An interest only lifetime mortgage is like a regular lifetime mortgage, except that you will have to make monthly payments. Once you pass away the loan is paid in full. In order to find out if you can get an interest-only equity release, contact lenders such as Stonehaven.
Finding and Applying for Help
When it comes to applying for an interest only lifetime mortgage it may be difficult as a lot of lenders do not offer them to retired people. By finding the right lender, you may become fortunate enough to find one. One way to find an interest-only lifetime equity release is by searching over the Internet. Locate an equity release website that allows you to compare schemes from several companies.
• Click on interest-only equity release scheme to find out which companies offer them.
• You can also contact an London equity release adviser in your city to see if you can obtain one.
When it comes to making equity release decisions, it is best to speak with a professional. By going at it alone, you can make a mistake that can cause you to lose your home. On the site, it will have an interactive map that you can pinpoint your city and locate an equity release adviser. It will have the equity release adviser’s contact information.
Benefits to Interest Only Products
The benefits of getting an interest-only lifetime equity release are that you not only can remain in your home while making payments, but you may release more equity than with a regular lifetime mortgage. When you receive the money, it can be used for anything that you like. Most retired people use the money to help them with their monthly bills. Also, you will still own the property, which means if it increases in value, you will benefit from it.
Disadvantages of this Lifetime Mortgage
There are downsides to an interest-only retiree mortgages including the amount that you leave to a loved one may be less. If you fail to make your payments on time each month, your home can be repossessed. If you know that you will be late making a payment, always contact the lender. Also, you may have to pay an early repayment fee if you happen to repay the loan early.
Get Proper Advice
Advice is free. Take advantage of it when your family inheritance is at stake. Do not let your children deal with losing their childhood home because they were unaware of your retirement decisions or because you chose the wrong product.
Independent financial advisers can help you locate proper lifetime mortgages for your situation. You can ask questions with regard to specific details and worries. You can also find out if there are different products on the market that might work better such as home reversion where you sell the home for money, but do not risk the repayment of a principle balance on a lifetime mortgage.
Speak with your family so they are aware of what is going on. Perhaps your children are able to help you during retirement when money is tight to avoid selling a piece of your home or taking out a new mortgage on it.
It is important that you not leave a difficult situation that might be unresolved or cause dissatisfaction among the family left behind.
Companies with these Loans
Remember one important detail about any lifetime mortgage product: the companies supplying these mortgages are in the business of making money. They provide a long term investment because the rewards are expected to be very fruitful for them. This means that you should look out for yourself and your family, not bend to the first provider you come across willing to offer an interest only product.
Calculate the Result
You have only calculators for mortgages and retirement mortgages. Take a minute to assess your situation, the potential value of your home, the requirements of releasing up to 80% of the equity, and the monthly interest payment. This assessment will help you make a proper decision regarding your mortgage needs. As you do this consider a pro and con list for your particular situation as another way to fully consider your options.
As you can clearly see there are many factors to take into account and plans to consider. Many people thinking they know best have realised at a later date they have made an incorrect decision. It may not be too detrimental, however it could still have cost them, or their beneficiaries £1,000’s over the longer term when it comes to interest only lifetime mortgage.