How do you strike that perfect balance between saving for the future and living comfortably? For many people, the answer is a lifetime mortgage. Here's what you need to know. 

A pension that lasts a lifetime

pension that lasts a lifetime

There's a skill in finding the correct balance between living comfortably today and preparing for the future. This is especially true when it comes to those in retirement who are living for an uncertain period of time on a fixed pension. The fear of outliving their money is a very real concern facing a large proportion of retirees today.

Home equity is being factored into retirement planning as a way to alleviate the fear of running out of the money required to live comfortably. Your property can help provide a backstop to your traditional pension savings.

One of the options to access this wealth in your property is a lifetime mortgage. It allows you to draw tax-free money from your property in an initial lump sum, with the option to take more in smaller amounts and as when required.

These lifetime mortgages don’t usually come with monthly repayments, though with some you have the option to make repayments if you wish. There's no fixed term on the mortgage as they're designed to run for your lifetime.

A lifetime mortgage is available to UK homeowners aged 55+ and you can spend the money as you wish. It’s important to remember that by taking equity out now, there will be less to leave as inheritance.

 

How do people use a lifetime mortgage?

lifetime mortgage

Some customers use them in smaller amounts to provide a safety net and comfort factor, knowing that they have the option to draw cash on a rainy day and to top up income. It helps their fear of running out
of money in retirement and allows them to plan accordingly.

Other customers use them to clear debts and free up the cash that is spent repaying debts every month.

Many people are using them to provide an early inheritance to loved ones—and being able to see first hand the impact and help that they are able to give to their family or charitable causes.

While some customers kick-start those home-improvement projects, others use it to be happy in the comfort of knowing their holidays and travel plans are booked and on the horizon.

 

To find out more...

...and discover how you can unlock the wealth tied up to your property, request the Reader's Digest Guide to Equity Release by calling 0808 168 9297*

 

Find out how much you can release instantly

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*A lifetime mortgage may affect your entitlement to means-tested state benefits. To understand the features and risks, ask for a personalised illustration. Retiredom provides initial advice at no cost and with no obligation. Only if you choose to proceed and your case completes will we charge an advice fee, currently not exceeding £1295.

 

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