Lifetime Mortgages
With a Lifetime Mortgage you can borrow an amount of money in the form of a mortgage against your home. You can either take the full amount or withdraw it as needed, which helps to minimise the amount of interest you owe.
Once any outstanding mortgage is settled, the money can be used any way you wish. It is similar to a secured loan where the amount you lend is secured against your homes value and can be paid off when the property is sold.
You can continue to live in your home without paying any interest during your lifetime. Compound interest is added to loan capital and paid off when the last surviving partner moves to a nursing home or dies.
Advantages
- With Lifetime Mortgages you own your home and benefit from any increase in value.
- Depending on loan size and length it is still possible to leave equity to the benfectors of your estate.
Disadvantages
- Early repayment charges may apply if you wish to repay the loan early.
- The interest you owe will increase over time although it can be reduced by releasing money gradually.
Cestria Capital offer financial advice on a range of products, including lifetime mortgages, that will suit your individual circumstances. Contact us now for professional advice on a range of equity release solutions.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.