lifetime mortgages and equity release

Lifetime mortgages involve the taking out of a mortgage secured against the value of your home - that is why they are sometimes colloquailly known as 'equity release' plans

How Lifetime Mortgages Work

There are no monthly repayments and interest is rolled up over the life of the loan and repaid upon leaving for long-term care or death, at which point the property is sold and the lender repaid. Interest can be fixed or capped. One aspect is that the loan can increase as interest is added over time to greater than the value of the property, although the Safe Home Income Plan (SHIP's) member schemes offer a no-negative-equity guarantee.

SHIP as an organisation was launched in 1991 and is dedicated entirely to the protection of planholders and the promotion of safe home income and equity release plans.

To view the Keyfacts about our Equity Release Sevices document please click here

For more information regarding Lifetime Mortgages, please contact us.

To understand the features and risks of a Lifetime Mortgage/Equity Release scheme always ask for a personalised Illustration.