It doesn’t have to be taken all as a lump sum.
The products have undergone changes throughout time, eliminating the necessity of receiving the funds in a single, lump-sum payment. Nowadays, most providers grant the option of utilizing a drawdown feature. This enables you to withdraw an initial amount at the beginning and have the ability to withdraw additional funds whenever necessary.
This arrangement offers the advantage of solely incurring interest on the withdrawn funds, rather than on the funds stored within the drawdown facility. Consequently, you avoid paying interest on funds intended for future use.
You can still move home / downsize
The products are flexible
Although it is customary for lifetime mortgages to accumulate interest onto the loan, there are alternatives to “service” the interest. This can be achieved by either making regular monthly payments or by voluntarily making occasional overpayments within predefined yearly limits. These options help mitigate the effects of accruing interest on the loan.
You can use equity release to purchase property
The common belief, shared by both individuals and those in the financial services sector, is that a lifetime mortgage is exclusively applicable to those who already possess a property. However, this is not accurate. A lifetime mortgage can also be utilized to buy a property. Therefore, if you’re searching for your ideal home in your later years, you needn’t feel limited by the funds in your bank account or the proceeds from the sale of your current property.
It is not without risk or negative impact.
No negative equity guarantee
Book a Consultation
Come and have a no obligation chat with our expert advisor.