Lifetime Mortgages FAQ’s

The Key Solutions team is here to advise and guide you on all aspects of Lifetime Mortgages, from initial advice on whether it is the right option for you, selecting the type of product that will meet your needs and throughout the entire application process.

To help we have compiled a list of questions we are frequently asked by our clients.  If you cannot find the answer to your question, give us a call on 0800 138 5856 or drop us an email and one of our team will be happy to help in any way they can.

We are here to make life easier and better for everyone.

I’ve heard negative stories about equity release, is it safe?

As with any type of mortgage product there are positives and negatives in utilising equity release and it may not be suitable for everyone, it very much depends on your individual circumstances and you should seek professional mortgage advice.

Our qualified advisors will undertake a full review of your circumstances with you and your family and explain all of the positives and negatives to you as part of our consultation process.  We are also members of the Equity Release Council (ERC) which provides additional peace of mind as it ensures that additional guarantees and standards are in place.

Finally, both types of equity release product, Lifetime Mortgages and Home Reversion Plans are fully regulated by the Financial Conduct Authority (FCA).

What is a home reversion plan?

A Home Reversion plan is another way of releasing equity from your home in retirement but works in an entirely different way to a Lifetime Mortgage.

If you take out one of these plans, you sell all or part of your home to the funding provider (known as a reversion company) in exchange for the cash lump sum.  The provider will take ownership of your property and in exchange grants you the right to live in your home rent-free for as long as you wish.

As with Lifetime Mortgages the cash you release is tax-free and can be used for any purpose.

Home Reversion plans as with all mortgage products have both positives and negatives that you should consider and may not be suitable for everyone, it very much depends on your individual circumstances.

Our advisors are qualified to advise you in relation to Home Reversion plans as well as Lifetime Mortgages, for help and advice give us a call on 0800 138 5856 or drop us an email and one of our team will be happy to help in any way they can.

If I take out a Lifetime Mortgage does it mean I no longer own my home?

No, with a Lifetime Mortgage you continue to own your home although the lender will take a charge over the property.

Can I take out a Lifetime Mortgage if I still have an existing mortgage outstanding on my home?

Yes, however as part of the mortgage terms and conditions you will need to use the funds released to repay any outstanding mortgage on your home first with the balance of the funds then being available to you.

How much money am I able to release from my home?

The amount you are able to obtain will depend on a number of factors including your age, the value of your property, your health and lifestyle.  To find out how much you could borrow and whether a Lifetime Mortgage would be suitable for your circumstances, call our team on 0800 138 5856 to arrange an initial free, no obligation appointment.

What will happen when I die?

If you have a joint plan and you die before your partner, the plan will continue and nothing will change.  If the plan is in your sole name or your partner has already passed away your house will be sold, the mortgage provider will take their money from the proceeds of the sale and the balance will go to your estate.

Can I guarantee money at the end for my family?

Whilst you typically will not know the amount of any surplus funds that would be available for your loved ones, you can protect a percentage of the value of your home at the outset when you take out the plan.  Our advisors will discuss these options with you as part of the initial consultation process.

What happens if I need to move into long-term care?

If your plan was taken out jointly with your partner and you need to move into long-term care, your partner would be able to continue to live in your home without impacting your means test for long-term care fees.

If the plan is taken out in your sole name or your partner has already passed away or moved into long-term care, your home would be sold and proceeds used to repay the loan with the balance going to your estate.

Do I have to make repayments to the loan?

No, there are no monthly repayments to make.  You can however choose to make payments of some or all of the interest by taking out an Interest payment plan which would reduce the amount of the debt at the end of the plan.

The loan, plus interest accrued are repaid when your home is sold.

Does having a Lifetime Mortgage prevent me from moving home in the future?

No, you can move home should you wish to do so.  You can either repay the amount owed or transfer the plan to your new home.  You may have to repay early repayment penalties and each providers criteria around moving home will be different – your advisor can explain all of this to you.

What are the costs involved in taking out a Lifetime Mortgage?

We do not charge any fees for the advice and service we provide to you.  You are likely to incur costs for surveyor’s fees and solicitor’s fees should you decide to proceed with a Lifetime Mortgage.  There may also be an arrangement fee from the mortgage provider.  Our advisor will explain all of the fees to you as part of the process.

Can my family be involved in this process?

Yes, it is important that you discuss your plans with your family and that they are involved fully in the process.  We encourage all of our clients to bring family members with them to the initial appointments and if they are unable to attend can also speak to them directly about your plans and clarify any questions they might have.

I already have a Lifetime Mortgage, can I switch to another plan?

Yes, you can move to a different provider either to change the features of your arrangement or to reduce your interest rate you are being charged.  You may have to pay an early repayment penalty on your existing plan should you decide to switch provider.

Our advisors can review your existing plan with you to see if it still meets your needs and explain all of the pros and cons of moving to a new provider.

Our Clients Say…

 It’s always great to get positive feedback from happy clients and we are lucky enough to receive it time and time again.  Here’s just a small selection of our clients’ opinions.


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Get In Touch

Find out more about lifetime mortgages by calling the team on 0800 138 5856 for free. Or send us an email, we guarantee to respond to all enquiries within 24 hours.

Get In Touch

To get more help call the gang on 0800 138 5856 for free. Or send us an email, we guarantee to respond to all enquiries within 24 hours.