the money exactly how you wish.
Interest rates are fixed!
Interest rates are usually fixed for the duration of the loan.