Lifetime Mortgage

A ‘lifetime mortgage’ is by far the most popular product in the equity release market as it enables you to continue to own 100% of your home whilst also releasing a lump sum of tax-free cash from the value of your property. There is no requirement to make regular monthly repayments as the equity that you release, plus any fixed interest accrued, is repaid when your property is sold. This happens when either you or your partner die, move into long-term care or permanently leave the property without purchasing another home.

Clear Planning works with the leading lenders across the whole of the equity release market which enables us to find the most suitable lifetime mortgage plans for each and every one of our customers whilst meeting their individual lending requirements.


Drawdown Lifetime Mortgage

This is similar to the standard lifetime mortgage, however, with the drawdown lifetime mortgage, you can access your money in stages as opposed to receiving a one-off lump sum. This allows you to access the money as and when it suits you (subject to minimum amounts). Furthermore, you only pay interest on the cash that you have taken which can make these plans more cost-effective.


Home Reversion Plan

A home reversion plan is a type of equity release that is entirely different and less popular than the alternative (a lifetime mortgage). A home reversion plan allows you to sell all or part/exchange the ownership of your property for a lump sum of cash; in addition to giving you the right to stay in your property, ‘rent-free’, for as long as you live (subject to the lenders Terms & Conditions). This can also be known as a ’lifetime lease’ and is only available to those who are aged 65 or over.


Interest Only Lifetime Mortgage

This is like a standard lifetime mortgage. However, you can choose to make repayments in full or on a regular basis to reduce the effect on the value of your estate. Some plans allow you to make repayments that are equal to or less than the amount of interest that is charged. The balance and the interest accrued is paid off from the value of your estate; either when you or your partner die, move into long-term care or permanently leave the property.


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