Another way of using the equity in your home, is to purchase another home. You may be mortgage free, or you may still have a mortgage and struggling with the payments due to a limited pension fund. This way, you can re-pay your current mortgage, move home and use your lifetime mortgage to fund the new purchase.
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
Lifetime Mortgage Frequently Asked Questions
A lifetime mortgage is a type of equity release that allows you to access some of the equity that’s tied up in your home. It’s a long-term loan that’s secured on your property. Even though it’s a mortgage, you don’t have to make regular repayments. The loan and interest will be paid back in full, usually by selling your property when you (and your partner if it’s a joint lifetime mortgage) die or move into long-term care. You’re charged interest on the amount you borrow as well as on the interest that’s already been added, which quickly increases the amount you owe. Taking out a lifetime mortgage will reduce the amount of inheritance you are able to leave and may affect your tax position and eligibility for welfare benefits.
Yes, many products allow you to make additional payments. You can choose to just cover the interest so that the balance does not increase, or you can choose to pay another amount. There is usually a limit on how much you are able to repay without incurring an early repayment charge. Many products are flexible and will allow you to vary the amount that you pay and/or even stop and start your payments.
Yes, everything will be much the same as it is now. You just need to make sure that your home continues to be insured and kept in good shape. You can then remain in your home until you pass away or go into long term care.
In most cases, the sale of the house is when the lifetime mortgage is repaid. Should you go into long-term care, it will be you or your solicitor who manages the sale. If you live in your home until you die, it’ll be sold by an executor looking after your estate if you have a will – or by administrators if you don’t have one. Any money that’s left afterwards belongs to you or your estate.
You might be able to borrow more later if your home goes up in value or you don’t borrow the full amount that’s available to you at the start, subject to our lending conditions at the time. The interest rate is calculated on any extra amount that’s released when we get your application. The terms and conditions that apply to any additional borrowing will be the ones applicable at the time – they might be different from those that applied to your previous borrowing.
Yes. Equity release has many safeguards and is regulated by the Financial Conduct Authority (FCA).The FCA is an independent organisation, and it reports to the Government, helping to make sure that financial products offered to the public are fair and meet certain standards. Steeples Mortgages are also a member of the Equity Release Council – an organisation set up in 1991 to help protect people taking out equity release. We make sure we meet the standards set out in their Statement of Principles.
You’ll need to get legal advice when you take out a Lifetime Mortgage, so the time it takes to finish your application can vary. Typically, once we have submitted your lifetime mortgage application it takes about 6-8 weeks before you get your money.
Yes, we have arranged Lifetime Mortgages for clients looking to move property in the past. The new property needs to meet the lenders criteria and the application is based on the same information required for if you were releasing equity from an existing property.
Rest easy knowing that we won’t ever rush the process and you’ll have plenty of time to think about your options. Family members are welcome, and in fact encouraged, to come to our meetings so they know what’s going on too, and you won’t be pressured into signing anything. You can pull out during the application process, as long as it’s before you sign the contractual agreement.