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Lifetime Mortgages and Equity Release

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Are you considering a lifetime mortgage but you're not sure of the details?

Our Expert Advisers Robert Sherlock and Anne Preston answer your top questions on equity release and lifetime mortgages:

The lifetime mortgage market is experiencing rapid growth as more people look to boost their retirement income and improve their standard of living. According to the Equity Release Council a total of 3.92 billion pounds of housing equity was withdrawn by older homeowners in 2019.

What is a lifetime mortgage?

A lifetime mortgage also known as equity release is when you access the equity or 'cash' in your home as a tax-free lump sum or as a regular income to enhance your pension.

It's a mortgage that is only required to be repaid on death, going into long term care, or moving property.

Who can have a lifetime mortgage?

Lifetime mortgages are available to homeowners aged 55 and above. There may also be a minimum property value requirement.

What can a lifetime mortgage be used for?

The cash taken from equity release, or a lifetime mortgage, can be used for any of the following:

  • home improvements
  • a holiday
  • repaying the original mortgage
  • repaying debt
  • gifting deposits to family or friends
  • an emergency fund

The money can not be used for investment purposes.

Do I still own the house?

Yes, you do still own your house. The mortgage company only requires the loan to be redeemed on death, long-term care or moving home. There are also ways to protect inheritance for family and friends.

Are there any pitfalls?

Expert personalised advice is vital when considering equity release and lifetime mortgages. Borrowing against the equity in your home can release much needed funds to improve your quality of life in retirement or even help out family members but the potential pitfalls must also be understood. At Stan Sherlock Associates we take a holistic view of your retirement finances before recommending a lifetime mortgage product to you.

Lifetime mortgages aren't right for everyone. But we can offer a thorough understanding of the benefits, drawbacks and costs and, if suitable, find the right deal for your individual circumstances.

What should I look for in an adviser?

All professional advisers dealing with equity release or lifetime mortgages must have a specialist qualification. At Stan Sherlock Associates Director and Practice Principal, Bobby Sherlock, and Mortgage and Protection Adviser, Anne Preston, are licensed to advise in this area.

Stan Sherlock Associates is a financial planning firm based in Carlisle and invests regularly in updating the skills and qualifications of its team to ensure clients receive the highest levels of advice.

Stan Sherlock Associates | For lifelong financial success

Please contact one of the team on 01228 598821 or email us on This email address is being protected from spambots. You need JavaScript enabled to view it. to discuss your individual requirements.

You will need to take legal advice before releasing equity from your home as Lifetime Mortgages and Home Reversion plans are not right for everyone.

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Thursday, 29 September 2022

Disclaimer

The information on this website is for use of residents of the United Kingdom only. No representations are made as to whether the information is applicable or available in any other country which may have access to it.

Contact Us

A: 26 Lowther Street, Carlisle, CA3 8DA
T: 01228 598821
E: info@stansherlock.com

Company Information

Registered Address: 26 Lowther Street, Carlisle, Cumbria CA3 8DA
Company Number: 05718865

STAN SHERLOCK ASSOCIATES LTD IS AN APPOINTED REPRESENTATIVE OF OPENWORK LIMITED, WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. SOME BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.