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Mortgage glossary

Lifetime mortgages

Lifetime mortgages are a way for older homeowners to access some of the value of their home without having to make repayments or move house.

With a lifetime mortgage homeowners are effectively borrowing against the value of their home - with the interest payments deferred until they die or move into care and their home is sold.

This means the homeowner can remain in their property without having to make any payments.

The money released can be taken in a lump sum, or used to buy an annuity, which would provide an income for life.

Experts recommend that someone thinking about raising capital this way should consult with relatives and financial advisors before going ahead with the plan.


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