Lifetime mortgages involve the taking out of a mortgage secured against the value of the home. There are no monthly repayments with some schemes where interest is rolled up over the life of the loan and repaid upon leaving for long-term care or death, at which point the property is sold and the lender repaid. Interest can be fixed or capped. One aspect is that the loan can increase as interest is added over time to greater than the value of the property, although the Equity release councils member schemes offer a no-negative-equity guarantee.
A fee may be charged and we will be paid commission by the lender.
Equity release refers to Home reversion plans and lifetime mortgages. To understand the features and risks as for a personalised illustration. For Equity Release we charge an upfront fee of £750 and also get paid commission by the provider.