Cambridge Lifetime Mortgages: Which one is right for you?
There are two main types of equity release products: Lifetime Mortgages and Home Reversion Plans. Lifetime Mortgages are by far the most popular type of plan. This is a loan that is paid as a tax-free lump sum and secured against your property. You do not have to make regular payments and, if you prefer, the interest can be added to the capital. The loan plus interest is repaid when your home is sold after you move into long-term care or when you die. In the case of a couple, it is paid back when the last remaining homeowner moves into care or passes away.
Lifetime Mortgages come with a number of features, including the option to pay off all or some of the interest to reduce the total of the loan.
Interest rates for lifetime mortgages are either fixed on-track rates and they come with a no negative equity guarantee. With some Lifetime Mortgages, you can have a drawdown facility that allows you to make smaller withdrawals which reduces the amount of interest that is accrued on the loan.
Whether you want to release your available equity as a lump sum, keep some in a reserve fund, or even ring-fence some of your property for your beneficiaries, one of our qualified equity release advisors will be able to advise you about the best type of plan.
For more information, please see our FAQS.