Lifetime Mortgage London: Expert Advice

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Author Paul Murphy -Later Life Finance Ltd

How Do I Arrange a Lifetime Mortgage in London?

Whether you are considering a lifetime mortgage in London for inheritance tax planning purposes, to boost your retirement finances, a dream holiday, car or for home improvements, seeking expert advice on the growing range of options available is crucial to secure the best possible outcome.

Later Life Finance are a specialist lifetime mortgage broker providing London homeowners with expert advice on unlocking the wealth from your home.

We help London homeowners explore the benefits of raising tax free equity with lifetime mortgages in London, and consider how equity release can reduce inheritance tax to home improvements and dream holidays

Later Life Finance are members of the following London bodies

Cash Lump Sum

Lump sum for home improvements, a new vehicle or to boost finances

Pay Off your Mortgage

Repaying your mortgage to enjoy the retirement you've worked for

Compare Lifetime Mortgages In London

Book a free call back and compare all your options with an expert
Get calculations, projections and illustrations, stress free.

Calculate My Equity

Help family with a gift

Gifting an inheritance and IH tax planning

Dream Holiday

Equity release can help you fulfil a dream holiday destination

Types of Lifetime Mortgages available in London

Lifetime mortgages in London offer a multitude of benefits for the over 60s and 70s, with a wide range of interest rate and repayment options when considering remortgaging to release equity from your home.

For example, lump sum, drawdown, and interest-only lifetime mortgages are all variations of these flexible plans now available.

Lump Sum Lifetime Mortgages in London

Lump sum lifetime mortgages in London provide a single payment, with interest accruing over time if you do not make any voluntary repayments to the plan.

This type of mortgage allows you to access either a small or large sum of money at once, based on your age and the property value.

Our expert advisers will also consider whether a drawdown lifetime mortgage may be more suitable.

Drawdown Lifetime Mortgages in London

Drawdown lifetime mortgages in London offer more flexibility, allowing borrowers to access funds as needed, with interest only charged on withdrawn amounts. This type of mortgage can be an attractive option for those who want to access funds gradually while minimising interest charges.

The funds in the drawdown (or reserve facility) are charged at the prevailing interest rate at the time of borrowing, which makes this option an efficient route compared with taking the funds in one lump sum.

Interest only lifetime mortgage in London

The increasing range of Interest-only lifetime mortgages in London require monthly interest payments, keeping the loan balance constant.

This type of mortgage can help homeowners protect a larger portion of their property for inheritance or maintain a steady loan balance.

The advantage of an interest only lifetime mortgage is the payments are voluntary and can be rolled up, which protects homeowners from defaulting on the mortgage in the event payments were stopped for any reason. This can be beneficial in the event of either spouse passing away or going into long term care, and protects the surviving homeowner.

Consider whether making monthly interest payments aligns with your financial goals and capabilities.

How To Remortgage to Release Equity in London

Remortgaging to release equity is becoming popular with London homeowners to unlock tax-free wealth to boost finances in retirement.

If you are considering a remortgage to release equity, our expert advisers can help you explore the market and source the best remortgage deals from all lenders available in London.

Book a free online appointment and discover all your options with our qualified experts.

What is the lifetime mortgage application process in London?

If you are ready to explore your lifetime mortgage options further, here are the next steps:

Book a FREE adviser review to discuss your options with our qualified experts
We compare the whole market and arrange your illustrations, projections and we will answer all your questions
If you are eligible and decide to proceed, we will submit your application
Around 8 weeks later receive your tax free funds

A lifetime mortgage is a loan secured against your property, with the amount borrowed and interest repaid when you die or move into long-term care. This type of equity release product allows you to:

Access the value in your home without having to sell it
Provide you with additional funds to meet your financial needs
Retain ownership of your property

Access broker exclusive deals, cash backs and expertise to save you time and stress when exploring and arranging lifetime mortgages and equity release in London.

Get in touch with our experts on 0800 2465228 for advice on all your lifetime mortgage options

Later Life Finance are members of the following London bodies

Get your free equity calculation & Inheritance Tax...

