Lifetime Remortgage Specialists On Your Doorstep
For many homeowners, setting up a lifetime mortgage, which enables equity to be released from their property, is an ideal way of boosting a retirement pension pot, funding home improvements or paying for a trip of a lifetime, without having to downsize or make monthly payments on a more traditional bank loan, especially with interest rates so low.Here at The Financial Planning Group we have been advising our clients regarding the availability of newer, more flexible, methods of borrowing – by demystifying lifetime mortgages and equity release products – we can offer strategic benefits when considering Inheritance Tax exposure or in helping a family member on to the property ladder.And with an office in the heart of Teddington, we are right on your doorstep whenever you need the right advice.
What is a lifetime mortgage?
We all want to enjoy a new lease of life in retirement, but having enough money to pay for bigger plans on top of the everyday essentials can be tough. If you’re looking for a way to fund your retirement dreams without having to move, you could consider releasing equity from your home.
A lifetime mortgage is a loan secured against your home, it’s a type of equity release. The loan, plus interest, doesn’t have to be paid until the last borrower dies, or moves out of the home into longterm care. There’s no need to make monthly payments and you won’t have to move. A lifetime mortgage comes with a “no negative equity guarantee”, which means you or your estate will never owe more than the property is sold for (subject to the product’s terms and conditions).
- You can’t lose your home
- Negative Equity guarantee – you will never owe more than the value of the property
- You can move home – your lifetime mortgage can move house with you
- You can pay interest so the debt does not increase
- Inheritance protection – you can protect a percentage of your property to leave to you beneficiaries
- Repayable on death or admission to long term care
The interest rate you take out will be fixed for the lifetime of the loan, and this can’t be changed. Taking out a lifetime mortgage is a big decision, so to ensure you understand all the features and benefits, you won’t be able to buy a lifetime mortgage without financial advice.
There has been a lot of negative publicity about Equity Release as, in many cases, higher than acceptable interest rates and restrictions were included in constrictive contracts, and there are many horror stories where, rather than allowing home owners to enjoy their later life using a windfall from their own homes, they face mountainous redemption costs and a reality where leaving inheritance to their own family has been removed.
About The Financial Planning Group
Chartered Financial Planning In Teddington
We help individuals and families to place their financial affairs in context with future goals and aspirations. We will change the fundamental relationship people have with their money to give them confidence and clarity in their futures.
Why do people take a lifetime mortgage?
- To make home improvements: a new kitchen or conservatory
- Repay an interest-only mortgage or other debts
- Help a loved one onto the property ladder
- To pay for a family holiday
- To enjoy a more financially comfortable retirement
There are many reasons why you may consider releasing equity from your home with a lifetime mortgage, but they are not suitable for everyone and it is essential you consult with an impartial Chartered Financial Planner to ensure compatibility and work though all financial considerations.
Here at The Financial Planning Group, we are able to sit down with each client on an individual basis and agree on a strategy that is right for their exact circumstances.
We help individuals, families and businesses to place their financial affairs in context with their future goals and aspirations. We provide a simple, structured, disciplined and reviewable planning service. We will change the fundamental relationship people have with their money to give them confidence and clarity in their own future.
One of our biggest advantages is that we are qualified to give you advice. This is really important – many call centres and high street bank employees work on a non-advisory basis. This means they can give you as much information as you want about the products but cannot give you any advice about how this would relate to your particular situation.
Over 25 Years In Teddington
We are an independent financial advice business established in Teddington, South West London in 1993. We provide financial planning solutions to individuals, families, companies, trustees, accountants and solicitors. We are fee based and unbiased, working with our clients to realise their financial goals.
Call us on 0800 731 7614
The long-term trend of rising property prices, low interest rates and economic uncertainty means that for many over-55s, their home now represents their most significant financial asset. This has seen the popularity of regulated equity-release plans soar, with specialist mortgages – known as lifetime mortgages – quickly becoming the UK’s most popular way to unlock equity.
Historically, equity release has had a bad reputation for leaving homeowners and their heirs with big debts when the family home is finally sold. But the industry is now regulated by the Financial Conduct Authority (FCA), resulting in important consumer protections.
Dwindling pensions make unlocking cash from property an increasingly popular option, but for those who have the equity, is it better to sell up and downsize, or should retirees opt for to equity release plans?