Lifetime mortgages in Beckenham have become a very popular way for older homeowners to tap some of the equity they’ve built up in their home over the years. It’s a great way to raise capital for any reason you see fit and the best part is that it enables you to retain 100% ownership in your house. If you would rather not dip into your life savings for retirement travel or to pursue other interests a lifetime mortgage is the perfect alternative.
How Does It Work?
Lifetime mortgages are only available to those 55 years of age and older who have significant equity in their home. They are different than a standard home equity loan in that monthly payments are optional. You read that right. If you wish, you can forego monthly payments completely.
It’s called a “lifetime” mortgage because, if you choose not to make payments, the loan amount is recovered at the end of your life. When you die, the property is liquidated with the lender taking what is owed to them from the proceeds of the sale.
A lot of times older folks will leave their home to their children. But if there are no children, or those children are financially comfortable, there is no compelling need to pass the home down to them, and so liquidating it to satisfy the lifetime mortgage balance is not an issue.