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What is a Lifetime mortgage?

In its very simple form, a Lifetime mortgage allows you to release some of the equity in your property, without the need to move. They work slightly differently to traditional mortgages; how much you can borrow depends on how old you are and the value of your property, rather than the amount you can afford to pay each month.

OneFamily Lifetime mortgages

Available to homeowners aged 55 or over, our Lifetime mortgages enable you to borrow a one-off lump sum, and then choose whether you want to make monthly interest payments, a more flexible arrangement of one-off voluntary payments, or no payments. You can even choose for your family to make the monthly interest payments.

Either way, the mortgage and any accumulated interest along with any charges, will be repaid when you die, or move into long-term care - using the cash generated from the sale of your home.

Finally, with a Lifetime mortgage you will always retain ownership of your home, and your home will never be repossessed (as long as you abide by the terms and conditions of the loan).

KEY BENEFITS:

  • Allows you to release a one-off cash lump sum
  • You will always retain ownership of your home
  • You will never owe more than the value of your property
  • Your home will never be repossessed


Why would I need a Lifetime Mortgage?

People take out a Lifetime Mortgage for a wide range of reasons.

Achieving financial security

An increasing amount of people are using a lifetime mortgage to clear their existing Interest-only mortgage which has come to the end of the term. Others are using the money to top up their pension and secure a better quality of living.

Home improvements

For some people, it allows them to upgrade their existing home or to undertake essential repairs. For others, it may allow them to raise money to purchase a more expensive property. This may sound unusual as there’s a perception that you should down-size when you retire, but for some this isn’t possible and often, moving closer to your family means that you may have to pay more for your new home.

Helping out loved ones

Finally, we recognise that many people use a lifetime mortgage to help their family. Perhaps it will help children to move home, buy their first property, pay school fees or just help them through an expensive time of their life.

Before progressing...

Whilst there are many more reasons why people use a lifetime mortgage, it is important to state that there are some risks that you may face. For example, a lifetime mortgage may affect your right to state benefits and other benefits and concessions. Also, your estate will be reduced due to the lifetime mortgage, plus there could be risks associated with an increase in interest rates. Your financial adviser will be able to explain more.

Interest Roll-up

Our Lump Sum Interest Roll-up product allows you to release money without having to worry about having to repay anything during your lifetime.



Voluntary Payment

Our Lump Sum Voluntary Payment product allows you to repay 10% of the initial loan amount each year, without incurring an early repayment charge.



Interest Payment

Our Lump Sum Interest Payment product is specifically designed to allow you to repay some or all of the interest each month, for a period of your choice.



What to consider


More and more people are now considering a lifetime mortgage as part of their financial planning for retirement. However, you must ensure that you are happy with how the lifetime mortgage works and the terms and conditions associated with it. You need to understand it will impact any inheritance that you leave to your beneficiaries and may impact your rights to state benefits. Please read our Guide to Lifetime Mortgages for more information or speak to your financial adviser.

How to qualify

To qualify for these loans you must be a homeowner aged 55 or over with a property worth at least £70,000.

You will retain ownership of your home and you will be protected by our no negative equity guarantee which ensures that you or your estate will never have to pay back more than the amount that is received from the eventual sale of your home.

To ensure that you make the right decision and choose a product best suited to your needs, we insist that you obtain advice from qualified independent financial advisers.

Get advice

Because we do not provide advice on lifetime mortgages, you will need to discuss your situation with a suitably qualified financial adviser. They will be able to listen to your needs and research your options amongst a wide range of mortgage providers. It may be that OneFamily lifetime mortgages isn’t right for you. Only your financial adviser will be able to tell you this.

If you do not have a financial adviser, then the following links will provide some options:

unbiased.co.uk thepfs.org




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Member of the Equity Release Council

OneFamily is a member of the Equity Release Council, which means that we adhere to a strict code of conduct.

To find out more, please visit their website at www.equityreleasecouncil.com

This is a lifetime mortgage

To understand the features and risks, ask for a personalised illustration.