How To Get Mortgages, Re Mortgages and Lifetime Mortgages

Lifetime Mortgage Q&A

Lifetime Mortgage Common questions – Answered 


1) If we choose an interest lifetime mortgage, what happens to our payments if one of us dies? 

  • The remaining borrower can choose to continue or stop paying the interest payments. If you decide to stop, your lifetime mortgage will convert to a full interest roll-up basis. (Lender specific)

2) Can we still leave an inheritance to our loved ones? 

  • When your property is sold the loan plus any interest accrued is repaid. Any money left over could be left to your loved ones.

    Some Lenders offer a ‘Protected Equity Guarantee’.This allows a percentage of your property’s value to be safeguarded as an inheritance for those who matter to you most.(This answer is relevant to the Lifetime mortgage.
    Our regulated partners do not advise on Home Reversions Plans.)

3) Can I move house once I’ve taken out the plan? 

  • The plans are portable, meaning you can move to a new property and take the loan with you, as long as your new property meets the lenders criteria.

    The lenders provide a tariff of charges which explains the fees that apply when you move.

    If your new property has a lower value than your existing property, part of your lifetime mortgage may have to be repaid.(This answer is relevant to the Lifetime mortgage.
    Our regulated partners do not advise on Homer Reversion Plans.)

4) Will I lose any ownership of my home? 

  • No. With a lifetime mortgage you retain 100% ownership of your home. (This answer relates to Lifetime mortgages only.
    Our regulated partners do not advise on Homer Reversion Plans.)

5) I have had health issues in the past, will this affect my application. 

  • Health is taken into account when we access your application. Some lenders offer enhances plans for customers that have had health issues.

6) What are our obligations? 

  • You are required to live in and keep your property in a good state of repair for the duration of the loan.You are required to inform the lender, if anyone not party to the loan moves into the property.Your property must be adequately insured for the duration of the loan. Further obligation details are provided in the offer document.

7) Can the provider take my house away from me? 

  • Whatever the plan you choose, you have the right to stay in your home, depending on the terms of the plan, until you die or choose to permanently leave the property or move into long term care.

8) Will we benefit from any future increases in our property’s value? 

  • You retain 100% ownership of your home and so will benefit from any future increase in your property value. (This relates to the Lifetime mortgage product only.

    Our regulated IFAs do not advise on Home Reversions Plans which work differently.)

9) What will it cost? 

  • We offer a free, no-obligation quotation, giving you the chance to see whether equity release could help you.We work with total independent specialists, giving you access to plans from the whole of the equity-release market.

    Our regulated partners offer initial advice for free and without obligation.

    Only if you choose to proceed and your case completes would a typical fee of 3% of the amount released be payable.

    lifetime mortgageUse our Free Mortgage Pathway Calculator on the right and see how much you could raise today with a lifetime mortgage!

 
The Mortgage Pathway © 2014 (((Please note that Mortgage Pathway offer no advice on lifetime mortgages, mortgages or pensions and will refer your details to their qualified, FCA regulated partners, who can offer professional advice, suitable for your circumstances and provide an illustration.))))