What is it?

An Income Lifetime Mortgage allows you to release the money tied up in your property to provide you with a regular monthly income. It provides an alternative to lump sum and drawdown products for people who require the discipline of a regular income.

The product allows you to take an initial loan amount, followed by a monthly income over a fixed income term of 10, 15, 20 or 25 years.

The interest rate will be fixed and agreed at the outset for the life of the mortgage. This means it won’t change if rates go up or down during that period.

If your circumstances change, you can choose to stop taking the income at any time, but once stopped, the regular monthly income cannot be restarted. Once the fixed income term comes to an end the monthly income will stop and interest will continue to roll up until the lifetime mortgage is repaid.

Who is it for?

Income Lifetime Mortgages are designed for people who:

• Have a need for a fixed monthly income.
• Require the discipline of having this paid to them automatically each month.
• Require the certainty of a regular monthly income in line with their lifelong routine.

It is not suitable for people who:

• Have savings or investments that can use instead.
• Require a guaranteed income for life.
• Require a lump sum greater than 10% of the total facility available to them.
• Have enough long-term income.
• Claim benefits that may be affected by taking a lifetime mortgage.

The minimum monthly income is £200 and minimum initial loan amount is £2,500.

Your property must be worth over £100,000 or £150,000 for ex-local authority properties.

Interest rates currently start at 4.24%.

Please contact David Griffin on 01253 542948 for further details.