Want to move, need to move, family needing deposit monies for purchase? No savings? Unable to get a mortgage?
If the above sounds familiar, there are new styles of Equity Release schemes that will help achieve any of the above.
So being that little bit older now helps!
Recently we have received several enquiries from older clients looking at ways they can purchase a property. Many of these clients are retired or at the point of retiring and wish to purchase a property to suit their lifestyle, which may be a bungalow
or a property nearer to family for example. As
you can appreciate, funding such a purchase for some clients can be a challenge, as conventional mortgages may be difficult to obtain due to age or affordability.
For clients in this bracket, we’ve looked at alternative options and using Equity Release via a Lifetime mortgage has helped them achieve the purchase of a new home.
In simple terms, a Lifetime mortgage is an interest-only loan secured against the property, with the borrower having the option of making interest-only repayments should they wish to or if they choose not to service the interest, allowing it to be added to the loan on a compounding basis.
An income and affordability assessment is not an essential requirement when securing this type of finance as loans are typically determined by the client’s age, health and value of the property in question. The client would have ownership of the property in the same way as they would with a conventional mortgage.
- Clients must be aged 55 or over to take out a Lifetime mortgage
- You must live or plan to live permanently in the property
- Any existing mortgages/secured loans on the property will need to be cleared as part of the process