Where can I get info on Lifetime mortgages?

Posted on 4 May 2008

Hi Katie. How does a life time mortgage work. I am 72 and own my property but would like to free off some of its value. PRD

Hi Peter, I'm afraid Charcol don’t advice on these so I can’t give you any specific details.  Very  basically a lifetime mortgage, or “Equity Release” mortgage or “home reversion scheme” is one where you are loaned a lump sum, and instead of paying interest on it as you would with a normal mortgage, it accrues against the value of the property and that proportion of the property passes to the lender on your death.   One risk is that  the whole property could pass to them, and you will have nothing to pass down in inheritance, so it’s really important to agree favourable terms and conditions before you sign up.

Please contact Safe Home Income Plans www.ship.org for information, and to find out if this sort of plan would suit you.

 

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Question