Lifetime Mortgage Reviews
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SandJC
Posts: 5 Forumite
As our interest only mortgage is due to mature, we have been told about a Lifetime Mortgage with Legal & General. We know the interest rate is high (5.5% Fixed rate) but this is a possible solution for us to stay in our current home. We intend to pay the interest 4 times per year so that the loan will not increase and will always remain the same.
The deal we are being offered is until the death of both parties or until both parties enter care home facilities. We can even reduce the loan by up to 10% per year. We can sell the house at anytime and clear the debt, although early repayment fees are extortionate at 25%. However if one of us passes away then the other person can sell up and move on, within 3 years, without incurring those early repayment fees.
It all sounds very interesting but I'm no expert so I really value hearing others opinions.
The deal we are being offered is until the death of both parties or until both parties enter care home facilities. We can even reduce the loan by up to 10% per year. We can sell the house at anytime and clear the debt, although early repayment fees are extortionate at 25%. However if one of us passes away then the other person can sell up and move on, within 3 years, without incurring those early repayment fees.
It all sounds very interesting but I'm no expert so I really value hearing others opinions.
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Comments
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There is a post further down by someone who took out a lifetime mortgage and regrets it, although at least you plan on paying off the interest. I'm sure there are better ideas though. How had you planned on paying off your mortgage originally? Is that no longer a viable option? Otherwise, is downsizing not a more attractive option than living in debt for the rest of your lives?0
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It all sounds very interesting but I'm no expert so I really value hearing others opinions.
These things are normally bought via IFAs or some mortgage brokers. Have you spoken with one or them yet?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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