- Remove tax-free equity from your home with a Metrobank Lifetime Mortgage
- No early repayment charges
- 5.03% Fixed for life
- No arrangement fees
- You don’t need to make regular monthly payments unless you want to pay interest only.
- Help a family member buy their own home with a modest mortgage
- Still, have a few more mortgage payments to make? No problems
- Continue to stay in your house
How much can I release?
You can get 70% of the valuation of your home. For example, if your home is worth £220,000, you can release £154,000.
Mr Shaw from Bradford
I thought I would have to sell my home to repay my mortgage, as the bank wanted their money back. With the money left, I could only afford a flat, and I would have been further away from my daughter and her children. Downsizing was a bad idea for me.
My lifetime mortgage was ideal for me as I had no monthly repayments, and I paid off my old mortgage. I saved the cost of moving to a new flat where I would pay to move to a place I did not want.
The no negative equity guarantee and equity release council assurances were very important to me. I am better off each month and have some tax-free cash ready if repairs to the house are necessary.
Mr Howarth from Leeds
I am healthy and have a good income from my pensions for later life. I decided to release money from my unencumbered home with a retirement interest-only mortgage (RIO mortgage) so I could get a new kitchen and bathroom and give money to my children so they could move house and buy bigger homes.
I had no problems with a minimum or maximum age requirement or affordability. The interest rate was very low, like a prime conventional mortgage from a bank or building society.
The monthly payment was tiny compared with the rest of my outgoings. The whole process was authorised and regulated by the finance conduct authority.
Mrs Yardly from Sheffield
I had an old, tired car and an unreliable central heating system. Repair bills continually mounted, meaning I had less money on holidays and other nice things.
A friend said I should consider equity release, but I was put off by the horror stories of the roll-up/compounded interest destroying people’s homes.
When I did my homework, I found that in 2024, equity release interest rates were very low, and the negative press was around people who had been ripped off with high rates.
Even if my house price only increased slightly, the roll-up interest would be covered. The equity release enabled me to get a nice 3-year-old car and a new boiler, so I was not wasting money all the time on repairs!
William from Birmingham
My son knew a guy who owned six pubs. Because of successive lockdowns due to covid 19 coronavirus, he had to do a quick sale on his holiday home in Cornwall.
My equity release money bought his flat at 35% under market value. Not only does my family have the shared use of a holiday home, but the rental income is also much more than the interest on the equity release.
Mrs Heart from Aberdeen
I was struggling to pay my mortgage and had no money left for emergencies at the end of the month, let alone saving for a holiday. I had investigated home reversion plans, but they did not appear to be the right solution.
Equity Release for older borrowers with no monthly repayments was exactly what I wanted, and the interest rate was very low. I was able to pay off my mortgage. I live in an area where house prices are going up nicely, so keeping 100% ownership of my own home is wise.
I am confident that my house price appreciation will be much bigger than my roll-up interest.
Does Metrobank offer Pensioner Mortgages?
Yes, Metrobank Pensioner Mortgages are 1.96% MER.
It’s usual to find individuals searching for home reversion plans or lifetime mortgages with flexible drawdown cash release; however, Legal and General, like AIG Life, are keen to see evidence of your circumstances in the form of investment statements.
Does Metrobank offer Equity Release?
Yes, Metrobank Equity Release is 2.13% APRC.
Equity Release Loan To Value
The more elderly you are and the more serious your illnesses are, the more cash you can release
UK Equity Release Providers
- Key Retirement
- Age Partnership
Equity Release Loan To Value
- 55% monthly payment lifetime mortgage VitalityLife Equity Release
- 40% loan to value (LTV) monthly payment lifetime mortgage Stonehaven
- 30% LTV interest-only lifetime mortgages Prestige Finance
- 45% loan to value interest-only lifetime mortgages 1st Stop Home Loans
The 1st and 2nd charge lenders will want to know if the property is a Freehold terraced house or a Leasehold flat with a share of freehold and if the occupier is an Owner Occupier.
Does Metrobank do Retirement Mortgages?
Yes, Metrobank Retirement Mortgages are 1.92% APR.
Equity Release Scheme Lenders
It is often found to discover individuals searching for lump sum lifetime mortgages, lumpsum lifetime mortgages or home reversion plans. However, like Aegon, Bower is eager to see proof of your circumstances in the form of bank statements.
- More To Life Lifestyle Flexible Option
- Liverpool Victoria LV= Lump Sum Plus Lifetime Mortgage – Updated For January 2024
- More to Life Tailored Choice Plan
- HSBC Interest Only Lifetime Mortgage maximum age
- Bridgewater Equity Release
- More to Life Tailored Choice Plan
- Hodge Lifetime Mortgage Plus
- Saga Lifetime Mortgage
- Bridgewater Equity Release Plans
- L&G Legal & General Flexible Lifetime Mortgage
- More to Life Flexi Choice Drawdown Lite Plan
- Pure Retirement Equity Release Plans
- Lloyds Bank Equity Release
- NatWest Equity Release
- Royal Bank of Scotland Equity Release Schemes
- Bridgewater Lifetime Mortgage
- Pure Retirement Classic Drawdown Lite Plan – Updated For January 2024
- Stonehaven Interest Only Lifetime Mortgage
Metrobank Lifetime Mortgage
Which? Equity Release Scheme – Updated For January 2024
Yorkshire Bank Equity Release Scheme
YB-Yorkshire Bank Lifetime Mortgage
Which? Money Lifetime Mortgage
Legal & General Lifetime Mortgage
Does Metrobank do Equity Release Under 55?
