MORTGAGE HELP DESK UK

Home Income Plans Mortgage Products - Help And Advice

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What is a Home Income Plan Mortgage? Is a Home Income Plan Mortgage Suitable for You? Can You Afford a Home Income Plan Mortgage? Elderly Mortgages Frequently Asked Questions

What is a Home Income Plan Mortgage?

The Home Income Plan Mortgages are made especially for customers over the age of 70 years, it is given either as a monthly income or as a cash lump sum. The Mortgage amount is then paid off when the home is sold, which is done either when you pass away or when you move into long term residential care. The interest that is charged is compound interest. Only a few lenders offer Home Income Plans to those below the age of 65 and only offer the plan to couples when the youngest is at least 65 years old. Every lender offers a different scheme and there are many different lenders who offer these schemes on the market.

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Is a Home Income Plan Mortgage Suitable for You?

If you have a property with equity value in it and require a lump sum or a monthly payment, one option to be considered is the Home Income plan. However before taking on any equity release product, it is advised that you take professional advice, consult your family and review all other options.

The amount that you can borrow on the Home Income Plan depends on your age and can be up to 60% of the value of your home. Factors such as your need for cash, the amount required, reason for the cash, alternatives , leaving a legacy are all important factors that need to be understood. The Lifetime mortgage has certain advantages these are they allow the borrower to retain ownership, the cash can be used as the borrower wishes, there are no monthly payments, the borrower is guaranteed a lifetime occupancy, and finally there may be some equity remaining in the property once it is sold.These advantages ned to be offset with the disadvantages these being that , the amount raised will be relatively low compared to the property value, the debt may roll up quickly when interest rates are high thus effecting any planned legacy, moving home may prove difficult, the incmwe may effect the client from state benefits

It is recommended that you consult other members of your family when taking out an equity release mortgage, especially those who are to be the potential beneficiaries of the home about your decision as it may affect the share that they will receive upon the sale of your home. This is because even if you took a lifetime Mortgage, on say just 25% of your home, depending on how long you live your beneficiaries could be left with little or no inheritance.

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Can You Afford a Home Income Plan Mortgage?

The main benefit of Home Income Plan Mortgage is that you do not need to pay anything back monthly, the interest is compound interest and thus it accumulates and is added to the amount that you have borrowed. Our Elderly customers are also reminded that the impact on taxation and benefits needs to be reviewed , any income generated through equity release may be taxed at the top part of the individuals income, Regarding benefits creating additional income can effect pension credits , saving credits , and council tax benefits , amongst other entitlements.It is advisable to speak to your benefits officer or the citizen advice bureau before embarching on a mortgage. As in some cases the loss in benefits could outway the additional income you are recieving.The cash amount that you have borrowed on the equity release plan can be paid back either before you pass away or it will be paid off after you pass away by the sale of the home. All Home Income Plan Mortgages schemes in the market guarantee that you will not go into negative equity, in other words you will never owe more than the total value of your home. The interest rates on Home Income Plan Mortgage are generally higher compared to other forms of Mortgages and often tie in higher redemption charges in the initial years of the Mortgage, there are always the other extra costs that are associated with taking out a Mortgage, and these include valuation charges and legal fees.

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What can the "Mortgage Help Desk UK" do for you?

At the "Mortgage Help Desk UK", Our staff are trained and dedicated, to do their best to find you the best possible Mortgage that would suit your circumstances.
Since the area of Equity Release is a very specialised area which requires a lot of indepth understanding of the clients situation, we have partnered ourself with FSA approved equity release partners , who have the experience of specialism in this area Depending on your circumstance they could help you find a Equity Release Mortgage deal at a very competitive interest rate.

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Equity Release Mortgages Frequently Asked Questions

What are Home Reversions?

Will the life time mortgage be in my name?

What are the alternatives to Life time mortgages?

Can I obtain Further Advances?

Are Equity Releases Regulated?

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Other Relevant Ancillary Products

For details regarding payment protection plans, household insurance , or life cover, contact us and we will be happy to introduce you to our partners who can help plan and arrange them.

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