I want to cover really briefly today some of the most commonly asked questions that clients ask when they’re looking into later life lending, equity release, etc.
Is there a minimum age?
Well, you need to be 55 plus to qualify for the later life lending ones. There are some mortgages called RIOS, retirement interest only mortgages, that may be suitable in some cases for people below that age. But that’s where you’d talk to a qualified advisor and they’ll be able to look at all the options available for you and obviously help you with the best one available for you specifically.
Do I still retain ownership of my home?
That’s a good one. Absolutely. Yes. For some of the older clients, like myself, you may remember many years ago when some used the old equity release mortgages and didn’t actually always retain ownership of the home. Thankfully those have gone. They are no longer available or recommended anymore. So yes, you absolutely will retain ownership of your home. You just have a mortgage in place exactly the same as when you bought your first home, basically.
Do I have to make payments on the equity release or lifetime mortgage?
No, you don’t have to. The interests could roll up to the end point if you want it to, or there are options available to make payments of the interest only, or you can make partial payments. All of these things obviously will be discussed properly with you by your qualified advisor to look at all the options for you and you can consider those as one of the options for yourself.
When has the loan got to be paid back?
Basically, if it’s a joint application, it’s paid back on the second applicant’s either death or move into a care home. If it’s just one person it’s payable on their death or their moving into a care home, whichever is first.
Can I move home if I’ve got a lifetime or equity release mortgage?
Dependent on the products, yes, there are products that are portable and they will normally be subject to that lenders conditions and so on. So obviously check that out with your advisor, because if that is something that you want to consider down the road, then that will be part of the recommendation process and stuff.
Hope this helps and thanks for reading!