Lump Sum Plan

A lump sum mortgage product is perhaps the simplest, and most straightforward equity release scheme currently available. If you are a homeowner aged over 55 and are looking for a simple lump sum equity release during your retirement, a lump sum mortgage may be the perfect fit for you.

To start the process of attaining a lump sum mortgage, you should know how much money you need to suit your needs. This will help determine how much equity needs to be released from your property to give you the cash payment you want. In essence, a lump sum mortgage allows you to take out a secured loan against your property that allows you to receive a tax-free lump sum payment. Your lender will charge you a fixed interest rate on the amount borrowed over the lifetime of the loan. With these products, there is typically no requirement that you make any repayments. However, there may be options available to you to make repayments if you so choose. If no payments are made, the interest is compounded and the full balance is due to be repaid when the home is finally sold, which typically takes place when the final homeowner has either passed away or moved into long-term care.

A lump sum plan is usually best suited for the homeowner who is not looking for a variety of features and wants a straightforward, simple scheme to be used in their retirement planning. These simple plans often offer a better interest rate since there are no other features or facilities.

To determine how much may be available to you, the lender will use the age of the youngest homeowner and the property valuation. In short, if you are an older homeowner, you are likely eligible to receive a higher cash payment. If you are younger, your payment may be lower. Your lender will determine how much you can borrow but there may also be options in the future for additional borrowing, if you qualify at that time. The process for qualifying for additional borrowing will include an equity release calculation to determine if extra funds are available to you.

We are available to assist you in determining if a lump sum mortgage is the best option for you and can help you find a product that best suits your individual retirement needs. Alternatively, you can do your own research without the need of an equity release adviser, with our free smartER research tool.

Calculate how much equity you can release with a lump sum mortgage

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