Trusted advice on lifetime mortgages: Opening up a world of opportunities

Access the value tied up in your property to achieve your financial goals

Using a lifetime mortgage to unlock the value in your home could help you treat your family, enjoy a dream holiday, visit far-flung relatives, or even just free up some wealth to put towards your day-to-day living expenses.

A lifetime mortgage could be a realistic way of helping you achieve your financial aspirations, and at Broom Consultants, we can help you use one safely and effectively.

Lifetime mortgages are designed specifically for people aged 55 and over and are regulated by the Financial Conduct Authority.

Essentially, they allow you to borrow against your existing equity, releasing funds that you can use however you wish, while you still retain ownership of your property.

You can release as little as £10,000 tax-free and interest rates are fixed for life, so you won’t be at the mercy of fluctuating repayments. There are no affordability checks or income requirements for these mortgages. They are based purely on your age and the value of your property.

You don’t need to make monthly payments on a lifetime mortgage, but you have the flexibility to do so if you wish. The loan is then paid off when you pass away or move out of your home to go into long-term care.

Taking out a lifetime mortgage can help you reach your financial goals

It’s up to you how you use your funds from a lifetime mortgage. But they can open up a whole range of options and opportunities that you may have thought were out of your reach, including:

• Paying off your existing mortgage. This could reduce your monthly outgoings and free up cash to spend on more rewarding things. It could even be an alternative to downsizing, allowing you to stay in your home.
• Making home improvements. Whether your home just needs sprucing up or you’d like to make some additions such as a conservatory, an extension, or a more modern kitchen, a lifetime mortgage could give you the upfront funds to make these happen. You could also look at your outdoor spaces, such as landscaping your garden or investing in new outdoor furniture.
• Buying a new home. You can even use your lifetime mortgage to fund an upgrade to a new home.
• Supporting your family, children or grandchildren. While traditionally they would inherit after you die, using a lifetime mortgage means you can help your loved ones financially as and when they need it. Plus, you can enjoy seeing the benefits your money can bring to their lives.
• Navigating the rising cost of living. Your extra funds could help you with everyday expenses such as travel, food, and household bills.
• Taking a dream holiday. Where have you always wanted to go, what have you always wanted to see? This could be your route to financing the trip of a lifetime. And if you have family abroad, it could afford you the opportunity to visit them or pay for them to come to you.
• Reducing an Inheritance Tax (IHT) liability. You can also use a lifetime mortgage to reduce the value of your estate for IHT purposes. However, IHT planning can be complex, and mistakes can prove costly, so it’s a good idea to speak to your financial planner first.

Regulated products and advice you can trust

You might have read some off-putting stories in the media about lifetime mortgages – sometimes referred to as “equity release” – but the chances are this was a while ago.

Lifetime mortgages have moved on massively since regulation in 2007, with strict rules in place that protect you when borrowing against your home.

Today, you have full peace of mind and protection as lifetime mortgage providers and advisers must be authorised and regulated by the Financial Conduct Authority.

At Broom Consultants, our mortgage team are all trained specialists who are regulated to provide advice on lifetime mortgages. So, you can rest assured that we only recommend lifetime mortgages where appropriate.

Additionally, if your provider or adviser is a member of the Equity Release Council – like we are at Broom Consultants – then you can have the confidence that they’ve committed to a strict code of ethics when providing products or advice around lifetime mortgages.

Furthermore, you’ll benefit from the “No Negative Equity Guarantee”, meaning the interest accrued on your borrowing can never exceed the total value of your home.

This means that no matter how much you borrow, you or your loved ones will never owe more than the value of your property.

Get in touch

Want to discover how a lifetime mortgage could work for you? Speak to a trustworthy financial planner at Broom Consultants today.

We will meet with you (completely at our expense) to discuss your needs and goals, and then help you decide whether a lifetime mortgage is the right option for you.

Contact us at equityrelease@broomconsultants.com or call 01277 202222 (select 1 for mortgages).

Please note

It is important to understand that releasing equity from your home with a Lifetime Mortgage could reduce the value of your estate and may affect your entitlement to state benefits. To understand the features and risks, ask for a personalised illustration.

We are obliged to state that the Financial Conduct Authority does not regulate Inheritance Tax Planning or estate planning.