Interest Roll Up Lifetime Mortgage
If you own your own home, are aged over 55 you could be eligible for a cash release or a regular income produced from your house.
The benefit is that you can use the money for your own use and you do not have to make any payments back to the lender.
They will simply add the interest to your loan each month. When you sell the house or have passed away and your estate is being wound up, the loan is then repaid to the lender, including the interest due.
This means you can continue to enjoy your life style whilst in retirement, benefit from continued use of your home, and can still pass on the remaining equity to your family.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
A Lifetime Mortgage involves borrowing against your home. There may be more suitable methods of raising the funds your need.
A Lifetime Mortgage may work out more expensive in the long term than downsizing to a smaller property. Releasing equity from your home may affect your entitlement to state benefits and grants.
With this type of lifetime mortgage, every year interest is added to the amount you owe. This will reduce the remaining equity in your home. If you live a long time or house prices fall, there may be no equity left for your heirs to inherit.
We can be paid by commission or a fee. The precise amount will depend on your circumstances but will be typically around £500
The Financial Services Authority do not regulate some forms of equity release schemes.
