Later Life Borrowing
What Is a Lifetime Mortgage?
Types of Lifetime Mortgages
There are two main types of lifetime mortgages, each with distinct features. We’ll help you choose the option that best fits your needs.
Interest-Only Roll-Up Scheme
With this plan, you don’t make monthly interest payments. Instead, interest is added to the loan balance each month, causing the amount owed to grow over time. Although this means your debt can increase, most lifetime mortgages include a No Negative Equity Guarantee, ensuring you’ll never owe more than your home’s value. The loan and accrued interest are repaid when your home is sold—usually after your death or if you move into permanent long-term care.
Interest-Only Lifetime Mortgages
This option requires you to pay the monthly interest on the loan, typically at a fixed rate, keeping payments consistent and predictable. Since you’re covering the interest as it accrues, the original loan amount remains unchanged, helping preserve your home equity. The loan is repaid upon the sale of your home.
Am I Eligible?
If you’re over 55 and own your home, you may qualify to release equity—whether or not you have an existing mortgage. Many use these funds for home improvements, helping family, clearing debts, or enjoying life with travel or a new car.
We’ll explore all available options with you, including retirement interest-only mortgages and downsizing, to find the best solution for your needs.
Key Considerations
- A lifetime mortgage is a loan secured against your home, which must be properly maintained throughout.
- The loan is usually repaid when you pass away or if you permanently move out of the property.
- Taking out a lifetime mortgage may affect your entitlement to state benefits and age-related allowances.
- For roll-up interest plans, interest accumulates on the loan, which will cause the total amount owed to grow.
- There are limits on how much you can borrow and restrictions on the types of properties eligible.
- Borrowing against your home can reduce the inheritance you leave behind.
Costs Involved
Professional Advice Fees
At PTK-invicta, advice consultations are free until you decide to proceed with an application. Any fees will be discussed and agreed with you beforehand.
Legal Fees
You will need to appoint your own solicitor to handle the legal work.
Lifetime Mortgage Provider Fees
Many providers offer low-cost options, and some allow you to add fees to your loan amount.
Why Choose PTK Invicta?
With a wide range of lifetime mortgage products available, we tailor our advice to your unique needs. We’ll carefully assess your situation to determine if equity release is right for you and provide whole-of-market guidance to find the best solution.
As proud members of the Equity Release Council (ERC), we adhere to industry-leading standards designed to protect and support consumers throughout the equity release process.
Conclusion
Our mortgage advice aims to deliver tailored solutions that meet both present needs and future financial goals. A thorough review across a broad range of lenders – including mainstream banks, private banks, and specialist providers – ensures the best product is identified. Seeking guidance from a qualified adviser is essential to making informed decisions. Please get in touch to arrange an initial consultation.