If you are over 55 and needing to release finance from your property, later life lending (also known as a lifetime mortgage) is an affordable and flexible option. With rates being the lowest they have been for a number of years, it’s no surprise later life lending is a popular option.

When it comes to drawing down your funds, there are a couple of options available, and an advisor will be able to recommend which would be the most suitable for your circumstances.

There are four main options, and these include:

Lump Sum

This option enables you to release a lump sum from your property with no payments needing to be made until the loan is repaid in full.

Interest is added to this loan and the total along with the original debt is payable when the property is sold later down the line.

Drawdown

This is a particularly flexible option that enables you to borrow a lump sum and then agree an amount that you can borrow in the future as is needed.

Rather than an interest rate set at the beginning of the loan, the rate is set at the point of each drawdown and only charged on the amount taken. This means that your overall interest may be lower.

Interest Serviced

This option enables you to make monthly payments of all or a portion of the interest throughout the duration of the loan in order to reduce the effect of the accrued interest at the end of the loan.

Monthly Income

This option is pretty much as it says on the tin. It gives you a set amount that is paid each month and can be used to top up your income. You only pay interest on the amount borrowed and you are sometimes required to take a small initial lump sum.

Equity release refers to home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.

You can either call us on 01322 553282 or contact us online.