Lifetime mortgages allow the person to take out a borrowing against
their home on an interest only basis and unlike conventional mortgage structures no actual monthly payments are necessary. The loan
is usually repaid when the house is sold or if you die.
These types of mortgage options are generally aimed at and used by older people. Generally, in order to qualify for such a product a minimum age limit will be made. This will vary from provider to provider but expect it to be age 55 years old and above.
There are 3 main types of lifetime mortgages available these are as follows:
- Home Income Plans (HIP)
- Roll-Up Mortgages, and
- Drawdown Mortgages