Later Life Lending
LATER LIFE FUNDING SOLUTIONS
We offer Lifetime Mortgages and Retirement Interest Only Mortgages from the full range available to mortgage intermediaries through an experienced team of expert advisers. Whether you are looking to repay an existing mortgage or seeking to release funds for personal use, tax planning purposes or to assist family members, we can assess your circumstances and advise on the most suitable option.
Our commitment is to provide clear, impartial advice and to deliver a first class service both during the mortgage application process and after the mortgage has completed.
We are members of the Equity Release Council and we are authorised and regulated by the Financial Conduct Authority (FCA).
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
We may charge a fee for the advice we provide; this fee will be dependent upon your personal circumstances and will be agreed with you after we have fully understood your requirements. Any fee is usually payable upon successful completion of your mortgage.
Later Life Lending Options
• Home Reversion Plans. These schemes allow the homeowner to sell a percentage or all of their property at below market value and live there rent free until they move into care or die. At this point the home is sold and the reversion company gets its share (or all) of the proceeds.
• Retirement Interest Only Mortgages. These products allow you to borrow a lump sum secured against your home, pay monthly interest on the loan and repay the debt when the borrower (or last borrower for joint applications) dies or moves into care. These mortgages are assessed against retirement income and in the case of joint applications, on a ‘sole survivor’ basis.
• Mainstream Residential Mortgages. An increasing number of lenders are willing to offer conventional mortgage terms to older borrowers and SPF’s expert advisers are able to investigate these options on the borrower’s behalf.
Lifetime Mortgage Loan Purposes
A lifetime mortgage can be used for most purposes, the most common uses of the funds raised include:
• Supporting the purchase of a new main residence
• Repaying an existing mortgage or other debts
• Making home improvements
• Gifting to family
• Capital expenditure e.g. holidays, a new car, a second/holiday home
• Topping-up retirement income
• Funding long-term care
• Inheritance Tax/estate planning
Lifetime Mortgage Flexible Features
Future flexibility is often key when establishing the most appropriate lifetime mortgage lender and product, the following features/considerations may be important:
• Taking funds as a lump sum or on a drawdown basis
• Optional interest payments – regular or ad hoc
• Portability and downsizing protection
• Transparent Early Repayment Charges *(usually applicable for 8 – 15 years)
• Exemptions from Early Repayment Charges* on first death (joint borrowers)
• Enhanced terms for borrowers suffering from certain medical conditions.
*Early Repayment Charges are payable if you redeem your mortgage within a set time.
To find out more about how we can help you with later life lending, please complete your details and we will be in touch.
Later life lending
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RELEASING EQUITY FROM YOUR HOME
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This guide is for you if you are approaching retirement or already retired and are considering using the value of your home to raise a cash lump sum, additional income or both.