Lifetime Mortgages (Roll Up Mortgages)
A lifetime mortgage (often called a roll up mortgage) is a special type of loan for people usually aged over 55. This allows them to release equity from their home by means of a secured loan. It only requires paying back the loan (together with any interest if applicable) once the property is sold on death or permanently moving into care etc. In the case of joint applications, it would be on their surviving partner’s death.
The benefits with a lifetime mortgage are that you
- Don’t sell your property in return for money raised
- You are allowed to remain living in the property for the rest of your life unless you go into care permanently
- You can take the money as a lump sum or in a number of small payment
- You can choose a drawdown lifetime mortgage which allows you to access certain amounts of your loan whenever you need it. This option is particularly useful to save on ‘interest roll up’ since you will only pay interest on the amount you have borrowed up to the present. The remainder of the loan you haven’t accessed yet will not be charged with interest
A factor to take into account with a lifetime mortgage (rollup mortgage) is that the interest you owe can grow quickly. Eventually this might mean that you owe more than the value of your home, unless you have a no-negative equity guarantee. Our lifetime mortgage products are registered with SHIP (Safe Home Income Plans) which means that they have a No Negative Equity Guarantee.
Why consider Lifetime Mortgages (Roll Up Mortgage) through Halo?
Every client who considers a lifetime mortgage has unique needs and dreams; whether they want the money for themselves or to help family, whether they need a lump sum of money or regular cash.
Learn more about the benefits of equity release with lifetime mortgages
