Equity releaseLifetime Mortgages
With a lifetime ( or “roll up” ) mortgage, you take a loan secured against the value of the property, interest accrues each month and is added to the loan until it comes to be repaid, usually when the home is sold either at your death or if you should move into long term care.
There are no monthly repayments to make as the loan plus accrued interest are repaid from the sales proceeds of the house. However, over many years this accrued interest can build to a significant sum. Although SHIP-approved plans offer a “no negative equity” guarantee, your ability to leave an inheritance cannot usually be guaranteed.
The main feature of a lifetime mortgage is that you retain full ownership of your home, meaning you or your estate benefit in full from any increase in its value.
Click here for your FREE Guide to Equity Release.