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A Lifetime Mortgage is a form of equity release which allows you to release some of the value tied up in your home as a tax-free cash lump sum which can be used for most purposes from repaying an interest-only mortgage, helping with your daily cost of living to home improvements, buying a new car, or funding a holiday.

As property wealth becomes an integral part of later life financial planning, innovation is at the forefront of the lifetime mortgage sector with lenders constantly striving to give customers access to a broad range of products that better suit their specific needs and ideally bridge the gap between a lifetime mortgage and a standard mortgage.

And now … a revolutionary new mandatory payment lifetime mortgage has just been launched by Legal and General which they have named their “Payment Term Lifetime Mortgage”.
In essence, the Payment Term Lifetime Mortgage essentially fills the gap for a smaller, although still significant number of homeowners who are looking at lifetime mortgages but were either under 55 years old or needed a higher level of borrowing than available.

The basic concept is that mandatory payments are required for a set number of years before the mortgage reverts to a rolled-up basis, which differs significantly from other forms of lifetime mortgage by being available to customers from age 50 and allowing an increased level of borrowing if required.

For Equity Release Mortgage advice in Newcastle and the surrounding areas, we can help guide you through the process.

Interest Serviced Equity Release Explained

Equity release takes several forms, with lifetime mortgages being one of the most popular. If you own your home and are aged 55 or over, you can use a lifetime mortgage to release some equity from your home.
With a lifetime mortgage, you have the option to not pay back any of the interest accrued until you move into long-term care or pass away, although many people do choose to pay some or all of the interest each month to mitigate the effect of compounded interest on the equity in their home.

To recognise, reward and encourage customers to service some of their interest, another recent product innovation introduced by Standard Life and More 2 Life and other lenders already committing to following suit… is the option to secure a lower fixed interest rate for customers who are willing and able to commit to making voluntary payments towards the monthly interest for an agreed period of time.

Get in Touch

At North East Equity Release, we offer friendly, expert advice on all aspects of lifetime mortgages from standard roll up, to voluntary serviced interest and now mandatory payment lifetime mortgages in Newcastle and the surrounding areas.

With so many different products to consider, it is natural to have many questions about which equity release mortgage is right for you.

We are here to answer all of your questions to help you make an informed decision and provide you with expert advice and guidance as to which product is best for your needs.

For all later-life mortgage advice, we can hold appointments over the phone or in the comfort of your home.

Buying the Retirement Home of Your Dreams: Equity Release in Newcastle

Retirement can present a lot of questions when it comes to finances. Downsizing is the natural choice for many of us as we think about where we might want to spend our retirement; however, while downsizing may result in a smaller, more manageable property, it doesn’t always result in a lower-priced property. In such cases, exploring options like buying a new home with equity release can offer a solution, allowing retirees to access the value tied up in their current property to fund the purchase of a more suitable home for their retirement years.


Later Life Mortgages to Move Home

We specialise in all types of mortgages, however, if you are 55 and over, a Lifetime Mortgage may help you buy a new home. As equity release providers in Newcastle, we can advise you on the process and answer any questions you may have. Using a lifetime mortgage can help you gain the extra buying power you may need to find the ideal retirement home.


Downsizing: Space Not Costs

Downsizing to a more suitable home may not, unfortunately, always translate to a downsized cost. Bungalows can frequently cost more than houses depending on the circumstances. There are, naturally, reasons beyond cost that you might want to downsize. Whether you want to downsize in physical space or just in cost, we can help you find the right property and advise you on the equity release process.


Expert Mortgage Advice

Even if you have had multiple mortgages in the past, navigating the difficulties and complexities of later-life mortgages, with all of the lenders and products available, can be tricky. At North East Equity Release, we have been providing expert mortgage advice for more than a decade. If you are looking at the move to your retirement home, get in touch with us today to discuss your options.


Contact Us

For advice on equity release to buy a new home, get in touch today for expert advice. We can offer guidance and support on equity release in Newcastle and securing a lifetime mortgage to assist you in buying a new home, so get in touch today–appointments can be held over the phone, via video, or in the comfort of your home.

We cover all areas of the North East, including, Morpeth, Cramlington, Gosforth, Newcastle, Gateshead, Washington, Whickham, Low Fell, Bedlington, Blyth, Ashington, Prudhoe, Corbridge, Hexham, Rothbury, Alnwick, Amble, Ponteland, Whitley Bay, Tynemouth, Durham.

Get a head-start by trying our free equity release calculator tool to see how much you could release from your home.

Repaying Your Interest Only Mortgage: Equity Release 

Interest Only Mortgages come with a range of advantages that are attractive to homebuyers, such as lower monthly payments and potential investment opportunities. However, many people who have taken Interest Only mortgages out previously often find themselves coming to the end of their mortgage term without any clear way of paying off the remaining capital on the loan. This is where finding alternative means to repay an interest-only mortgage becomes crucial, ensuring homeowners have strategies in place to settle the outstanding balance when the term ends.

With a Lifetime Mortgage, you may be able to repay your Interest Only Mortgage so you can continue to live in your home. 

You can then continue to pay the interest each month on your Lifetime Mortgage to avoid the effect of compounded interest and the subsequent erosion of equity in your home,  however, you also have the option to make no monthly repayments at all, which can often help if you are nearing, or are already in retirement and therefore may have less disposable income. 

As a qualified and highly experienced mortgage adviser in Newcastle, covering Northumberland, Gateshead and Tyne and Wear, Joanne can guide you through this process. 

Equity Release Explained 

Equity Release is the “umbrella “word used to describe financial products that can enable you to release the “equity” held in your home. 

“Equity” is the value of your home less any mortgage / secured against it.

The only type of “Equity Release” product we provide advice on and recommend is a Lifetime Mortgage as this allows you to retain 100% ownership of your home. This is often referred to as an Equity Release Mortgage. Among equity release companies, we offer comprehensive advice on all questions you might have. 

Interest Only Mortgages: Equity Release via Lifetime Mortgages

With a Lifetime Mortgage, you can unlock a lump sum from your property which can be used to repay the outstanding balance on your mortgage. These funds are completely tax free as the money is already yours in the first place. 

For many people, this can be the only option for paying off the remaining balance at the end of the term of an interest only or a repayment mortgage. 

It’s natural to have questions and concerns about whether this is the right decision for you, and we will help you understand everything you need to know give you the best advice tailored to your circumstances in Newcastle. 

We will always look at all of the options available to you based on your individual circumstances and where possible recommend alternative solutions also.

Get in Touch 

For friendly advice and more information, give us a call today for best advice on repaying an interest only mortgage and equity release in Newcastle. 

Appointments can be held by telephone, video call or  in the comfort of your own home.

Get a head-start by seeing how much equity you could release from your home using our free calculator tool.