Fixed repayment lifetime mortgages

I have no dependednts or children, so I'd like to make use of the equity in my house to finance a better lifestyle. I'm 58, and my house is worth about

200,000 and I have no mortgage and am in fairly good health.

I've been reading up on the basics of lifetime mortages and home reversion plans, but I'm having difficulty finding much info on fixed repayment lifetime mortages.

Does anyone know what the repayment amounts would be, in relation to various sums I might decide to borrow? In other words, what sort of percentage of the amount borrowed is the agreed repayment amount?

What are some things to look out for when choosing one of these fixed repayment lifetime mortages, (apart from the obvious one: the relation of the repayment amount to the borrowed amount)?

Thanks for any input,

Jake

Reply to
JakeD
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I'm not sure I understand the question! I've only come across equity release schemes under which *they* pay *you* an income for life, and they then own the house when you die. Isn't that what you're after?

If you're borrowing a lump sum, and making repayments so that you continue to own the house, what is going to happen to it when you die?

Reply to
Roger Mills

Roger Mills wrote in news: snipped-for-privacy@mid.individual.net:

There are various kinds of equity release schemes, most of which fall under two basic categories:

1) Home reversion plans 2) Lifetime Mortages

A sub-category of the Lifetime mortgage, is the fixed repayment lifetime mortgage, where you owe the lender a specific sum, after they lend you another specific sum. Thus it differes from the regular type of lifetime mortgage, where interest payments owed, at a predetermined rate are added to the amount initially owed to the lender. You don't make any repayments until the house is sold, but the amount you owe grows exponentially, due to the added interest-due.

Jake

Reply to
JakeD

Fair enough. I hadn't come across those - so obviously can't answer your original question, I'm afraid.

Are you saying that you borrow £X and then owe £Y when you die, regardless of whether you live for another year or another 100 years?

Reply to
Roger Mills

Roger Mills wrote in news:9hgaatFe3bU1 @mid.individual.net:

I'm afraid I know zilch about fixed repayment lifetime mortgages, because I've been unable to find a source of info, but I *think* it is set up that you borrow x and agree to pay y when you die, or when the house is sold. For all I know, it may also be possible to settle the debt at any other time.

It seems logical that Y will be a hell of a lot bigger than X.

I hope someone here who knows about these things can shine some light on the subject.

Jake

Reply to
JakeD

The Daily Mail and others have regular articles and "free" guidance books. The one that struck me was:

  1. they lend you money on an ad-hoc basis (as you need it) - as long as it is much less than house value.
  2. the money you borrow incurrs ~7% interest. Loan repaid / house sold on your death.

Careful, if you live a long time, then 7% can increase a lot.

Reply to
James

As your age is 58 and you wish to use your equity for getting finance ,I think reverse mortgage is the best option.It is of two types: One is of fixed rate and second is of adjustable rate .In fixed rate the rate will be fixed and not in relation with market ups and downs .And,in adjustable ,your rate varies according to market ups and downs.Now the decision is yours what you prefer.

Reply to
Daniel01

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