Lifetime Mortgage Plans:

A Lifetime Mortgage is a form of Equity Release that allows you to borrow a sum of money secured against your home to spend as you wish, whilst enabling you to you remain in your home for the rest of your life. Money you release can be taken as a cash lump sum, regular monthly payments, drawn down as required, or a combination of these, and you may also have the option to release further cash in the future.

As fully qualified Equity Release Specialists, SYH Charterhouse will research the entire Equity Release market in order to source the most appropriate plan to best suit your requirements. Listed below are a number of Lifetime Mortgage products that are currently available. The terms of the Lifetime Mortgage plans can vary between providers, and there are many that factors you will need to consider before you proceed. For more information about which Lifetime Mortgage might best suit your particular circumstances, please contact us for a no obligation discussion.

Roll-up Interest Lifetime Mortgage

With a Roll-up Interest Lifetime Mortgage, you can elect to release money as either a cash lump sum or in regular instalments. This form of Lifetime Mortgage does not require you to make any repayments, instead “rolling-up” the interest and adding it onto the initial loan amount. When you pass away or move out of your home, the property is sold and the money from the sale is used to pay off the original loan plus any interest that has accrued over the loan period.

Drawdown Lifetime Mortgage

A Drawdown Lifetime Mortgage plan allows you to release equity from your property in multiple stages. This means that you can draw down the cash advances you require when you like, from a maximum amount available. Interest is only charged on the amount that you have elected to drawdown, and is rolled-up and added to the loan amount. When your home is sold, the total drawn-down loan amount and the rolled-up interest, is repaid.

Interest-Only Lifetime Mortgage

With an interest-only Lifetime Mortgage, you release a cash lump-sum upfront and pay monthly interest on the loan. This means that, providing you continue to pay the interest over the course of your lifetime, the loan will never be greater than the amount that you originally released. This amount is repaid when your home is eventually sold.

Fixed-Repayment Lifetime Mortgage

A fixed repayment Lifetime Mortgages enables you to release a cash lump from your property, but unlike most other Lifetime Mortgage plans the original loan amount does not accumulate interest over time. Instead, when the house is eventually sold, the lender receives a higher amount than you originally borrowed from them. This amount is agreed in advance with the lender, and is used repay the loan on the sale of the property.

Advantages of Lifetime Mortgages:

You can release a tax-free cash lump sum, regular income, drawn down as required, or a combination of these
You retain the ownership of your home
Some plans allow you to guarantee an inheritance
Most plans do not require any monthly repayments to be made
Some plans offer multiple cash releases as you require
All plans offer a No Negative Equity Guarantee
All plans are regulated by the Financial Services Authority
Applicants aged 55 or over are eligible

Disadvantages of Lifetime Mortgages:

Roll-up interest can accumulate quickly
The amount you leave as inheritance will be reduced
Some providers apply an early repayment charge if you wish to settle your loan during your lifetime
You are often unable to release as much money with Lifetime Mortgage as you could with a Home Reversion plan
Your tax position and eligibility for state benefits may be affected

For a more detailed overview of the points to consider before proceeding with a Lifetime Mortgage plan, please visit Considerations.

Equity Release may involve a Lifetime Mortgage or a Home Reversion plan. To understand the features and risks, please ask for a Personal Illustration.*