Royal London Equity Release

Royal London equity release say “We’re the UK’s largest mutual life, pensions and investment company”

Applications can only be made through independent financial advisers, ensuring that borrowers receive professional advice.

Royal London equity release are a member of the Equity Release Council. To explore your options further, consider using our free Royal London equity release calculator.

Lifetime mortgage providers in London

Lifetime mortgage providers in London offer a wide range of options available, from downsizing protection to flexible drawdown plans.

The best lifetime mortgage providers offer plans with competitive rates, flexible terms, and exceptional customer service. The range of enhanced lifetime mortgages provide higher percentages of lending for medically enhanced terms.

The interest only lifetime mortgage rates available allow you to benefit from more flexible terms such as discounted interest rates for making regular monthly interest payments.

Let’s take a closer look at some of the best providers in the market.

Legal & General

Legal & General are known for their exceptional customer service and as they fund their own mortgages, they make fast decisions and are flexible. Applications can only be made through independent financial advisers, ensuring that borrowers receive personalised guidance from qualified professionals.

This ensures that customers receive the best advice and guidance when making decisions about their retirement plans. Legal & General also offer a wide range of later life mortgages making it an attractive option for finding the best solution for your needs.

Legal & General are a member of the Equity Release Council. To explore your options further, consider using a free equity release calculator.

Aviva

Legal & General are known for their exceptional customer service and as they funds their own mortgages, they make fast decisions and are flexible. Applications can only be made through independent financial advisers, ensuring that borrowers receive personalised guidance from qualified professionals.

Legal & General are a member of the Equity Release Council. To explore your options further, consider using a free equity release calculator.

More to Life

More 2 Life offers flexible lifetime mortgage plans from several funders providing borrowers with access to a wide range of solutions available through your equity release adviser.

it’s worth noting that More 2 Life is a member of the Equity Release Council. To explore your options further, consider using our free equity release calculator.

Canada Life

Canada Life offers flexible lifetime mortgage plans and also provide downsizing protection, allowing borrowers to switch to a smaller property and pay off their lifetime mortgage without extra fees.

This means that borrowers can move to a smaller property without having to pay additional fees or charges. This is a great benefit for those who may need to downsize in the future, and

Standard Life

Standard Life offer some of the most competitive lifetime mortgages in the market. With tapered early repayment charges their plans offer a good level of flexibility for homeowners.

Who are Later Life Finance?

Later Life Finance are a specialist lifetime mortgage broker providing London homeowners with expert advice on unlocking the wealth from your home.

To fully understand the features available, it’s crucial to obtain independent lifetime mortgage advice to understand all your your options to make voluntary repayments, and compare the entire market to ensure a lifetime mortgage is the most suitable solution for your requirements.

We help homeowners explore the benefits of raising tax free equity with lifetime mortgages in London, and consider how equity release can reduce inheritance tax to home improvements and dream holidays

Access broker exclusive deals, cash backs and expertise to save you time and stress when exploring and arranging lifetime mortgages and equity release in London.

Get in touch with our experts on 0800 2465228 for advice on all your lifetime mortgage options

Lifetime mortgage FAQs

What percentage can I borrow on a lifetime mortgage?

The amount you can release on a lifetime mortgage is usually between 20% and 50% of the home's valuation. This is based on the age of the youngest homeowner and the property type.

Can you borrow more on a lifetime mortgage?

If you need to raise more money and have no remaining Drawdown (reserve) Facility, you may be able to take a Further Advance from your lifetime mortgage. This is additional borrowing on top of your existing lifetime mortgage and is subject to the valuation of your home and the balance on your lifetime mortgage.

Can I move home with a lifetime mortgage?

Equity release companies who adhere to the Equity Release Council codes of conduct offer the option to transfer your lifetime mortgage to a new property if you decide to move. However, certain conditions must be met for the new property to be considered "suitable." A suitable property refers to one that is deemed marketable by the equity release company in the future. For instance, if the new property is located in a flood-prone area, the transfer of the lifetime mortgage may not be permitted. In the case of downsizing to a property of lesser value, you might be required to repay a portion of your lifetime mortgage to facilitate the transfer.

