[Lifetime Mortgages] What Are They?
There are more and more homeowners in the UK deciding to get lifetime mortgages to help boost their income for their later life.
However, many people are unaware of what a life mortgage actually is and what the benefits of choosing one are. This short piece of writing will help you decide whether a lifetime mortgage is the right option for you.
What Are the Different Types of Lifetime Mortgages?
Interest-Only Lifetime Mortgage
An interest-only lifetime mortgage is a type of equity release mortgage that can allow homeowners to access lump sums of cash from their properties. However, instead of rolling up the interest over a period of years, they pay off an amount of interest on a monthly basis.
The purpose of this type of mortgage is that it helps to reduce the amount of money required to pay back the equity release mortgage when homeowners pass away, and their property is sold. If you require further information about interest-only lifetime mortgages, then we recommend speaking with a mortgage advisor.
Flexible Lifetime Mortgage
With a flexible lifetime mortgage, homeowners have the choice to make voluntary payments to bring down their equity release mortgage amount. And, you will still be able to a lump sum of cash and keep your ownership of the property.
Roll-Up Lifetime Mortgage
A roll-up lifetime mortgage is a type of equity release mortgage where you can get a lump sum of cash with no monthly payments being made. This cash sum is completely paid off by the sale of your property when you pass away.
Enhanced Lifetime Mortgage
This type of lifetime mortgage can let you unlock even more cash from your property, and you may even qualify for a better mortgage rate. However, this type of lifetime mortgage is only available for those who suffer from certain medical conditions.
Why is A Lifetime Mortgage A Good Choice to Make?
If You Want to Move Home, Then You Can
A lifetime mortgage means that if change happens and your personal circumstances change then you are able to move home if you need to. One of the biggest perks of a lifetime mortgage is its flexibility.
However, when moving home, you need to be aware that the new property needs to meet the requirements of your mortgage provider.
You Still Own Your Property
Choosing a lifetime mortgage means that you and your partner will remain the owners of the property until you die. So, it’s great for security knowing that you will never be forced to move out of the property against your wishes.
You Can Still Leave Inheritance Money in Your Will
A lifetime mortgage is a great way to leave inheritance money when you pass away. When your property gets sold, the mortgage and the interest will be paid off. Any money that is left over can be gifted to your family.
A Lifetime Mortgage Can Help You in Many Ways
So, you can move home, still, own property, and leave inheritance money in your will. But what other advantages are there when taking out a lifetime mortgage? Read on.
It Can Help Increase Your Income
If you are retired, but your pension saving is not enough for you to live comfortably, then a lifetime mortgage can be a great way to give your income a boost.
Make Them Much-Needed Home Improvements
A lifetime mortgage can let you release a lump sum of cash that you can use to fund a new kitchen or for that dream garden makeover that you have always wanted. Or, if you are retired and starting to struggle to access certain things in your house, then you can use the money to adapt your home to your needs.
The Extra Cash Means You Can Treat Yourself
As working days get longer, people are busier than ever. There is no denying that we all deserve a much-needed holiday every now and then. A lifetime mortgage can help fund that much-needed rest.
If you are retired, then this can be a great way to treat yourself after your long years of work.
Author Bio:
Lloyd Parkinson is a Content Marketing Executive at Revive.Digital. Lloyd has experience writing content for the purpose of marketing on behalf of B2B and B2C organizations ranging from legal services, insurance brokers, and financial services, all the way to the music and entertainment industry. He conducts research and writes about an extensive number of topics. Lloyd aims to educate his readers through his creative writing by providing them with informative and valuable content. He seeks to simplify complex topics for general readers as well as write technical content for the well-informed.
