While no two people’s equity release needs are likely to be exactly the same, an enhanced equity release lifetime mortgage plan takes into account the exact circumstances of applicants to ensure the best possible plan for them.
We’ll take you through the details of how enhanced lifetime plans work, answer some common questions and explain what the next steps should be if you think an enhanced lifetime plan might be the right one for you.
What is an Enhanced Lifetime Plan?
You may have heard of enhanced lifetime equity release plans being referred to as ‘impaired’ lifetime plans or mortgages. While the details are similar to ‘lump sum’ plans, there’s an important difference.
Lifetime mortgages are unlike standard mortgages – simply because they are only offered to people of a more senior age. The older the youngest applicant is, a larger sum or better interest rate can generally be offered. In a similar manner, ill health or a reduced life expectancy can sometimes mean that a greater lump sum amount or a more preferential interest rate can be offered by lenders.
The ‘enhanced’ element usually comes in the form of a detailed discussion about health and lifestyle. Where there is evidence of poor health, an enhanced product might be more beneficial compared to a standard plan.
Benefits of an Enhanced Lifetime Plan
For some people, the financial benefits of a lump sum lifetime mortgage might not meet the goal they were hoping to achieve. If this is the case, it may very well be worth looking at ‘enhancing’ the plan.
Enhancement can provide either a larger lump sum – or possibly a lower interest rate – both of which can be discussed and considered next to your financial plans when you talk to one of our expert advisors.
Even though some of the intricacies of an enhanced lifetime mortgage differ from more standard lump sum plans, some fundamental benefits still very much apply – including your right to retain ownership and occupancy of your home for the rest of your life.
What’s more, you can be absolutely certain that your family or other beneficiaries of your will and estate will not be left with the burden of debt as a result of your equity release plan. Any lifetime mortgage is repaid from the sale proceeds of the house only – and never extends into the wider estate. If there is any shortfall, this is a problem that is handled by the lender – and is not a problem that would see any impact on inheritance beneficiaries.