Lifetime Mortgages

A lifetime mortgage** is a form of equity release scheme* where a loan is secured against your property to provide you with a lump sum or regular income, with no monthly repayments to make.

Interest will be added to your loan and the full amount is paid back when your home is eventually sold following your death (or the death of the last survivor if it is a joint application) or if you move into long-term care or sheltered accommodation.

Advantages of a lifetime mortgage**

  • A lifetime mortgage gives you the choice of a cash lump sum or income with no monthly repayments to meet.
  • You retain full ownership of your home
  • Lifetime mortgages are available to younger people (aged 55+)
  • Vision Financial Planning only recommends plans with a no negative equity guarantee.

Disadvantages of a lifetime mortgage**

  • The amount you leave as an inheritance will be reduced
  • The interest applied can grow quickly. Borrowers need to be aware they will pay interest on the interest that is charged.
  • If you repay the loan early, you may have to pay an early repayment charge
  • You can’t usually raise as much money with a lifetime mortgage as you could with a home reversion plan, especially at younger ages.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

**To understand our fees click here.