Lifetime mortgage - Equity Release
Lifetime Mortgage - Mortgage based equity release .
Generally, you take out a loan, known as a Lifetime Mortgage, against the value of your home. This is paid to you as a lump sum or in the form of income.
The loan, known as a Lifetime Mortgage, is secured over your home and attracts interest over the years, like a mortgage. The interest added on the Lifetime Mortgage can either be fixed or variable.
The difference is that no payments are made on the Lifetime Mortgage to the lender until death or if you go into a nursing or residential home.
Your home is then sold and the debt of the Lifetime Mortgage repaid from the proceeds.
Any money left over after the repayment of the Lifetime Mortgage is retained by you or your estate.
With this Lifetime Mortgage option, you remain the owner of your home.
