22 Oct Equity Release: Lifetime Mortgages London – an explosion of choice
London Equity Release Broker – Mortgage Choices Now Available
With later life (equity release) mortgages increasing in popularity, product choice is increasing, meaning good financial advice is more important than ever….
Taking out a Lifetime Mortgage allows you to maintain ownership of your property whilst boosting your later life finances, giving you freedom and peace of mind to enjoy your retirement. Lifetime mortgages now make up around a third of all new mortgages by customers in their mid-fifties and beyond.
2018 saw for the third successive year, the lifetime mortgage segment have the biggest annual increase in customer numbers (25%) compared to all other mortgage segments – enabling more people over the age of 55 to access mortgage finance, backed by regulated financial and independent legal advice.
This compares to home-mover activity dipping 2% and buy-to-let purchases declining for the third year in succession.
As consumer demand has grown, so has product innovation – from 86 options available at the beginning of 2018, by January 2019, the product range has more than doubled to over 220 options.
JUFS – London Mortgage Company and Equity Release Brokers. For an initial consultation at no charge, speak to our experienced advisers on 020 7562 5767 or should you prefer, you can send our team a message via our Contact Form.
Lifetime Mortgages London and UK Nationwide
Flexibility seems to be key here, with a notable rise in products offering downsizing protection, should customers wish to repay their loan when they buy a smaller property later in life.
Regular interest payment options, allowing customers to minimise costs in the long term has been an area of product development, and there has been the introduction of regular income lifetime mortgages, similar in style to regular payment pension products to help customers meet monthly financial commitments and supplement other income.
Inheritance guarantee and voluntary or partial repayments with no early redemption charges have also been areas of growth with almost 9 in 10 (87%) new plans now allowing customers to make early repayments without incurring a charge.
RIO Mortgages London
Further developments include the launch of Retirement Interest Only (RIO) mortgages, a regulated product with full underwriting, but no term on the loan – so it should “see you out”. These are based on full affordability checks, but with lower overall costs of borrowing in comparison to Lifetime mortgages.
All this product innovation is fantastic, providing the customer with more choice and options than ever before. However, a lifetime mortgage is not a ‘silver bullet’ for every retirement need, and should to be considered in the context of a broader retirement picture, considering personal and family needs.
At Just Us Financial Solutions, our aim is to advise you on the best options for your retirement, considering all these needs to meet your personal financial goals. If you would like to talk to us in more detail about a lifetime mortgage, please get in touch on 020 7562 5767.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
EQUITY RELEASE WILL REDUCE THE VALUE OF YOUR ESTATE AND CAN AFFECT YOUR ELIGABILITY FOR MEANS TESTED BENEFITS.