How much do you pay back on a lifetime mortgage?

In the case of a lifetime mortgage, you generally do not need to make monthly repayments since the loan, along with the accumulated interest, is settled when your home is eventually sold. Your lifetime mortgage adviser will provide detailed projections of how much you will pay back based on whether you opt to make payments or not.

What happens when you die shortly after taking out a lifetime mortgage?

In the event of you passing away shortly after obtaining a lifetime mortgage, the interest accrued would not have significantly accumulated, resulting in a smaller growth of the debt. If no other homeowner is listed on the lifetime mortgage, the lender requires the mortgage to be settled within 12 months of you passing away. The executors of your will sell the property and utilise the proceeds to settle the debt. The beneficiaries of your estate may opt pay off the debt using cash or a new mortgage and retain ownership of the property. This will depend on factors including your wishes set out in your will, and on whether the property is to be retained or sold, with any remaining equity divided by your beneficiaries.

Can you end up owing more than your home is worth with a lifetime mortgage?

Equity release lenders who are a member of the Equity Release Council provide a no-negative equity guarantee. This ensures you will never be required to repay more than the proceeds from the sale of your home to settle the debt. In other words, the lender cannot pursue you for any shortfall between the debt amount and the sale proceeds. This protection is made possible by the no negative equity guarantee, which is upheld by all members of the Equity Release Council. According to this guarantee, the lender is strictly limited to requesting only 100% of the sale proceeds as repayment. They are not permitted to seek additional payment from you, your estate, or your estate beneficiaries.

What is a typical rate for a lifetime mortgage?

A typical rate for a lifetime mortgage typically falls between 5.9% and 7%. That said, your rate may be different depending on factors like your loan-to-value ratio and the features included in your plan. It’s important to compare the features of different plans to find the one that best fits your needs.

What are the disadvantages of a lifetime mortgage?

Lifetime mortgages come with a few risks, such as the possibility of owing more than the value of your home due to accumulated interest. They also require monthly fees and can significantly reduce the amount of inheritance you can pass on to family members. Ultimately, it’s important to consider all of these factors when deciding if a lifetime mortgage is the right choice for you.

How do lifetime mortgage interest rates work?

Lifetime mortgage interest rates are typically based on your age, the amount of money you need to borrow, and the value of your property. Generally speaking, the older you are and the less you borrow, the lower the rate you can expect. Drawdown lifetime mortgages have interest rates set at the time of further borrowing, whereas the initial lump sum is determined at the time of arranging the plan. So be sure to research what’s out there before making a decision.

Can I pay off a lifetime mortgage early?

Yes, you can pay off a lifetime mortgage early, but there may be fees associated with doing so. Providers have varying levels of early repayment charges which your equity release adviser will discuss with you to ensure you have access to all your options and understand the features and charges. It is best to check with your provider before you decide on the repayment plan.

What are the different types of lifetime mortgage?

Lifetime mortgages come in several forms, including lump sum, drawdown and interest-only plans. Each offers different rates and repayment arrangements, so your adviser can tailor the mortgage to meet your needs. Later Life Finance provides access to the whole lifetime mortgage market. We will explain the features, costs and points to consider of each option. This will help you make a balanced decision on the right solution for you.

Can equity release be used to pay off an interest-only mortgage?

You can repay an interest-only mortgage with an equity release plan. Lifetime mortgages are the most popular form of equity release and allow optional repayments of interest charges, if you wish. Since monthly repayments are voluntary with a lifetime mortgage, your home is not at risk of repossession if you do not maintain monthly payments.Therefore these plans can be more suitable into retirement years.

what is an interest only lifetime mortgage?

An interest-only lifetime mortgage is a type of equity release plan where you can pay the interest off on a monthly basis. This avoids compound interest being added which stops the loan from increasing. This type of mortgage is popular for homeowners who want to maintain equity in the home for inheritance or downsizing purposes.

Lifetime Mortgage London: Expert Advice