Reverse mortgages, known as lifetime mortgages in the UK, allow homeowners over 55 to borrow against their home without making monthly repayments. The loan is repaid when the homeowner dies or enters long-term care through property sale. This financial tool may provide tax-free cash while allowing homeowners to remain in their homes. However, long-term implications, risks, and regulatory oversight by the Financial Conduct Authority and Equity Release Council should be carefully understood before leveraging home equity.
A reverse mortgage, or lifetime mortgage, allows homeowners aged 55 and over to borrow against their home's equity, requiring no monthly repayments.
The loan is repaid upon the homeowner's death or move into long-term care, usually through the sale of the property.
Lifetime mortgages are regulated by the Financial Conduct Authority and typically offered by Equity Release Council members, ensuring consumer protections.
It is essential for homeowners to understand the long-term implications and risks associated with reverse mortgages before making financial decisions.
Collection
[
|
...
]