The key features of Lifetime Mortgages
More over-55 homeowners are accessing their property wealth to accomplish their later life ambitions than ever before, with Lifetime Mortgage lending growing by 29% every year since 2014. This growth has been boosted by the innovation of Lifetime Mortgage products, with new features introduced every year to help customer fulfil their wants and needs, tax-free.
5 Lifetime Mortgage features
- No-negative-equity guarantee: This ensures that the loan can never exceed the value of the property.
- Voluntary repayments: Allows consumers to make penalty-free, capital repayments to their loan.
- Drawdown facility: The customer stores some of their released equity in an interest-free reserve, which can be accessed at their convenience.
- Inheritance guarantee: Borrowers can ringfence a portion of their home’s value as a guaranteed inheritance to be passed on to their heirs.
- Portable option: All plans are portable, subject to the lender’s criteria, meaning customers can move home if they wish.
Lifetime Mortgages can be an excellent solution for clearing an existing mortgage, boosting disposable income, or for gifting an early inheritance.
If you have customers who could benefit from regulated access to their property wealth, you could refer them to Responsible Equity Release – with average commission earnings of £1640. They will also handle all the compliance, allowing you to get on with advising on your core subjects.