Once you are over the age of 55, you definitely have a lifetime worth of work to show for yourself. If you are like many Britains, you probably took out a mortgage many years ago. Judging from the mortgage market at the moment, the Council of Mortgage Lenders estimated that there was at least £37.3bn that was lent to people for mortgages in the final quarter of 2011. This shows that getting a mortgage is still a possibility, but what about younger aspiring property owners? If you want to help your children and grandchildren get on the property ladder, there is a benefit to looking at interest only lifetime mortgages.
Interest only lifetime mortgage schemes have plenty of advantages and these are wide-reaching from all corners and they will affect all aspects of your life. Take a sneak peek to some of the advantages of an interest only lifetime mortgage:
- You don’t have to worry about how much debt is going to be in the mortgage, because an interest only lifetime mortgage prevents any debt being ‘rolled up’ onto your mortgage balance. This is ideal if you do not want to worry about increasing debt for your future inheritance.
- You don’t pay back the capital month-on-month in the traditional sense. This is a definite advantage because essentially you only pay back the interest on what you have borrowed, not the whole loan itself. In retirement not many people want to actually pay off the capital. This gives them the breathing space to have additional disposable income which they can enjoy spending.
- Equity protection: When you get interest only lifetime mortgages, you are keeping more equity in your home for your beneficiaries such as your children, or key family members or close friends who you trust to take care of your home. This is ideal if you want to continue to help your family members after you are gone, by giving them the chance to get on the property ladder.
- There is a fixed rate availability with these types of mortgages, so basically the amount you are paying does not fluctuate from month to month. Therefore, regardless of the Bank of England increasing rates in the future you can fix your monthly payments today, thereby protecting your payments for the future also. This is going to be good news for people who are focused on keeping their budgets in check without overspending. Such schemes are available with Stonehaven Equity Release & can be applied for in England & Wales only.
