If you are approaching later life and looking to find ways to finance your way through the pandemic Enable’s IFAs in Bishop’s Stortford can help you look at your options. Recently Lifetime Mortgages have started to become more and more common as property owners look to release some of the cash locked up in the value of their homes.
Lifetime mortgages are only available to homeowners aged 55 and over. It is a mortgage that offers a kind of equity release that has become an increasingly popular way for retirees to access tax-free cash to boost their pensions or fund home improvements. With a Lifetime Mortgage, there is no need to pay the money back until after the borrower goes into long term care or has passed away.
The money borrowed of course has to accrue interest and the amount of interest borrowers owe can build up quite quickly so this is the detail to consider. But over the years as more and more lenders have come to offer lifetime mortgages and their average fixed interest rates have also reduced.
There is also now a much wider range of providers now than there has been. The traditional equity release lenders such as Canada Life and Legal and General have been joined by high street names such as Nationwide Building Society, Santander, TSB and Lloyds Bank. Nationwide Building Society first launched their range of lifetime mortgages in 2019, by offering these to its existing members and then expanded this to all members of the public.
The maximum amount of borrowing depends on the borrower’s age and the value of the property in question. There are often fixed interest rates for the life of the mortgage with more and more options for borrowing coming online from a variety of lenders. In 2020 Moneyfacts awarded more than 30-lifetime mortgages from Canada Life with a top-five- or four-star rating for their products. Enable’s experience IFAs can help you look for the right Lifetime Mortgage to suit your circumstances.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage