Unsually
interest is added to the lifetime mortgage loan throughout your lifetime, accruing
at a fixed or variable rate. The loan plus interest is eventually paid back when
the home is sold, usually when you move into long term care, or when you and your
partner die. You can typically release between 18-50% of the value of your home
with a Lifetime Mortgage, depending on your age. Advantages of a Lifetime
MortgageA Lifetime Mortgage gives you the choice of a cash lump sum or
income, typically with no monthly repayments to meet. You retain full ownership
of your home Lifetime mortgages are available to younger people (aged 55+) No
negative equity guarantee Some Lifetime Mortgage plans let you guarantee
an inheritance for your family
All equity release plans are regulated by the
Financial Services Authority Disadvantages of a Lifetime MortgageThe
amount you leave as an inheritance will be reduced. The interest applied
can grow quickly as it is compounded. You can't usually raise as much money
with a Lifetime Mortgage as you could with a reversion plan, especially at younger
ages. If you repay the lifetime mortgage early, you may have to pay an early
repayment charge. Lifetime mortgages have become a highly popular form of
equity release scheme over the past few years, prompting many providers to offer
a variation of a lifetime mortgage called a drawdown plan which allows you to
release equity as and when you need it, rather than taking a lump sum or regular
income. You can get an idea of how
much equity you could release with a lifetime mortgage by using our Equity
Release Calculator. | 
