These options provide a number of features and benefits, but as with all equity release products, you and your customer will need to consider how the product will meet their needs and circumstances.
Benefits of a lifetime mortgage:
- Your customer can retain ownership of their property for the rest of their life.
- The money your customer releases is tax free.
- The ‘No Negative Equity Guarantee’ means that your customer will never owe more than the value of their property.
Potential risks of a lifetime mortgage:
- Taking out a lifetime mortgage may affect your customer’s entitlement to state benefits and grants.
- A lifetime mortgage may reduce the size of your customer’s estate.
- A lifetime mortgage is a significant financial decision, not for short-term financial needs.
- A lifetime mortgage may work out to be more expensive in the long-term than selling the property.