Can I use a lifetime mortgage to reduce my Inheritance Tax liability?

Yes. Arranging a lifetime mortgage may have an impact on the amount of inheritance tax your estate will have to pay. This is however a complex area and depends on the value of your estate, your situation as well as your personal circumstances. Please talk to us about your needs. Impartial information on inheritance tax can also be found on the Money Helper website.

Can I move home?

Yes – a lifetime mortgage gives you the right to move to a suitable alternative property. There are some properties which may have restrictions based on the ability to sell the property on the open market when your plan comes to an end. Your financial adviser will be able to explain this in further detail.

Will I need to change my will?

We would recommend that you review your will when taking out a lifetime mortgage. You don’t normally have to alter your will but it will depend how it’s written.

Will a lifetime mortgage affect my benefits?

Any money released from a lifetime mortgage could affect means-tested benefits such as Pension Credit and Council Tax Credit. Your state pension is not affected and neither are any benefits based on disability or health. It’s important that you discuss any implications with your financial adviser.

How do I know if my adviser is qualified or not?

All of our lifetime mortgage advisers are fully qualified to provide lifetime mortgage advice and hold the Certificate in Regulated Equity Release (or equivalent) qualification. Paul our advisor holds the CeRER, CeMAP

Why do I need to get professional advice?

More and more people are now considering a lifetime mortgage as part of their financial planning for retirement. However, you must ensure that you are happy with how the lifetime mortgage works and the terms and conditions associated with it. You need to understand it will impact any inheritance that you leave to your beneficiaries and may impact your rights to state benefits. Because of this, it is a regulatory requirement to speak to a financial adviser before taking out a lifetime mortgage. A financial adviser will be able to listen to your needs and research your options amongst a wide range of mortgage providers.

What is the Equity Release Council?

The Equity Release Council (ERC) is an organisation that was created to promote and support providers offering equity release products. The council is committed to ensuring that consumers are safeguarded and providers offer products that meet the Equity Release Councils rules and principles.

Can I repay the lifetime mortgage early?

This depends on the lifetime mortgage product you decide on. With lifetime mortgages you can usually repay the amount in full but you may incur an early repayment charge. This will depend on the specific scheme, how long you’ve held the mortgage for and the reason for repayment. If the option of early repayment is important to you, your adviser can discuss this with you and take it into consideration when making a recommendation to you.

Will my family end up in debt because of equity release?

No, all equity release schemes offer a no negative equity guarantee meaning that when you finally repay the debt (when you or the last person dies or goes into long-term care) the amount to be repaid will never be more than the value of your home (provided the T