The loan is secured against the property to provide a tax-free cash lump sum, with typically no monthly repayments to make.
Compound interest is added to the loan until the plan comes to an end, when you die or move into long-term care. The loan plus interest is paid back when the home is sold.
You can typically release up to 55.5% of the value of your property with a lifetime mortgage, depending on your age, health and lifestyle.
Similar to lump sum lifetime mortgages but with added flexibility. After an initial release, you can choose to ‘drawdown’ the cash in stages. The interest is only added on the amount released so it adds up more slowly.
Within these two types of lifetime mortgage there are specific plan features which give you the flexibility to create a plan that works for you:
If acceptable, the loan can be ported to the new property.