Interest Only Life Time Mortgages
The interest only lifetime mortgage benefits people looking to consolidate their existing mortgage and secure the balance for the rest of their life.
Equity release will reduce the value of your estate and can affect your eligibility for means-tested benefits.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The benefits of an Equity Release Plan
Most plans now feature much more flexibility than in the past. Here are just some of the features:
You may continue to own your home so you will benefit fully from any future increase in its value. There are also guarantees with some plans to make sure you never pass on any debt, or ‘negative equity’, in your estate — simply choose a plan that has an option to be ‘portable’ (so you can move home in the future).
The interest-only lifetime mortgage benefits people looking to consolidate their existing mortgage and secure the balance for the rest of their life. These forms of equity release home loans have a roll-up interest principle, whereby the interest is compounded, meaning that the balance increases each month. If you don’t like the idea of the interest rolling up, you can choose to repay the interest monthly; this way the original amount borrowed remains the same.