Lifetime Mortgages
A lifetime mortgage is a loan for older people. It usually requires no repayment until the person dies (or their surviving spouse dies), or if the property is sold.
This type of mortgage does not require you to give up ownership of part of your house. However, the roll-up on the interest owed can be quite onerous.
Home Reversion Plans
A Home Reversion scheme allows you to sell part or all of your property to a provider in return for either a lump sum or income and a lifetime right to remain living in your property. This means you lose the ownership of your home although you keep the responsibility for its upkeep.
Although you can choose to sell any fraction of your home, you will only receive a part of the value that you sell at – often as low as a quarter of the current market value if you are aged 65.
