1. Stay in your home
With a lifetime mortgage plan, your home is still 100% yours. You’re just borrowing against it. You could even move and take your plan with you, if the new house meets criteria set by your lifetime mortgage provider and you pay the associated costs.
2. Pay off your mortgage
If you still have a mortgage or any other debt secured on your home, the money you unlock will go to clear these first. If you choose to make no monthly repayments, this could make a huge difference to your monthly outgoings, freeing up cash for a more comfortable retirement.
3. Support your family and loved ones
Help your family with a lifetime mortgage. You could either use equity release to reduce the inheritance tax paid on your estate, or use the equity to support your family, children or grandchildren now – rather than waiting to leave an inheritance. Inheritance tax is complex so you should seek professional advice if this is of interest to you.
4. Unlock a tax-free cash sum
Just think of the difference extra cash could make to your daily life. From everyday travel and paying bills to the weekly shop and other living expenses, a lifetime mortgage could help you to enjoy and maintain the lifestyle you’re used to.
5. Pay nothing back during your lifetime
Your lifetime mortgage loan plus any interest is only paid off after you die or move into care, so there are no monthly repayments to worry about. (But you can choose to make repayments if you want to – it’s up to you.)
6. Make life-changing purchases
A lifetime mortgage doesn’t have to be about spending big, but it could be – it’s your money to spend how you like. How about that jet-setting holiday you’ve always dreamed of? Or perhaps you could upgrade your car to travel in style and comfort.
7. Improve your home or garden
Many taking a lifetime mortgage spend their unlocked cash on home or garden improvements or adaptations, and it’s easy to see why. As well as making your home a nicer place to live, adaptations can also help with mobility – getting your home ready for the future. Depending on your home and the improvements you make, you could even add to its value – which your family will benefit from when you pass away.
8. Financial control
Lifetime mortgage rates of interest are fixed for life, so you always know what you’re being charged. And, however much cash you unlock, you’ll never owe more than the value of your home – helping you stay in control of your debt.
9. No need to downsize
A lifetime mortgage lets you free up some of your home’s value without having to sell up and move somewhere cheaper and smaller, meaning you get to enjoy retirement in your family home and avoid the stress and upheaval of moving.
10. It’s fully regulated
Equity release lifetime mortgage plans are fully regulated and supervised by the Financial Conduct Authority (FCA) – providing protection and peace of mind to lifetime mortgage customers since 2004.
What could you do with a lifetime mortgage?
Now you know what’s possible with a lifetime mortgage, see how much equity you could release with our online Equity Release Calculator.
Remember, unlocking cash from your home will reduce the value of your estate and could affect your entitlement to state benefits – such as pension credit, savings credit or even council tax benefit – so think carefully before considering taking out a lifetime mortgage. And remember, while you can choose not to make repayments in your lifetime, interest will build up on your loan over the years. Read more about how much equity release costs.
Get in touch today
Thinking an equity release lifetime mortgage could be right for you? As it’s such a big decision, it’s important to seek advice and understand how it works. Give us a call today and we can check if you’re eligible and put you in touch with an independent expert advisor for advice.
SunLife offers a range of straightforward and affordable products including over 50s life insurance, funeral plans, life insurance, equity release, pet insurance, home insurance, car insurance, ISAs and Will writing services