Yes, Metrobank Equity Release Under 55 is 2.02% MER.
Disadvantages of Lifetime Mortgages
Interest-only lifetime mortgages can reduce the value of your estate. A monthly payment lifetime mortgage may impact the ability to get state benefits. You may need to pay a broker’s fee, and you could be exposed to changes in interest rates with some products.
Advantages of Home Reversion Schemes
Often used to optimise tax planning and interest rates on the money, it can be appealing. Low rate way of helping the family to buy their own home or pay down your debts, so you have lower monthly outgoings. Metro Bank does not offer home reversion schemes.
Does Metrobank do Lifetime Mortgages?
Yes, Metrobank does lifetime mortgages at 2.21% APRC. Metrobank Lifetime Mortgages have a loan-to-value (ltv) of 70%.
Demystifying Equity Release, Lifetime Mortgages, and Retirement Interest Only Mortgages in the UK
As life expectancy increases and the nature of retirement evolves, many homeowners in the UK are turning to diverse financial solutions to secure a more comfortable and financially stable post-retirement life. Among these solutions, equity release, lifetime mortgages, and Retirement Interest Only (RIO) mortgages stand out as prominent options. This in-depth exploration aims to clarify these subjects for those considering utilising equity in their homes.
What is Equity Release?
Equity release refers to various financial products that enable homeowners, usually those over the age of 55, to access the capital tied up in their homes without needing to move. These funds can be received as a lump sum, a steady income, or a combination, depending on the specific product chosen and the homeowner’s preferences.
Two primary forms of equity release dominate the UK market:
- Lifetime Mortgages: This is essentially a long-term loan secured against a property. The homeowner retains ownership of the property and can either choose to make interest payments or let the interest compound over time. The loan amount, along with accumulated interest, is repaid upon the homeowner’s death or when they enter long-term care.
- Home Reversion Plans: Here, a homeowner opts to sell a part or their entire property to a reversion provider in exchange for a lump sum or regular payments. Although the property’s ownership might change hands, the original homeowner can continue residing in the house, typically rent-free, until they pass away or move into care. Upon the eventual sale of the property, the proceeds are divided based on the previously agreed-upon proportions.
Retirement Interest Only (RIO) Mortgages
Unlike standard interest-only mortgages, RIO mortgages cater specifically to older borrowers. Under a RIO, monthly repayments are made, covering only the interest amount. The principal remains unchanged and is only repaid once the borrower dies or shifts into long-term care. Lenders offering RIOs conduct stringent affordability checks to ensure the borrower can manage the monthly interest payments, thus safeguarding the financial well-being of their older clientele.
Over 70 Mortgages
With the age shift in the UK’s demographic, many lenders now offer products tailored for those aged over 70, factoring in the unique financial circumstances and necessities of pensioners. For individuals curious about these specific products, details can be unearthed at nationwide mortgages for over 60s.
Retirement Interest Only Mortgage Rates 20244
Interest rates, always a critical factor in any mortgage decision, are ever-evolving. In 20244, specific rates and deals are tied to RIO mortgages that potential borrowers should be aware of. Current insights on the best deals in the market can be accessed at the best retirement interest only mortgage rates.
Equity Release Nationwide
Nationwide Building Society is a major figure in the UK’s equity release landscape. They provide many tools and products tailored for older homeowners, one of which is their equity release calculator, which gives potential borrowers an estimate of the equity they might access. More on their equity release offerings is available at the equity release calculator nationwide.
Natwest Retirement Interest Only Mortgage
Another key player in the financial world, Natwest, offers its range of RIO mortgages. They’ve crafted their products with the nuances and requirements of retirees in mind. For a comprehensive view of Natwest’s RIO mortgages, interested homeowners can visit Natwest lifetime mortgage.
Halifax Retirement Mortgage
With its extensive range of financial products, Halifax has options specifically designed for retirees, including their retirement mortgages. These products cater to both the equity release and RIO mortgage market segments. To delve deeper into what Halifax has on its roster, you can check Halifax retirement mortgage.
Lifetime Mortgage Interest Rates
Interest rates play a pivotal role in any long-term financial decision. Lifetime mortgages, given their extended nature, are no exception. There are specific rates associated with these mortgage types that potential borrowers must be apprised of. For a detailed look at the current rates and more, one can visit lifetime mortgage rates uk.
Navigating Your Financial Future
The journey towards deciding on equity release, lifetime mortgages, or RIO mortgages is not straightforward. Such decisions can significantly impact your financial health, retirement life quality, and even the inheritance you might wish to leave behind.
Engaging in thorough research, seeking guidance from qualified financial advisors, and staying abreast of market trends and regulatory changes is imperative. Each homeowner’s situation is unique, and a tailored approach ensures that the chosen path aligns seamlessly with individual retirement goals and financial landscapes.
The UK’s financial market, with its dynamic nature, is always evolving. Lenders continuously innovate, and regulatory bodies are on their toes, updating guidelines to preserve consumers’ best interests. By staying informed and periodically revisiting any financial arrangements, homeowners can adapt to changing circumstances and perhaps discover better deals, confidently securing their retirement’s financial aspect.