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Lifetime Mortgages Durham

We specialise in Lifetime Mortgages in Durham & surrounding areas…

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Lifetime Mortgages Durham

What Is Equity Release?

Equity release is a way of freeing some of the value of your home. This value could be released in the form of a tax-free lump sum or a steady income. You’ll remain in your home and as the owner of your home until you wish to move, enter long-term care or pass away.

The two main equity release products are lifetime mortgages and home reversion plans. We only recommend the lifetime mortgages; a home reversion plan involves selling part of your home in exchange for the sum and becoming a tenant. For most people, this isn’t the right choice, especially in comparison to a lifetime mortgage.

In the past, equity release has been misadvised and therefore justly gained a poor reputation. However, Later Life Money are proud members and strong advocates of the Equity Release Council, which exists to promote the highest standards of advice and has consumer safeguards at its core.

We only advise Equity Release Council endorsed products, which entails multiple important standards:

Fixed or capped interest on lifetime mortgages.

The right to remain in your property for life or until you enter long-term care

The right to move to another property as long as the new property is acceptable to the provider as security for your equity release loan.

The “no-negative equity guarantee” that when your property is sold and all fees paid, even if the amount left is not enough to pay the outstanding loan back, neither your nor you estate will have to pay any more.

Lifetime Mortgages Durham

What is a Lifetime Mortgage?

A lifetime mortgage is essentially a long-term loan that’s repaid using your home once you pass away or require long-term care. Until then, you’ll remain a homeowner and won’t need to move out. Interest will accrue on the loan, but whether you pay it is your choice. Both the loan and interest are paid once you enter long-term care, pass away or choose to voluntarily redeem. Aside from interest, some set-up fees are involved. These may include a lender’s arrangement fee, an advice fee and solicitor’s fees. All of these costs would be communicated and agreed before any commitment was made. These fees can be paid from the advance, and if the proposal doesn’t proceed for any reason, we guarantee that no cost will be payable by you the client. You can receive either a one-off lump-sum payment or a smaller sum, with a cash reserve to draw from.

So, whether you’re planning the holiday of your dreams or helping with a loved one’s university fees, you can choose to receive your sum in the most practical way for you. Entering into a lifetime mortgage (or any form of equity release) will reduce the amount of inheritance you can leave behind. It may also affect your tax position and eligibility for welfare benefits. The lifetime mortgage isn’t the right product for everyone, and as such we don’t recommend it to everyone, but it is a fantastic product when it is the right thing for you.