FAQS Lifetime Mortgage

How old do I have to be to take out a lifetime mortgage?
With a Lifetime Mortgage, you must be aged 55 years or more. With a joint application, it is the age of the youngest applicant that counts towards this requirement.

Do I have to make monthly repayments if I take out a lifetime mortgage?
This decision is completely up to you and your personal circumstances.  You can choose to pay the interest monthly, make adhoc payments, or simply allow the interest to accumulate.

Will I leave any debt to my heirs?
You are guaranteed to never owe more than the value of your property, so your heirs will not inherit a debt that your estate cannot cover.

When you pass away or go into full time care, the lender typically allows 12 months for the heirs to sell the estate. Your heirs could even choose to repay the loan amount from their own assets if they would prefer to keep the property in the family.

How much equity could I release?
The amount you can free from your property depends on the value of the property, your age, and with some lenders any underlying health issues may enhance the terms available. Money can be taken as a one-off lump sum, or in stages by way of a drawdown facility. The funds you raise are tax-free and can be used for any purpose you require. Although, if you have an existing mortgage or secured loan this would need to be settled with the proceeds.

Who owns the property?
With a lifetime mortgage, you retain ownership of the property. There is simply a first charge over the property much the same as a conventional mortgage.

Does it matter what level my income is?
With a lifetime mortgage your income level has no bearing on how much you can receive. This is simply based on your age, property value, and in some cases health & lifestyle. However, we will ask your income details to ensure that by releasing funds it does not have an adverse effect on any means tested benefits you may receive.

FAQS Retirement interest-only mortgages

What is a retirement interest only mortgage?
A retirement interest-only mortgage is only available on your main residence and is very similar to a standard interest-only mortgage, with two key differences. The loan is usually only paid off when you die, move into long term care, or sell the house. You only have to prove you can afford the monthly interest repayments.

Do I have to pay monthly interest?
Yes. A retirement interest only mortgage differs to a lifetime mortgage in that you must make monthly interest payments and be able to demonstrate long term affordability of the interest.

We understand that you may have many questions around lifetime mortgages and the process. Feel free to contact us for a no obligation chat.

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances, but we estimate it will be £995.

The guidance and or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

John MacAskill, t/a Highlands & Islands Retirement Mortgage Solutions is an Appointed Representative of HL Partnership Ltd, which is authorised & regulated by the Financial Conduct Authority.

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