Usually a lifetime mortgage has a fixed interest rate. If you take the money in one lump sum, interest accrues on the full amount from the day you borrow it – regardless of when you use the money. If you don’t need all the money straight away you could consider a drawdown plan
, which could save you thousands in interest.
The different types of lifetime mortgages
Drawdown lifetime mortgages work in the same way as lifetime mortgages but you can then choose to ‘drawdown’ the cash in stages as and when you want to.
If you or your partner have any qualifying health conditions or make certain lifestyle choices you may be able to release more money from your home.
If you want to guarantee an inheritance for your family this is possible with some lifetime mortgages.
Flexibility within lifetime mortgages means that Key, as impartial advisers are best able to assess how you could benefit from a combination of these options to not only save your estate money but also tailor your plan to your current and future needs.
Interest payment plans
Interest-payment lifetime mortgages work in the same way as a lifetime mortgage, however you are able to make regular payments on the interest that accrues over the lifetime of the loan.
If you are considering equity release we recommend that you read is it right for you? carefully.