In a nutshell they allow homeowners over the age of 55 to take out a mortgage on their property where they do not have to make any monthly payments back to the lender if they do not want!!
Lifetime Mortgages are so popular because these days they are very flexible and cater for many different situations and circumstances. The main reasons that people take out these type of plans are to repay an existing mortgage that is coming to the end of its term, to buy a more expensive home, to improve lifestyle and have more holidays and financial freedom, to pass money to children and grandchildren now and to reduce Inheritance Tax, to name but a few!!
You can choose to pay back Interest, interest and capital or even nothing at all and instead let the interest add to the loan taken. This means that you do not have to prove that you have a certain level of income as these plans are based purely on age and property value in the most part.
For these reasons more and more people are turning to this type of plan when they get towards, or are in, retirement.
If you are thinking that this might be an option for you, your friends or even your own clients, then we suggest that you contact us so that we can tell you everything you need to know and also assess if these plans might be the right solution, as each situation is different.
Could this be the answer to your situation???