![]() The loan is usually repaid when you die or move out of the home and into long-term care. ![]() When do I have to repay the full amount of the loan? Minimum additional loan amounts for each releaseĭetermined by your age and property value. £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties. You may have to pay an Early Repayment Charge to your existing lender if you remortgage. Usually the interest rates for a lifetime mortgage are higher than the rates charged for a traditional mortgage. If you're receiving certain means-tested state benefits, taking a lifetime mortgage could impact your entitlement to these benefits. If you choose to repay all or a significant part of the loan early, there may be an Early Repayment Charge. If you gift the money, the recipient may need to pay inheritance tax in the future. There may be cheaper ways to borrow money.Įven with our Inheritance Protection option, releasing equity with a lifetime mortgage will reduce how much you can leave as an inheritance. If you choose not to repay any interest until you die or move permanently into long-term care, the interest can rapidly build up over time. Whatever happens you'll never repay more than the value of your home when it is sold - even if that's less than the amount owing. Part of the value of your home can be passed on if you choose our Inheritance Protection option. So long as the new property is acceptable to us. With equity release, you don't need to downsize and can stay in your home until you die or move permanently into long-term care. You can also choose to repay part of the original loan. If you prefer, there's an option to repay some or all of the interest. ![]() Unless you choose otherwise, there's nothing to repay until you die or move permanently into long-term care. You can use the money you release for home improvements, helping children buy their first property or increase your income in retirement. Please make sure you click on the information buttons to understand what amounts you need to include for your client.When you release equity with one of our Lifetime Mortgages, you can take a lump sum in one go or as a series of smaller lump sums when it suits you. As a last resort, their home may be repossessed if they don't keep up with payments. Additional evidence may be required.Ī Retirement Interest Only Mortgage is a loan secured against your client's home. The calculator gives an estimate of affordability and is not a guarantee of lending. Applications are subject to our standard lending criteria, status and financial standing. This is subject to the information you provided, plus the results of a credit reference check. Once you've received a figure, you'll need to complete a full Decision in Principle to receive the exact amount your client can borrow. Please make sure you complete the mortgage loan amount, income and monthly payments as accurately as possible. It's been designed for you to work through the questions with your clients, during your client meetings and telephone calls. Our affordability calculator will give you an indication of the amount your client could borrow.
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