***FFP are not authorised or regulated to offer advice on lifetime mortgages, however we work closely with a company that is. This company is totally independent and over the years we have passed them many clients who have found their services to be first class. Should we make a referral to the company for you then we will receive a referral fee.
There are two types of equity release scheme available in the market, with several variations on each. The lifetime mortgage involves taking out a new loan secured on your home, and the home reversion involves selling all, or part, of the ownership of your home. In return, these equity release schemes will pay you a lump sum and/or an income.
With a lifetime mortgage, you take out a new loan secured on your property. You do not make repayments, instead interest is rolled up to be paid when the scheme is ended. You continue to own and live in your home.
After you and your partner have died or moved into long-term care, your house is sold and the amount you borrowed, including rolled-up interest, is paid to the lender. Anything left over, after costs, passes to your, or your partner’s, estate.
How much you can borrow depends on the value of your home and your age – the older you are, the higher the percentage of your property’s value you can borrow.
With home reversion plans, you sell all or part of your home, but you continue to live in your home. After you and your partner have died, your house is sold and the proceeds are split between the home reversion provider and your, or your partner’s, estate.
When the property is sold, usually when you die, the home reversion provider receives its payout. If, for example, you sold 80% of your property to them, then they get 80% of the proceeds – including any growth in the value of their share. If you sold 25% of your property, they get 25% of the proceeds, and so on.
The amount you receive is based on your age and health (and your partner’s). Older people will get more, and men get more than women – because of the differences in how long each are expected to live.
ANY PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. COMMERCIAL MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY OR THE PRUDENTIAL REGULATION AUTHORITY.
FFP SolutionsOld Bank Chambers, High Street,St Asaph, LL17 0RD
Registered in England and Wales Company No. 08958626, Registered Address: Unit 32 Llys Edmund Prys, St. Asaph, Denbighshire, LL17 0JAFFP Solutions Ltd is a credit broker and not a lender and is entered on the FCA register under reference 624257You can find FFP Solutions on the Data protection public register under reference: ZA056605
YOUR HOME OR YOUR COMMERCIAL PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
THE GUIDANCE PROVIDED WITHIN THIS WEBSITE IS SUBJECT TO THE UK REGULATORY REGIME AND IS THEREFORE PRIMARILY TARGETED AT CONSUMERS IN THE UK
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