Lifetime Mortgages
Lifetime mortgages allow the person to take out a borrowing against
their home on an interest only basis and unlike conventional mortgage structures no actual monthly payments are necessary. The loan
is usually repaid when the house is sold or if you die.
These types
of mortgage options are generally aimed at and used by older people. Generally, in order to qualify
for such a product a minimum age limit will be made. This will
vary from provider to provider but expect it to be age 55 years old
and above.
There are 3 main types of lifetime mortgages available these are as follows:
- Home Income Plans (HIP)
- Roll-Up Mortgages, and
- Drawdown Mortgages