Lifetime Mortgage Plans and Their Scope

A lifetime mortgage, also known as equity release, is a coveted form of capital, aimed at homeowners above the age of 55. It ultimately allows homeowners the opportunity to release cash, defined as equity, which reflects the value of their home, providing an alternative to selling up or down-sizing.

Through either necessity or desire, releasing equity from a home is motivated by greater financial stability, investment opportunities and respite from everyday costs. It is in fact highly associated with changes to lifestyle, such as retirement, worldwide travel, and the desire to improve the quality of life.

While a lifetime mortgage or home reversion plan can offer many benefits, it is important that the right type of plan is secured for your needs, making sure that initial payments, repayments, and interest rates work. In fact, securing the suitability of equity release will be the first step of the process, ruling out any alternative forms of capital or financial aid.

From roll-up lump-sum plans and roll-up drawdown plans, to interest-only lifetime mortgages, equity can be released in many different ways. Through our FCA regulated services, safeguarding a lifetime mortgage plan against your needs is possible.

Lifetime mortgage plans

There are a number of lifetime mortgage plans to think about if you’re looking to release equity from your domestic property. Before committing, it is important that you benchmark all plans against your needs, safeguarding the suitability of a lifetime mortgage, rather than sourcing funds from elsewhere.

– Roll-up lump-sum

A roll-up lump-sum lifetime mortgage is backed by the FCA, offering clients a lump-sum form of capital. The mortgage and interest repayments are made at the end of the term, usually defined as when you sell up, pass away or reside from a residential care home. You still own your property and can still move to another property.

– Roll-up drawdown

Similar to the lump-sum plan, especially when comparing positive and negative assets, a drawdown plan will allow you to have full ownership of your property, with all repayments set for the end of your term. Yet, the key difference is that you can take a proportion of equity through a flexible approach, as and when necessary. Attractive to many, interest is only added to your sum once you’ve released each proportion.

– Interest-only

The interest-only lifetime mortgage plan provides reliable access to capital, is regulated by the FCA and can provide you with both a lump-sum and ongoing access. Your interest will be paid monthly at a fixed rate, based on the amount of equity you release.

– Home reversion plan

If owning your property is no longer a priority but you would like to stay put and release equity, this is possible through a home reversion plan. Your chosen lender will provide a lump-sum in return, along with rent-free conditions, all guided by individual terms. Cash released is tax-free and can be spent how you wish.

Securing the right lifetime mortgage

We can offer up to date guidance through our equity release advisors to provide reassurance when considering equity release.

If suitable, we can help you find the right plan by providing whole of the market advice, which means we are not restricted to any one lender and can offer competitive rates. Personalised to meet your needs, we can provide advice on a holistic basis, offering a wealth of guidance around areas such as pensions and investments, to wills and lasting power of attorney, alongside lifetime mortgage forecasts.

If you’re still uncertain whether a lifetime mortgage plan is for you, or feel unsure which will offer the greatest benefits, download our equity release brochure for more information. Alternatively, you can contact our team today through our contact form or on 01633 246246 for assistance with your lifetime mortgage plans. Face to face and virtual meetings can also be arranged for your convenience.

You can also download an information document – A guide to equity release

Sweetland Associates Ltd
Personal & Corporate Independent Financial Advisers
107 Stow Hill
NP20 4ED
01633 246246 / 07711 036958

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