Modern lifetime mortgages, a form of equity release, are increasingly enabling loved ones to remain cared-for in their own home rather than selling it to pay care home fees. If you’re unsure where to start, accredited lifetime mortgages adviser Rachel Gill says it’s all about it’s all about empathy, understanding and security.
I work in an office in Chorley that I share with my husband Richard. In the twenty years since we founded our company, we’ve been through it all from creating our family, growing our business and renovating our office premises, to increasing our qualifications, knowledge and services. I like to think we’ve the kind of understanding, approachability and integrity that only comes with life experience.
Together with our close-knit team working alongside us, we all share life’s ups and downs: celebrations, sorrows, first steps with our kids, last respects for loved ones.
I’m suspicious of anyone who believes you can hang your personality up with your coat on the back of the office door; especially in a job like mine. Assisting people across life’s big milestones: buying your first home, moving, renting, investing, retiring, is a privilege and a big responsibility.
As our first-time-buyer clients started returning to us for their next steps on their journey, mirroring many of our own, we began to realise that the relationships we built with them were as important as our professional qualifications, portfolio, expertise and impartiality.
We know that by the time lifetime mortgages come into your consideration, a lot of experience, conversations, sums, and weighing up have probably happened first. We know it’s not a decision reached lightly.
As independent, impartial mortgage advisors, we, and others in our profession, would never influence your decision. Instead, as trustworthy consultants we are able to show you all the options suited to you and your family’s unique individual circumstances (in human language!), for you to make a fully informed decision. Personally, it’s wonderful to see people empowered by more choice than the often-presumed catch-22 of sell a home to pay for a care home.
Modern lifetime mortgages are enabling increasing numbers of homeowners, typically aged 55 and over, to unlock the value tied up in their property without having to sell it. Lifetime Mortgages can only be discussed and arranged by qualified, regulated professionals, and include many more benefits, flexibility and safeguards than most people realise. So, is it for you?
Release equity from your house to enable continued living at home: Issued by a regulated lender, the funds released by a lifetime mortgage are tax-free, providing drawdown funds as one lump sum or a smaller initial sum and further future ‘drawdowns’. The lender will place no restriction on how the funds are spent, making them ideal for a variety of top-up and financial management choices, including supportive and live-in care. The maximum amount available for release depends on factors including age and the value of your property, you do not have to take the full amount offered.
No repayment pressures: Many lifetime mortgages do not require regular repayments: the loan is repaid when the home is sold, making it a more manageable option for retirees with limited income. A variety of features, including voluntary interest or partial repayment options, to help control costs or if circumstances change, are available to the homeowner in most agreements.
Lifelong security: The homeowner retains the right to live in the property for life, or until they decide otherwise (you can also use remaining equity to move house), so there’s no worries about losing your home. Because you retain full ownership, you benefit from any increase in property value, which could help offset the cost of the equity release loan over time. Some plans allow a portion of the property’s value to be ring-fenced, guaranteeing an inheritance for loved ones
Protective regulation guarantees peace of mind: Equity release/Lifetime Mortgage providers and advisers are regulated, which means the reassurance of transparency and regulation, and securities like the ‘no negative equity guarantee’, which mean that the homeowner or their estate will never owe more than the property’s value at the time of sale. For extra assurance, check your adviser is registered with the Equity Release Council https://www.equityreleasecouncil.com/find-a-member/advisers/ a quick and easy online check
Increasingly lifetime mortgages offer homeowners the comfort and peace of mind of staying, fully cared-for, in their familiar home, neighbourhood, routine, friends and family contact. But we understand it’s a serious consideration among many. That’s why we’re impartial lifetime mortgage advisors, taking the time to find out about you and your family’s circumstances, hopes and concerns. We’re happy to pop the kettle on and meet in our friendly office, your home, a location of your choice, or everyone coming onto Zoom.
With a keen eye on the best deals and providers, Aspect are Equity Release Council-registered members who can offer a raft of options to help make the choice that’s right for you. Remember, you will never be pressured or rushed: a lifetime mortgage might not be the right choice right now. But it’s it can be life-changing to know the choice is there.
Rachel Gill BA (Hons) CeMAP CeRER
Director
Aspect Mortgages
16 St Thomas’s Road
Chorley
Lancashire
PR7 1HR
www.aspectmortgages.co.uk
Contact Us: 01257 812345
Email: [email protected]
Your home may be repossessed if you do not keep up repayments on your mortgage.
Aspect Mortgages is authorised and regulated by the Financial Conduct Authority.
A Lifetime Mortgage may reduce the value of your estate and could affect your entitlement to benefits. To understand the features and risks please ask us for a Personalised Illustration.
There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £495 for a residential or buy to let mortgage or £1495 for an equity release or retirement mortgage.
