Frequent question: Can I switch my lifetime mortgage?

Can you sell your house if you have a lifetime mortgage?

Having a lifetime mortgage does not mean that the lender owns the property. So it will not be up to the lender to sell your mother’s home, it will be up to your mother to get an estate agent to sell it at whatever price he or she decides is appropriate.

Can you downsize with a lifetime mortgage?

You could sell up and downsize to a smaller property or, if you’re 55 or over, release the equity you’ve built up without having to move, by taking out a loan secured against your home, often referred to as a lifetime mortgage.

What are the disadvantages of a lifetime mortgage?

The initial loan will increase over time as interest is rolled up and added on a cumulative basis. Early repayment charges can sometimes apply. Eligibility for means-tested benefits may be affected. Generally you cannot raise as much capital as with some Home Reversion Schemes, to which reference is made below.

How can I get out of my lifetime mortgage?

When taking out a lifetime mortgage, you can choose to borrow a lump sum at the start or an initial lower loan amount with the option of a drawdown facility. The flexible or drawdown facility is suitable if you want to take regular or occasional small amounts, perhaps to top up your income.

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What is the difference between equity release and a lifetime mortgage?

What’s the difference between equity release and a lifetime mortgage? Equity release enables homeowners to retain the use of their home while obtaining an income or funds from it. A lifetime mortgage is one of the two main types of equity release products, the other being a home reversion plan.

Is it better to downsize or do equity release?

Downsizing is a debt free way of getting your hands on your hard earned cash but it does mean moving away from what is possibly the family home. Equity release on the other hand means you can stay where you are but it will impact any inheritance you plan to leave to family.

Can you sell a house with equity release?

Many standard equity release schemes allow you to move your mortgage to a new property if you decide to sell your house, provided the lender approves the property first. … In this situation, you may have to repay some of the mortgage early, potentially triggering early repayment charges.

Are lifetime leases a good idea?

Secure the perfect home and save money

Choosing a Lifetime Lease means you could pay up to 59% less than the market price to live securely in your new home without rent, mortgage or any interest repayments for your lifetime.

What is the alternative to equity release?

There are many alternatives to Equity Release, which I always explore with clients. These include: Selling assets, remortgaging, asking for help from family and friends, grants, moving to a cheaper home, state benefits, renting a room, budgeting, changing employment, or simply doing nothing.

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What is an over 60’s lifetime lease?

Lifetime leases are essentially legally binding agreements that let a person (or people) live in a property mortgage-free and rent-free for the rest of their lives. … These lifetime leases are most popular with over-60s who want to move to a property that they otherwise might not be able to afford.