Interest Only Lifetime Mortgages London, Middlesex, UK Surrounding Areas
Interest only Lifetime Mortgages are Equity Release Schemes which give property holders the right to have cash from their home. Also, they are not required to repay the capital sum until death or they move into care– henceforth the term Lifetime
Meanwhile, candidates can pay interest every month to keep the debt from increasing. Their property is never under any threat as if they stop making payments, the interest can then be simply added to the sum borrowed.
The money you can have is dependent on age (of the youngest homeowner) AND property valuation, NOT on the income, affordability and credit rating.
By making monthly reimbursements of interest, repayments are both reasonable and avoid debt from increasing.
It is up to you when you want to stop making repayments. You may choose to not to pay if there is any change in your circumstances. In such a case, the interest will be simply added to the debt. Your right to remain in your home is ensured.
Being equity release schemes, aside from being managed by the FCA, you will get additional safeguards awarded by any Equity Release Council provider.
The loan and
best interest rates are fixed for life to give you long-term stability.
Aside from any sum requested in the beginning, a few plans give an extra “facility.” Should you require more cash, you can ask, as and when required.
As in Retirement interest only mortgages nationwide, under this scheme too, there is no limitation on age at entry or when reimbursed.
The scheme is only accessible after age 55 and this is the age of the youngest candidate in the case of joint homeowners.
These plans are calculated on age and property estimation, not salary. This means that for more youthful candidates who are still working, the amount accessible may not be very much.
Because of the fixed interest rates for life – Interest rates can be higher than under a Retirement Mortgage however gives lifetime certainty to the planning.
Early Repayment Charges on early voluntary repayments might be higher than under Retirement Mortgages.
Because of the additional protections and lifetime nature, you can only have them from a specialist equity release adviser.
Equity Release will decrease the value of your property and can influence your eligibility for means-tested benefits.
Being approved to give mortgage guidance just as equity release, you will be happy to know that we are specialists in both.
Interest only Lifetime Mortgage UK Nationwide
Equity release is one of the common ways to raise funds in the later life for the UK homeowners. There are many types of equity release plans available in the market today. However, most of them are categorised under two major plans: lifetime mortgage and home reversion plan. At Equity Release 4 You, we provide you with a range of equity release products to meet varying customer needs.
What is an Interest only Lifetime Mortgage UK Nationwide London?
An interest only lifetime mortgage is a type of lifetime mortgage equity release where you can withdraw a lump sum of cash against the value of your property and you are required to pay only the interest every month, contrary to standard lifetime mortgage where the mortgage amount and accrued interest are paid at the end of the term. This has become an increasingly popular equity release option as the size of your loan never goes up. As long as you keep up with monthly interest payments, you will never owe more than the loan amount. This prevents the accumulating of interest associated with the lifetime mortgage.
How Does Interest only Lifetime Mortgage Nationwide Works?
The equity release interest only mortgages work on the same sets of rules as the regular lifetime mortgage. That means you need to be at least 55 years old, a UK resident and own a home worth at least £75,000. The interest only lifetime mortgage provider will allow you to release a lump sum of money against the value of your property. This is a tax-free sum, so you can spend the way you wish.
Unlike other equity release schemes, lifetime mortgage interest only will require you to make monthly interest repayments. The loan amount is usually paid back when your home is sold after you die or move into permanent care. Since you paying interest every month, the mortgage amount itself will never rise.
How Much Can I Borrow with Interest only Lifetime Mortgage?
The amount you can withdraw is dependent on your age, health condition and your property value. With that being said, we may allow you to borrow a maximum LTV ratio of 40 to 50%. The older you are, the higher LTV you can expect. For borrowers with health conditions, the LTV ratio may go up a little as they are thought to have a shorter life expectancy.
However, we advise you to use our interest only lifetime mortgage equity release calculator that will give you an estimation about how much equity you can release. In special circumstances, we may also allow you to release up to 55 or 60% of the value of your residence. For a more accurate figure, please talk to one of our equity experts.
How Much Interest Do I Need to Repay Every Month?
Earlier, paying interest only lifetime mortgage needed an affordability check before the mortgage was sanctioned. However, FCA amended this rule and discarded income or affordability check criteria for this type of mortgage. Our nationwide interest only lifetime mortgage best rates are fixed, but the amount of interest you need to pay every month depends on the loan you withdraw. Hence, your monthly repayments depend directly on the loan amount. The higher the loan value, the higher the interest will be.
What are the Advantages of Lifetime Interest only Mortgages?
Fixed interest rates
Unlike the traditional mortgage, the interest rate for lifetime mortgage interest only is fixed. This helps you in planning your finance before and after retirement.
Repay only the interest
You are required to pay only the monthly interest during the mortgage term. The loan amount is repaid when you pass away or shift to a long-term care.
Get a tax-free sum of money
The money you release is tax-free, which means you are free to spend wherever you like. Whether you want to go on a vacation or secure a better quality of life after retirement, there is no restriction no how you can spend this money.
There is no upper age limit
If you are aged 55 or above, you are eligible to take out interest only lifetime mortgage. There is no upper age limit that stops you from releasing equity from your home.
Switch to lifetime mortgage
Due to any circumstances if you are not able to pay the monthly interest, we also allow you to switch to the standard lifetime mortgage, where the interest is rolled up and paid along with the loan amount after the term ends.
You hold the home ownership rights
You retain the full ownership of the home and have the right to stay in your home until you pass away. Your family will benefit from any increase in the value of your property when it is sold.
Moving to a new home is possible
The interest only lifetime mortgage is transferable. That means you can move to a new home provided that your new property meets the lending criteria.
Is Interest only Lifetime Mortgage Right for Me?
Equity release interest only lifetime mortgage has been preferred by many people since there is no age barrier for the lender to withdraw equity. Whether you are 55 or 90, interest only mortgage has become a feasible financial option to release tax-free cash from your residence in later life. The lifetime mortgage interest only is right for you, if:
- You want to help your family financially, without risking the future inheritance.
- You want to help your children pay a deposit for the new home.
- You wish to secure your retirement and live a better life later.
Get an Expert Advice from Equity Release 4 You
At Equity Release 4 You, we have been offering a wide range of equity release plans for many years now. If you are looking for the most suitable and the easiest way to release a large sum of cash, be it to live your dreams, pay off debts, protect retirement or leave an inheritance, equity release is perhaps the right option for you. However, you should seek advice of equity specialists who can help you choose the right equity release plan. When you opt to release equity with Equity Release 4 You providers our experts will make you understand about how much money you can release with interest only lifetime mortgage, what are the interest rates and what risks are associated with releasing equity.
Please contact us today to find out more.