A lump sum lifetime mortgage could be viewed as the most simplistic and of lifetime mortgages because there is no need to factor in provisions for future withdrawals of cash or repayments.
Moreover, a lump sum lifetime mortgage can be preferable for beneficiaries to ensure their parents or guardians do not overspend unnecessarily.
There are no obligations or fees for consulting our experts
We pride ourselves on taking away the stress and fear of financial planning
We’ll compare and search thousands of deals to get you the best offers, tailored to you
We’re recognised for our fantastic range of products and great relationships with lenders
Our team of specialists will guide you through the process of securing a mortgage, buying a home or taking out a loan – finding the very best deals for you and your family.
A lump sum lifetime mortgage provides you with a cash amount in the form of a mortgage loan.
You won't have to make any repayments on the loan as interest will be added each month to be paid when your home is eventually sold.
This is the most popular kind of lifetime mortgage as it is a loan in which the interest payable is compiled over the full-term of you plan. Therefore, there’s nothing extra to pay for the duration, but the interest is collated year after year until you pass away or move into residential care. This type of lifetime mortgage comes with a fixed interest rate.
These mortgages do not suit everybody and individual circumstances play a huge part on whether they are the best option for you.
Opting for a lump sum lifetime mortgage allows you to release a lump sum of equity in one go. Think of it as taking out a secured loan against your property in exchange for a tax-free lump sum of money.
The interest amount will be fixed according to the amount you borrow, regardless of what happens to the market of Bank of England base rate, so you can be sure you know what’s owed, and it can also be a lower rate than other types of equity release.
The key is that you don't have to pay off the interest until become deceased or move in to permanent long-term care. However, the accumulation of interest, over the duration of the lifetime of the loan, could mean that the total amount payable is quite expensive, especially when compared to a drawdown lifetime mortgage, for instance.
This will be calculated based on the age of the youngest homeowner and the value of your property. In essence, the older you are, the greater the maximum amount of tax-free cash that is available to release.
Trusted by our clients