What To Ask Your Lifetime Mortgage Adviser

Lifetime Mortgage Adviser

What To Ask Your Lifetime Mortgage Adviser

Taking out a Lifetime Mortgage is a big decision and so you need to make sure that this is the right form of equity release for you. Here are some questions that you should ask your Lifetime Mortgage adviser when discussing the scheme:

  • What would be the effects of the money you receive from the Lifetime Mortgage on your state benefits? If you receive state benefits that are means tested (excluding the basic state pension) then you might find that the money you receive makes you ineligible to claim them.
  • Does the scheme have a ‘No Negative Equity Guarantee’? If it doesn’t then you should find out why. A ‘No Negative Equity Guarantee’ was created by reputable equity release lenders to protect you and beneficiaries of your estate in the event that the value of your Lifetime Mortgage loan becomes than your home is worth. With a ‘No Negative Equity Guarantee’, there will be no liability to pay for the money that is owed.
  • What are the conditions specified in order for you to continue living in your home? One of the key advantages of a Lifetime Mortgage is that it enables you to continue living in your own home for as long as you wish. However, the provider of your home will lay down certain conditions pertaining to the maintenance and upkeep of your property. You should find out the extent of these conditions, and ensure that you will be financially capable of honouring them. You might be eligible for a grant from the government or a charity that will help you pay for any home repairs you need, and your adviser should be able to find out the relevant information for you.
  • Can you transfer the Lifetime Mortgage to another house if you move home? You might find that you wish to move to a different home in the future – perhaps a single-storey property or one with a smaller garden – and so you check that you are able to transfer your arrangement to the new house.
  • What fees are payable when you take out the Lifetime Mortgage? Your adviser should be able to provide you with a full break-down of the fees you will need to pay, and these might include: valuation charge, adviser’s fee, solicitor’s charges, etc.
  • What fees are payable if you soon after taking out the Lifetime Mortgage or within a few years? This is an important question to ask your Lifetime Mortgage adviser because there are likely to be charges which are added for early repayment.