Call us on 0800 464 3677

Mortgage Advice Bureau Later Life lifetime mortgages

There are many different equity release plans that could help you tap into your property wealth without having to move. But which one is right for you?

Lifetime mortgages are a type of equity release that have a range of different features to meet different needs and priorities.

Lifetime mortgage facts:

Available to homeowners aged 55 and over with a property worth at least £70,000.

Typically there are no monthly repayments to make as the loan plus compound interest is repaid when the plan comes to an end. 

All of the plans we recommend meet the Equity Release Council standards meaning you get the no negative equity guarantee and will never owe more than your home is worth.

Lifetime mortgage plans and features:

Lump sum and drawdown plans

If you’re looking for a one-off amount of money, a lump sum lifetime mortgage could be the right option. The interest rates on these mortgages are fixed for life. As compound interest will be rolled up on the money you’ve released, you will owe more if you take all your available cash in one go. 

If you wish to have some money now and access more at a later date, a drawdown plan may be more suitable for you. With this sort of plan, you can take out an initial lump sum and then have access to further funds in the future should you need it. 

With a drawdown plan, interest gets charged on the amount of money withdrawn and therefore can be more cost effective for you over the long term. Interest rates on any future cash withdrawals are set at the prevailing rate at the time the drawdown is taken.Your lender may have the option to withdraw your additional borrowing facility.

Inheritance protection

If leaving an inheritance to your loved ones is something you’d like to do, some plans will allow you to ring-fence a percentage of the future value of your home for your beneficiaries (subject to criteria). No matter what happens to house values, your beneficiaries will receive that percentage in the future, subject to further funds not being withdrawn.

Downsizing protection

Although you can move your equity release plan to another property, it must fit the lender’s criteria. The benefit of having downsizing protection means that after a qualifying period, if you want to move to a home that isn’t suitable to the lender, you can repay the amount you owe in full without paying an early repayment charge, our expert adviser will explain this feature in more depth to you.

Partial capital repayments

If you can and wish to make repayments to reduce the overall cost of your lifetime mortgage, you have this option with some plans.
With this feature, you can make voluntary ad hoc repayments up to 10% - 12% of the amount you initially borrowed to reduce the size of your loan from which the interest is calculated, without incurring early repayment charges. Should you repay more than the 10 - 12%, early repayment charges may apply.

Fixed early repayment charges

A lifetime mortgage is a long-term financial product and is not designed to be repaid early, otherwise early repayment charges may apply. However, you can choose a plan with fixed early repayment charges, if your long term plans do suddenly change you’ll always know how much you’ll be charged should you choose to pay off the loan early.

Getting advice

At Mortgage Advice Bureau Later Life, we’re committed to finding a solution that meets your needs and works for you.

We’ve carefully selected a group of leading providers to offer a range of products to meet your needs. All the plans we recommend meet the Equity Release Council's standards.

Remember, it is a regulatory requirement that you receive advice before you take out any equity release product. Your adviser will work with you to understand what’s most important to you and make a recommendation on that basis. Your adviser will also tell you if equity release isn't the correct option for you.
And once you decide to proceed with the plan recommended to you, we’ll support you the rest of the way.

Ready to find a plan?

Our specialist equity release advisers are here to help you decide if equity release could help improve your retirement finances.

Are you eligible?

Use our free equity release calculator to find out if you’re eligible and see how much you could release.

Things to consider

Because we play by the book we want to tell you

  • Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefully selected panel of providers.
  • Mortgage Advice Bureau Later Life offer lifetime mortgages only, which is a loan secured against your home.
  • As part of our advice process, we'll consider whether retirement interest-only (RIOs) and other mortgages may be suitable and can arrange advice on these if appropriate. Advice fee will vary.
  • Unless you decide to go ahead, our service is completely free of charge, as our fixed advice fee of £1,295 would only be payable on completion of a plan.
  • With a lifetime mortgage there are typically no monthly repayments to make, as the loan plus compound interest is repaid when the plan comes to an end. This is usually when you or the last surviving applicant dies or moves into long term residential care.
  • Equity release will reduce your estate's value and may affect your entitlement to means tested benefits.
  • A lifetime mortgage may result in limited or no property equity remaining and will reduce your finanical options in the future.