When you come to retire, a lifetime mortgage can both offer a financial boost and allow you to live in the house rent-free. You still own the property, and any repayments are made after you have finished using it. Though this means that the house cannot be passed on, for those who wish to maintain their standard of living a retirement mortgage can make that happen.
At Michael Reed Wealth Management , we are committed to fully understanding your personal situation before devising an equity release plan, leaving you to enjoy your retirement.
Before any decisions are made, it is important to consult a reverse mortgage adviser. Though a lifetime mortgage scheme is a beneficial option for older clients, it can also be complicated and come with penalties if not repaid. Defined as a mortgage for retirees, we can help you understand the benefits and costs of a lifetime mortgage, so you can make your decision with confidence. We will find the perfect provider for you, ensuring that your future is in safe hands.
The equity of your home is the value that you have paid into minus any debts, so a lifetime mortgage provides a loan secured against your home which runs for the rest of your life. The payments are flexible, either a lump sum or consistent income, and you are only charged interest on what you withdraw.
Any interest is charged to the outstanding balance of the house, which means that a small amount of borrowed money will increase. Upon selling the house, the loan and any interest is repaid. Though a lifetime mortgage can reduce the value of the estate, it can be beneficial to those wishing to retire comfortably.
To discuss how a lifetime mortgage can benefit you financially, contact Michael Reed Wealth Management today.
