Lifetime Mortgages (Equity Release)

Common Uses for Equity Release

Unlocking your home's equity can serve various purposes, including:

• Enhancing Retirement Income: Improve your financial future by supplementing your retirement income.
• Home Improvements: Invest in property improvements to enhance comfort or make any required modifications.
• Supporting Family Members: Provide financial assistance to loved ones, whether it's helping with a deposit or funding major expenses.
• Pursuing Leisure Activities: Fulfil lifelong dreams, whether it's travel, hobbies, or leisure pursuits.
• Paying for Care: Utilise the equity in your home to cover the costs associated with receiving care at home or in a care facility, providing financial support for your well-being or that of your loved ones.

Eligibility and Criteria (not an exhaustive list);

• Age: You (or the youngest homeowner in the case of joint ownership) must be 55 years old or older.
• Property Value: There's typically a minimum property value requirement, often £100,000.
• Property Type: The property should be your primary residence and meet the lender's criteria (e.g., standard construction).
• Outstanding Mortgage: If you have an existing mortgage, it must be repaid using the funds from the lifetime mortgage.

Types of Lifetime Mortgages

When considering a lifetime mortgage, there are several options to choose from, including:

• Roll-Up Lifetime Mortgage: Interest is added to the loan amount, which increases over time. The total loan, including accrued interest, is repaid when the property is sold.
• Interest-Only Lifetime Mortgage: You pay the interest each month, which prevents the loan amount from increasing over time. The original loan amount is repaid when the property is sold.
• Drawdown Lifetime Mortgage: Allows you to release funds gradually, as and when needed, reducing overall interest costs.
• Enhanced Lifetime Mortgage: Tailored for individuals with health conditions or lifestyle factors that may qualify for a higher loan amount or more favourable terms.

Equity Release Council Membership and Safeguards

Baxter Financial Services Ltd is proud to be an active member of the Equity Release Council, ensuring the highest standards of professionalism and consumer protection. Some of the protections given to you include:

• No Negative Equity Guarantee: You or your beneficiaries will never owe more than the value of your property.
• Independent Legal Advice: Before proceeding, you'll receive impartial legal guidance from a solicitor of your choice.
• Financial Advice Requirement: We advocate for informed decisions, necessitating advice from a qualified financial professional.
• Voluntary Flexible Repayment Options: Tailored repayment plans provide flexibility to meet your evolving needs, should you wish to make voluntary overpayments.
• Security and Peace of Mind: Rest assured knowing that your interests are protected by industry-leading regulations.
• Safe and Transparent Products: Modern lifetime mortgage products come with clear terms and conditions, providing you with complete transparency about the arrangement.