Compare Mortgages On An Interest Only Lifetime Basis
September 25th, 2013Interest only lifetime mortgages have become one of the most popular financial options for the retirement sector since they were first introduced a few years ago. They offer a flexible and innovative way for over 55’s to obtain a potentially lifelong mortgage, and use some of the equity tied up in their property while also retaining full ownership of the property. Like any other financial product, it is important to compare interest only lifetime mortgages and choose the most suitable option for your needs.
Interest only lifetime mortgages are unique in that they offer control over repayment of the interest. By making monthly interest payments either in part or full, you can potentially keep the balance on the loan level for the entire term of the mortgage. By making interest payments you can know exactly how much you will owe the lender, and how much equity will be left behind for your beneficiaries.
As opposed to home reversion schemes an interest only mortgage does not involve losing ownership of the property, which is an important advantage as many people are uncomfortable with the idea of losing legal ownership of their home. Interest only lifetime mortgages are also flexible in that they can be switched to a roll up mortgage at any time if making monthly payments becomes unaffordable for any reason.
It is important to note that interest only lifetime mortgages are a lifelong commitment and have significant consequences for your future. They impact not only on you but also your beneficiaries. As such, it is important to shop around for the most suitable mortgage and to do this it is necessary to compare interest only lifetime mortgages available from different providers on the open market.
The first step to compare interest only lifetime mortgages is to visit an independent comparison site that lists all the products currently available. Independent financial advisers (IFAs) are often the most reliable source of objective information and financial guidance.
What may suit someone may not be suitable for someone else. Different providers have different terms of lending, as well as different options and additional features. The only way to find the most suitable option is to compare interest only lifetime mortgages. IFAs that specialise in these equity release products can provide advice based on your individual circumstances and needs. Another important reason to seek advice from an IFA is that independent advisers often have access to better deals and attractive incentives that are not otherwise available.
