A lifetime mortgage is essentially a loan that you take out on your home, which doesn’t need to be repaid until you pass away or go into long-term care. Not only will you be able to free up some of the wealth of accumulated equity in your home, you will also be able to continue to live there, should you wish to.
The question we are frequently asked is; Can you use an equity release lifetime mortgage to buy a home?
And the answer is yes, you can! A lifetime mortgage can indeed be used to purchase a property to live in.
A lot of equity release marketing is directed at those who already own their home. However, it is just as easy to arrange a lifetime mortgage on a property you plan to buy and live in.
This means the equity you already have from any property you have sold, or other existing savings, can be the deposit, with a lifetime mortgage making up the rest of the purchase price.
Using equity release in this way can help you to buy a better home than you could afford with just your own money. For example, bungalows can be more expensive than the house you may be selling. Alternatively, the money can be used to make improvements to a new home, once you have moved in.
The amount you can borrow is just the same as you could release if you already owned the property. Our lifetime mortgage calculator will give you an idea of the maximum available. Please, do be aware that the less you borrow of the maximum loan amount, the lower the interest rate charged for life.
How long does it take to get a lifetime mortgage?
The process to apply for a lifetime mortgage involves an initial meeting to discuss your requirements. This will normally be done in your home. We encourage the involvement of family members or friends, who you wish to be involved. Lifetime mortgages offer very different features to ‘normal’ mortgages, and are designed to run for your lifetime. Once we agree that you wish to proceed, Andy, our Equity Release Specialist, will prepare a report and provide recommendations that meets your situation, requirements and preferences. Every recommendation is tailor made and personal to you.
The lifetime mortgage application will take around the same time as any other mortgage. You can use the same Solicitor to advise you on the equity release legal aspects as you use for the home purchase conveyancing. However, check to ensure they are familiar with modern equity release lifetime mortgage plans and regularly deal with them. Delays can creep into the home-buying process if they are not.
Get in touch
If you would like a chat around your possibilities with Andy, please use the Contact Us form below, or schedule an initial telephone chat using the button above.
Equity Release may require a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.
Andy Wilson Financial Services Ltd is an appointed representative of TenetLime limited, which is authorised and regulated by the Financial Conduct Authority. TenetLime limited is entered on the Financial Services Register under reference 311266.