There are a number of different products designed to enable you to release money from your house. The scheme that is most popular is called a Lifetime Mortgage and it is suitable for those looking for a relatively straight forward way to borrow money against the equity that is in their house. The money you borrow will be repaid when you leave your house and move into care, or when you die.
Best Lifetime Mortgage For You
You can choose different types of Lifetime Mortgage according to your requirements:
Conventional Lifetime Mortgage
These popular products provide you with a cash sum in exchange for a share of the equity in your home. They are in the form of a loan but do not require monthly payments like a mortgage because the interest on your loan is rolled-up until the loan is repaid.
Some people like the idea that they dont have to make regular monthly payments, but the debt that will need to be repaid will grow over time.
Interest Only Lifetime Mortgage
With an Interest Only Lifetime Mortgage you opt to pay the interest on your loan on a monthly basis so that the only repayment which will be made when your house is sold is the capital that was exchanged to provide your cash lump sum.
Flexible Drawdown Lifetime Mortgage
A Flexible Drawdown Lifetime Mortgage works in a similar way to a flexible drawdown pension: you will receive a cash lump sum that is secured against a proportion of your home but, instead of taking all the money in one go, you are able to withdraw money from the fund when you want. The advantage to this type of Lifetime Mortgage is that you only pay interest on the money that you have drawn-down, not on the whole amount of your loan.
http://ansop.com/about-lifetime-mortgages/
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