MCB Financial Later Life

Our Later Life advisers are qualified to give holistic advice across the whole of the mortgage market to find the best solution for your client whether that is a Lifetime Mortgage/Equity Release, a RIO Mortgage or a standard mortgage.

senior-middle-aged-happy-couple-using-laptop-toget-2022-12-05-19-31-05-utc

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.

OTHER FEATURES:

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.

Case Studies

Reviews