MCB Financial Later Life
WHY CONSIDER A LIMETIME MORTGAGE
TAX FREE CASHYou can raise money for any legal purpose to use as you wish. If there is a mortgage secured on the property then this will need to be cleared first. Some examples: Fund home improvements Gift to family members Fund care costs Consolidate debts Repay an interest only mortgage
NO MONTHLY REPAYMENTSUnless your client chooses otherwise then there are no monthly repayments. The loan plus rolled up interest is typically repaid when the last remaining client dies, goes into long term care or sells the property.
FLEXIBILITYA wide selection of plans and features available to suit many clients needs including making regular payments to maintain the interest so the debt does not grow or even repay the mortgage to guaranteeing an inheritance.
STAY IN CONTROLYour client retains full ownership of their property and the amount owed will not exceed the property value.
WHO IS ELIGIBLE
A lifetime mortgage enables homeowners aged 55 or older to release equity tied up in the value of their home, tax free. The basic qualifying details are:
Aged 55 or older
Live in the UK
Property value of £70,000 or more
Remember there is no affordability testing on a Lifetime Mortgage.
TYPES OF LIFETIME MORTGAGE
LUMP SUM MORTGAGEThe loan is secured against the property to provide a tax-free cash lump sum, with typically no monthly repayments to make. Compound interest is added to the loan until the plan comes to an end. The loan plus interest is paid back when the home is sold. Clients can typically release between 5 and 55.5% of the value of their property with a lifetime mortgage, depending on their age, health and lifestyle.
DRAWDOWN MORTGAGESimilar to lump sum lifetime mortgages but with added flexibility. After an initial release, your client can choose to ‘drawdown’ the cash in stages. The interest is only added on the amount released so it adds up more slowly.
PURCHASESLifetime Mortgages can be used to buy a property and are portable too.
ENHANCED PLANSThis could help access a higher loan to value so raising more funds that are needed due to specific health conditions and lifestyle choices.
CAPITAL REPAYMENT PLANSYou can repay a percentage each year without penalty which could mean paying the mortgage off entirely without incurring an early repayment charge
INTEREST PAYMENTSYou can elect to pay the interest each month or on an adhoc basis which would stop the debt from growing. Or you can pay part of the interest which would slow down the debt from growing.
DOWNSIZE PROTECTIONIf they wanted to move home the loan can be paid back early.
INHERITANCE PROTECTIONYou can guarantee an inheritance from the equity of the property by ring fencing a percentage of the value of the home.
Client was referred by a mortgage broker who had previously arranged bridging finance for the client but owing to a change of heart, the client no longer wanted to dispose of investment properties to exit the bridge.
The client was keen to protect the income that their investment properties provide them and having bought a new residential property outright with the bridging loan meant an Equity Release arrangement was a great alternative to the sale of their investment properties. However, on the face of it, equity release was not an option owing to one of the applicants being acted for by a power of attorney. This typically creates a high level of restriction on what the funds from Equity Release can be used for and/or Court of Protection involvement being required. The adviser however was able to present the case scenario to a selection of lenders and ultimately gained commitment from one of them to proceed, and without Court of Protection involvement, as they were satisfied with the sequence of events that lead to the need for an Equity Release arrangement to repay the bridge.
I referred a case to MCB LIfetime. This was a later life lending enquiry for a lady who appeared to be trapped in an Equity Release contract for which she was paying an extortionate amount. The application had very challenging aspects for which it was difficult to find a solution but ultimately this was achieved through a standard mortgage arrangement which has given my client total peace of mind. The case was dealt with by MCB and I cannot speak highly enough of the expertise and tenacity he showed in getting this over the line.
Julian Mann from MCB has been guiding us through our application for a lifetime mortgage. The service we have received has been second to none. Always ready to explain and help at the end of the phone. We spoke to 3 other independent financial advisors at length before deciding to go with MCB and arrange our mortgage. We have experienced a few blips along the way with our mortgage provider and solicitors and Julian has very kindly put our mind at rest acting on our behalf to sort out any problems.
Excellent company to deal with. Have used them twice for different things now. Recently Nigel Broom helped me with Equity Release. Honest, transparent. Friendly and easy to talk to made sure i had a clear understanding every step of the way. And soooo patient when i needed things explained again … and again! Honestly do not believe there is better out there. Very reasonable costs. Only wish i had known about them years ago. 100% recommend to all.
Wanted to release equity from our home to assist daughter buy a property. We received expert knowledgeable advice from Ed who provided a comprehensive report tailored to our needs. Once we agreed things proceeded at a good pace. Would definitely recommend MCB for financial advice.