Local Life - Wigan - April 2019
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64<br />
Advertisement<br />
Monthly Income<br />
<strong>Life</strong>time Mortgages<br />
Have Arrived<br />
What is it?<br />
An Income <strong>Life</strong>time Mortgage allows you to release<br />
the money tied up in your property to provide<br />
you with a regular monthly income. It provides an<br />
alternative to lump sum and drawdown products<br />
for people who require the discipline of a regular<br />
income.<br />
The product allows you to take an initial loan<br />
amount, followed by a monthly income over a fixed<br />
income term of 10, 15, 20 or 25 years.<br />
The interest rate will be fixed and agreed at the<br />
outset for the life of the mortgage. This means it<br />
won’t change if rates go up or down during that<br />
period.<br />
If your circumstances change, you can choose<br />
to stop taking the income at any time, but once<br />
stopped, the regular monthly income cannot be<br />
restarted. Once the fixed income term comes to<br />
an end the monthly income will stop and interest<br />
will continue to roll up until the lifetime mortgage<br />
is repaid.<br />
Who is it for?<br />
Income <strong>Life</strong>time Mortgages are designed for<br />
people who:<br />
• Have a need for a fixed monthly income.<br />
• Require the discipline of having this paid to them<br />
automatically each month.<br />
• Require the certainty of a regular monthly<br />
income in line with their lifelong routine.<br />
It is not suitable for people who:<br />
• Have savings or investments that can use instead.<br />
• Require a guaranteed income for life.<br />
• Require a lump sum greater than 10% of the total<br />
facility available to them.<br />
• Have enough long-term income.<br />
• Claim benefits that may be affected by taking a<br />
lifetime mortgage.<br />
The minimum monthly income is £200 and<br />
minimum initial loan amount is £2,500.<br />
Your property must be worth over £100,000 or<br />
£150,000 for ex-local authority properties.<br />
Interest rates currently start at 4.24%.<br />
Please contact David Griffin on 01942 597182 for further details.