WHAT ARE LIFETIME MORTGAGES?
Considering a Lifetime Mortgage?
Have you tried extending your mortgage, but been told that you are too old?
Have you tried setting up a new mortgage, but been told that your income isn't enough?
Do you have an interest only mortgage that needs to be repaid soon?
If you are over 55 then maybe a Lifetime Mortgage could be the answer.
We are frequently asked what a Lifetime Mortgage is. The answer is quite easy, it is simply a loan that is secured against a property, just like any other mortgage. It is one of the most popular forms of equity release mortgage.
At Viva Retirement Solutions we believe that if we treat you as if you were a member of our own family – then you will receive the best possible advice, even if that means we advise you to do something that we don't offer. We will guide your through the whole process and advise you if we believe a Lifetime Mortgage is right for you and if it is not.
So what makes a Lifetime Mortgage different to the more conventional mortgages that are available on the high street? Well, they are designed for property owners over the age of 55 and are designed to run for the rest of your life.
They can be set up for you to make full or reduced monthly interest payments, but depending on your circumstances, you may not want to make any monthly payments at all. You can even have the ability to make partial repayments without penalty (subject to the lenders Term & Conditions).
For our customers one of the most important aspects is that you get to remain in your home, whilst releasing much needed funds.
This is vastly different from high street mortgages that tell you exactly how much you need to pay a month, when it needs to be fully repaid and that they can repossess your property if your circumstances change and you start missing your monthly payments.
There are no maximum age limits to some of the plans
Some providers of Lifetime Mortgages will assess how much they'll lend you based on criteria as simple as your age and the value of your property, not your income.
As its a Lifetime Mortgage, you don't have to worry about re-mortgaging again in the future as the lenders only ask to be repaid when you have died or had to go into long term care.
The amount you can borrow will depend on your property value (minimum £60,000) and your age (youngest has to be over 55).
Every situation is different and so we can tailor our bespoke advice using many different types of Lifetime Mortgages and Interest Only Lifetime Mortgages to meet your specific situation. Find out more about the different type of Lifetime Mortgages here.
Susan has been very informative, discussing all the advantages and risks associated with a lifetime mortgage. She worked fast to secure the best interest rate given the rate rises which were going on at the time of applying. Kept us up to date every stage of the process.
Mr C, Surrey 21/1/23
I was finding my bills rising and was very worries, I have no children and live alone so wanted to look into equity release, Dawn was recommended by my pension advisor. Dawn explained all about equity release and how it affects me. it is a lifetime mortgage and I could pay some of it, if I wanted. While I was working, I would get annual statements showing interest due and the amount owing if I sell my home or pass away. It has totally helped me by paying off my Mortgage and therefore allowing me to do some home improvements I have been wanting to do for years. I can also continue to live my life without having to give up going to the gym, going to the beautician and other things I like doing which, with the increase in the cost of living, I had to stop. Dawn ensured I totally understood the risks involved. Also the interest rate she obtained for me was a lot less than I was expected which I really appreciate.
Private, Yorkshire, 3/12/22
Shaun helped me to fully understand what is involved in taking out a lifetime mortgage, all associated costs, our options and any potential risks. Shaun was helpful, he listened to our needs and requirements. He was easy to communicate with and kept us updated throughout the process.
Mr Hopkins, Essex 24/8/22
We were considering a lifetime mortgage and wanted to deal with an adviser who could advise from a range of whole market plans. Gerard discussed our objectives in detail and recommended a plan to meet all those objectives. I felt he really understood what is important to us. With Gerard's help the application was a simple process, and after that Gerard made sure that the plan completed in good time to retain the rate quoted. Gerard is an excellent adviser - I could tell that he is passionate about matching the right plan to each client's individual needs.
Mrs Cox, Surrey, 16/8/22