A Lifetime Mortgage (often referred to as Equity Release) is a way of getting cash out of your property without the need to move and in many cases without the requirement to make monthly payments to the lender.
It is also possible to move to a new property by way of an Lifetime Mortgage on your new home.
Reasons why you may wish to consider a Lifetime Mortgage:
- repay an existing Interest Only mortgage that is coming to an end
- repay an existing mortgage that has become unaffordable
- raise funds to improve your property
- raise funds to modify your property because of a disability
- provide funds to children or grandchildren to purchase a home
- raise funds to improve your standard of living
Capital can be raised in one lump sum or in smaller tranches. You can elect to have no monthly mortgage payments and have the interest 'rolled up' on top of the initial capital raised. Alternatively, some products allow you to pay the interest monthly so that the debt never increases or you can make lump sum payments to reduce the capital balance.
The initial loan plus the interest (if applicable) is repaid to the lender on the following events :
- you sell the property in your lifetime and do not require the mortgage
- you die
- you enter permanent long care
A Lifetime Mortgage may not be the only solution to your situation, so we will discuss with you any alternative solutions that may be available to you before you make any decisions.
We also recommend that you discuss your situation with your family who are welcome to attend any meetings or conversations that we may have.
Lifetime Mortgages are only available to those age 55 or over.
The Equity Release Council
The Equity Release Council represent the equity release sector and exists to promote high standards of conduct and practice in the provision of and advice on equity release which have consumer safeguards at its heart. All of their members have agreed to abide by the Council rules and have signed up to the Statement of Principles.
Hallmark Financial Services Ltd are proud to be a full member of the Equity Release Council.
Please contact us to discuss your situation and requirements.