Lifetime Mortgages are applicable for homeowners aged 55 and over. This is one of the more popular kinds of equity release mortgage because it allows you to free up some of the value of your property without risk to your home and without repayments if you wish.

The mortgage is repaid from the proceeds of the sale of your house when you pass away or if you should move into long-term care.

If you were to consider this type of equity release mortgage here's a list of pros and cons to consider:

Advantages of lifetime mortgages

• Lifetime mortgage plans are available from the age of 55
• You can receive a lump sum of cash to spend entirely as you please
• You will continue to live in and own your property
• It can mitigate inheritance tax paid on your estate
• With this type of equity release mortgage there is a "no negative equity" guarantee, (NNEG) which means that you will never owe more than the value of your home in the event of a downturn of the housing market and you can never pass on debt to your estate

Disadvantages of lifetime mortgages

• It is possible that the amount of money your family would inherit would decrease
• It could effect the amount of state benefits you are entitled to
• Early repayment charges could be incurred if you decide to repay your loan early - these differ from plan to plan.
• You won't be able to use your property as security for another loan or mortgage

This type of equity release mortgage enables the money released to be tax-free and can be taken in a large sum to spend on whatever you like.

It's particularly beneficial if you're looking to raise a large sum of cash quickly without having to worry about regular repayments for the rest of your life.

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