Older couple thinking about a Lifetime MortgageBy John Cossons, Equity Release Adviser

I have recently completed an Equity Release re-mortgage for a client who took out a plan 12 years ago. This was at a time when Lifetime Mortgage interest rates were much higher.

By re-mortgaging the outstanding balance, which included the initial loan, the rolled-up interest, along with the early repayment charge. This was moved to a rate that is much lower than the original. As a result, this has saved this client tens of thousands of pounds over the rest of their lives. Furthermore, leaving more of the equity in the property to their next of kin. Also, the new Lifetime Mortgage provides them with far more flexibility.

Could this be right for me?

Careful consideration needs to be given when re-mortgaging an existing Lifetime Mortgage. I will look at-

  • The initial loan amount
  • Current interest rate
  • Early repayment charges
  • Total redemption cost
  • Legal fees
  • Clients age
  • Clients state of health
  • Value of home

Recommendations are provided on a case by case basis as no two people’s circumstances are the same. Re-mortgaging an existing Lifetime Mortgage may not always be beneficial, however, it is something that anyone who has an older, existing plan should investigate.

How we may be able to help you with a Lifetime Re-mortgage

arrange a call back logo for Lifetime MortgageWe are a firm of Independent Financial Adviser (IFA’s). This means that the financial advice we offer is unbiased. We will look at all the solutions from the “whole of market”. This is, unlike some advisers that will recommend only their own products or who work from a limited panel.

We will be happy to complete a review, at our expense to see if re-mortgaging would benefit you. Only if you choose to proceed and your case completes would a fee of £895.00 be payable. This fee can be paid to us by your solicitor from the funds released.

Meetings can be arranged at a time and location that is convenient for you. The meetings can be arranged at weekends or early evenings if you wish to involve your family. Also, we can come to your home or we can meet at our office in Kettering, Northamptonshire. We have free parking outside the office.

Additionally, our advisers live and make use of meeting rooms in-

  • Corby
  • Wellingborough
  • Rushden
  • Thrapston
  • Market Harborough
  • Oundle

Home of Equity Release Council who regulate Lifetime MorgageFurthermore, all our Equity Release advisers are proud members of the Equity Release Council and adhere to their high professional standards.

The information contained in this article is for information purposes only and does not constitute advice. No action should be taken based on this information alone.

Finally, if you have any comments about the article “Lifetime Mortgage. Should you re-mortgage?”, then please let us know.

These products are lifetime mortgages or home reversion plans. Equity released from your home will be secured against it.