Last Updated: 18th December 2024
A lifetime mortgage can be a game-changer for homeowners aged 55 and over, offering financial freedom by allowing you to access the value tied up in your home. At AIMS-NI, Northern Ireland’s leading mortgage and loan advisory service, we specialise in helping clients navigate lifetime mortgages with ease. Whether you’re looking for a cash lump sum, a regular income, or a combination of both, we’re here to make the process simple, stress-free, and tailored to your needs.
A lifetime mortgage is a form of equity release that enables you to secure a loan against your property. The loan, plus any accrued interest, is typically repaid when your home is sold—either when you move into long-term care or upon your passing.
You retain ownership of your home throughout, and the funds you receive are tax-free, giving you financial flexibility without the need for monthly repayments.
A lifetime mortgage works by unlocking a portion of your property’s value, which you can access as:
Interest is added to the loan over time and compounds, meaning the total amount owed grows until the home is sold. However, with many lifetime mortgages offering a no-negative equity guarantee, you will never owe more than the value of your home.
Lifetime mortgages are an ideal solution for homeowners aged 55 or older who are looking to:
Flexible Financial Options
Choose how you access your funds—whether as a lump sum, regular payments, or both—to suit your needs and lifestyle.
Retain Ownership of Your Home
Unlike some equity release schemes, with a lifetime mortgage, you remain the owner of your home, benefiting from any future increase in its value.
No Monthly Repayments
Repayment is deferred until your home is sold, helping to ease financial pressures during retirement.
Inheritance Protection
Some plans allow you to ring-fence a portion of your property’s value to leave as an inheritance for your loved ones.
No Negative Equity Guarantee
You’ll never owe more than your home’s value, providing peace of mind for you and your family.
While lifetime mortgages can be highly beneficial, it’s important to consider the potential downsides:
Reduced Inheritance
The amount you leave to your family may be lower, as the loan and interest are repaid from your estate.
Compounding Interest
Interest accrues over the life of the loan, meaning the total debt can grow quickly.
Higher Interest Rates
Lifetime mortgages typically have higher rates than standard mortgages due to their long-term nature.
Impact on State Benefits
Means-tested benefits, such as pension credit or council tax reduction, may be affected.
Early Repayment Charges
If you choose to repay the loan early, additional charges may apply, depending on the plan.
At AIMS-NI, we pride ourselves on providing award-winning, whole-of-market mortgage advice tailored to your unique needs. Here’s why we’re the trusted choice for homeowners across Northern Ireland:
Take the first step toward unlocking the value in your home. Contact AIMS-NI today for a no-obligation chat with one of our expert advisers. We’re here to help you navigate the process with confidence and find the lifetime mortgage solution that works best for you.
Disclaimer
A LIFETIME MORTGAGE CAN QUICKLY ERODE THE REMAINING EQUITY AND AS A RESULT THERE MAY BE NO VALUE LEFT TO PASS ON.
THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.
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