SUE’S GUIDE TO Lifetime Mortgages
There’s been a big rise in the number of single ladies looking to release equity by taking out a lifetime mortgage.
One reason is that ladies in their 60s and 70s usually have much smaller pension pots than men of the same age, and often need other ways to fund their retirement.
So what is a lifetime mortgage? In a nutshell it’s a way to unlock some of the equity in your home without moving or downsizing.
And how much you can borrow depends on both your age and the value of your property.
It’s usually available to homeowners aged 55 or over and there are several big name companies offering this option.
With OneFamily you can borrow a lump sum of up to 50% of the property value and, with the average UK property now worth £226,000, this typically means up to £113,000.
Repayment options vary but you can opt for the mortgage repayments and interest to be repaid when your home is sold, when you die or go into long-term care.
And you can’t lose your home which can be a big concern for homeowners who are considering a lifetime mortgage. All members of the Equity Release Council offer a no negative equity guarantee which means even if the housing market crashes and homes drop drastically in value, you’ll never owe more than the value of your home or need to move out.