Many people find themselves needing access to more money in retirement but if you don’t have enough savings what are your options?

 

Well one option could be to use the value of your home to boost your finances. A Lifetime Mortgage is a way of extracting money out of your property by putting in place a loan secured on your home. This could be a ‘one-off’ lump sum or a facility to draw on regularly to supplement your income.

 

It’s only available to people aged over 55 and does not need to be paid back until your property is sold or if you have to move into a care home. In the case of jointly owned property, it is only triggered when the survivor either dies or goes into long term care.

 

No income proof is required and your credit status is not considered. Your house can become part of your retirement planning! How attractive is that?

 

Unlike a regular mortgage you can choose whether you wish to make monthly repayments. If you choose not to, interest rolls up every year until the home is sold leaving you extra money each month that might previously have been spent on your mortgage payments. Alternatively, you can control the role up of interest by making regular repayments, or Lump sum repayments, of up to 10% per year, just like a normal mortgage, to help maintain the equity in your property.

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You retain ownership of your home, and the equity in your home, after repayment of the mortgage on your death which can pass onto your beneficiaries. Your loan, plus any interest, will never exceed the value of your property. There is called a ‘no negative equity’ guarantee.

 

Obviously using your home to supplement your retirement income should not be your only strategy, but knowing that it can help make life in retirement more comfortable might let you see the equity in your home in a whole new light. It is not just a place to live, but one of the many tools that you might want to use as a way of planning for your future.

 

Interested? If you want to know more One Stop Finance Group can introduce you to an Independent Lifetime Mortgage specialist who has access to 12 different providers and 60+ solutions. Call us on 020 8441 2605, or 01442 232272, to start finding out if you could release some of the value locked up in your home.