What is a Lifetime Mortgage?

February 13, 2023
,

A Lifetime Mortgage is a non-income assessed mortgage, which is only repayable when you either pass away or enter long term residential care, and can be used for the following:

  • Home improvements
  • Gift to family
  • Improve lifestyle
  • ‘Top up’ income / pension

But it can also be used to buy a new home!

 

Picture this…

Your client would like to move to their forever home, but it is out of their budget and they have an existing mortgage which they would like to pay off.

Using a Lifetime Mortgage allows them to clear their outstanding mortgage, while also obtaining additional funds with which to purchase their new property.

The property sale, mortgage repayment and new property purchase are all finalised at the same time!

What’s more, this is without having to make any monthly payments, if they do not wish to.

They may, however, wish to consider paying all or some of the interest off, either with regular monthly payments or ad-hoc voluntary payments.

Once they have found the property they wish to buy, they sell their old property, clear the mortgage and move into their new home.

It will be their new home that will then have the Lifetime Mortgage on it.

The process is very similar to a conventional property purchase and the result is that they have the new property they desire without the need to make monthly mortgage payments, if they do not wish to.

Of course, Equity Release is not right for everyone and I always carry out a thorough financial review to look at all available options.

What I can offer:

I’m looking to work with Estate Agents who may have clients over the age of 55 that could benefit from a Lifetime Mortgage.

As I specialise in Lifetime Mortgages only, I am offering a 50% procuration fee split for any cases that complete. This referral commission amount equates to approximately 1.5% of the total loan amount.

Please get in touch if you have any questions or would just like a friendly chat about how Equity Release / Lifetime Mortgages work and could potentially help your clients.

www.millerlife.co.uk

lee@millerlife.co.uk

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Breaking News

Freehold and Leasehold Reform Act-lessees can control their own destiny

Matthew Pennycock, Minister of State for Housing and Planning, has made a Parliamentary Statement regarding the future progress of the Freehold and Leasehold Reform Act 2024. The Government have formally recognised the “significant complexity of the task” and that the legislation was rushed in at the end of the last parliament and as a result…
Read More →
Rightmove logo
Breaking News

Rightmove’s weekly mortgage tracker 22/11/24

The current average asking price of a typical first-time buyer property is £225,340. For someone taking out an average five-year fixed, 85% LTV mortgage, the average monthly mortgage repayment on this type of home is now £1,104 per month if repaying over 25 years, compared with £1,138 per month a year ago (when the average first-time buyer property asking price was…
Read More →
Estate Agent Talk

The Architecture Of Attention Behind Social Media Addiction

In the digital age, social media platforms have revolutionized how we connect, share, and consume information. Behind their sleek interfaces lies a sophisticated architecture of persuasive technology.  These platforms employ intricate design patterns and technical elements to capture and hold user attention. From subtle visual cues to complex algorithmic systems, every feature serves a calculated…
Read More →
Breaking News

2025 Predictions for the Private Rental Sector

Allison Thompson, National Lettings Managing Director, Leaders Romans Group (LRG) “As we approach 2025, the lettings industry is entering a phase marked by stabilisation and opportunity. Rental inflation has slowed to an average of 3-4% for new lets, reflecting the effects of affordability constraints; renters’ budgets are beginning to limit how much rents can rise.…
Read More →
Breaking News

Response to Matthew Pennycook’s Statement on Leasehold Reform

Yesterday, Secretary of State Matthew Pennycook made a Ministerial Statement on the future of leasehold reform. Responding, Mark Chick, director of ALEP and a Partner at Bishop & Sewell LLP said: ALEP welcomes the ministerial statement which puts in place a timeframe and some objectives for the implementation of the Leasehold & Freehold Reform Act.…
Read More →
Estate Agent Talk

Essential Garage Storage Solutions for Small Spaces

Maximize your garage space with practical storage ideas that keep your items organized and accessible. If you’re dealing with a smaller garage, smart solutions can make a big difference in keeping your space neat and usable. 1.  Wall-Mounted Storage Wall-mounted storage is an excellent way to save space and keep your garage organized, especially in…
Read More →