A lifetime mortgage is a loan secured against your home. You don’t have to make any repayments but some providers give you the option to do so. The loan and the interest doesn’t have to be paid back until you die or go into long term care.
Drawdown lifetime mortgages work in the same way as general lifetime mortgages but with added flexibility.
After taking an initial release amount you can then choose to ‘drawdown’ further cash in stages as and when you want to. The interest is only added on the amount released so it adds up more slowly than it would if you released the full amount at outset. This is a flexible option and can form an essential part of planning your future finances.
If you or your partner have any health or lifestyle conditions you may be able to release more money from your home.
Health issues such as diabetes, heart problems or high blood pressure are typical examples where you could qualify for an enhanced equity release plan. The same also applies to lifestyle factors such as heavy smoking. You may miss out on thousands if you choose an adviser who cannot advise on this.
If you want to guarantee an inheritance for your family, this is now possible with some lifetime mortgages.
For example, a couple who are able to release £50,000 and want to ensure their grandchildren are left with an inheritance could take £30,000 (60% of the maximum available) leaving 40% of the property ‘protected’.
Flexibility within lifetime mortgages means you could benefit from the many available options to not only save your estate money but also tailor your plan to your current and future needs.
For example: If you want an inheritance for your family and need lump sums over the next 15 years, you may be able to have a protected plan with a drawdown facility.
Retirement Line do not provide an equity release service. If you are at all unsure of which options suit you, we can refer you to an independent equity release specialist.
Call us now to arrange a meeting with an equity release specialist on 0800 652 1352.