Lifetime Mortgage

Also known as equity release – a Lifetime mortgage is a way to raise capital from the age of 55 against your principle residential dwelling. A lifetime mortgage isn’t that different from the standard mortgage you probably took out when you originally bought your home. It’s a loan secured against the value of your property on which interest is charged. The equity release can undertaken in tranches or in one lump sum based on what you require funds for. This specialist form of finance is available on properties with an existing mortgage in place or to purchase a new property. The amount of equity available to be released will depend on your age and and the value of the property. Here at Bluechip Financial, this is something we can work out for you.

To talk to a lifetime mortgage expert today, get in touch online or call us on 01202 692222.

Home reversion plans and lifetime mortgages are complex products.  To understand the features and risks of a lifetime mortgage, please ask for a personalised illustration and one of our experienced and helpful advisors can arrange this for you. A lifetime mortgage is a loan secured against your home. Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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    Later Life Lending

    Why take out a lifetime mortgage?

    As you approach your golden years, it’s crucial to have a solid financial plan in place. Bluechip Financial Ltd, understand the challenges that come with retirement and can offer advice on a Lifetime Mortgage product that is designed to provide you with the financial freedom you deserve by unlocking the value in your home.

    You have the option to make monthly interest payments or allow the interest to roll up, offering flexibility to suit your individual circumstances. We can advise you on which option would best suit your needs.

    If you did wish to consider rolling up your interest, the mortgage will not be repaid until last surviving borrower passes away or goes to long term care. The property would typically then be sold to repay the lifetime mortgage. However points to consider are that if you repay early, you may incur early repayment charges.

    What can a lifetime mortgage be used for?

    A lifetime mortgage can be used for various things such as:

    • Funding home improvements,
    • Debt consolidation, including an outstanding mortgage
    • Supplementing retirement income,
    • Providing financial assistance to family members,
    • Covering medical expenses
    • Purchasing a property
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    To talk to our skilled loan specialists, get in touch online or call us on 01202 692222. 

    Office Right

    Why use a broker?

    Bluechip understand the complexities associated with lifetime mortgages. As a reputable mortgage broker, our role is to guide you through the process and ensure you make an informed decision that aligns with your financial goals.

    When discussing whether a lifetime mortgage is the right option for you, we will go through the pro’s and con’s, see some examples below:

    AdvantagesDisadvantages
    Tax Free Cash – available as a lump sum or can be drawndown as it is requiredReduce the inheritance you leave behind (however you can opt for a product which protect part of your equity for peace of mind that your loved ones will not be left with nothing)
    Remaining in your cherished homeCould affect eligibility for means-tested benefits or grants
    Ability to pay off an existing mortgageEligibility criteria, including age and property value requirements, may limit your options.
    No Negative Equity Guarantee available – ensuring that you or your estate will never owe more than the value of your home when it is soldYou will pay a lot of interest as the interest is compounded.
    Purchase a property in your retirementYou are making a lifetime commitment.
    You will need to pay for independent legal advice.

    At Bluechip we pride ourselves on providing transparent and unbiased advice, tailored to your individual circumstances.

    You would need to consider risk factors, we can discuss whether a lifetime mortgage is the right option in terms of raising capital for your needs.