Protect part of the value of your home.
With a Lifetime Mortgage the interest due on the loan is rolled up into the loan each month increasing the amount that is owed when the loan is repaid. This will decrease the amount you can leave as an inheritance to your estate, family or loved ones. This problem can be solved with inheritance protection.
if leaving an inheritance is important to you there are some plans that allow you to protect a certain percentage of the value of your home for inheritance purposes, this is known as ‘inheritance protection’.
If you decide to include inheritance protection on your plan it is important that this is selected before you complete the application and you should therefore make us aware of this at the earliest possible time.
Selecting inheritance protection will reduce the maximum loan amount you can take and in some cases increase the interest rate slightly.
Whatever percentage of your home you decide to protect will continue to benefit from house price increases and should house prices decrease, the amount protected will also decrease in value. it is important to remember you are protecting a percentage of the value of your home, not a monetary amount. if your home is valued at £200,000 and you want to protect £50,000, you are protecting 25% of the property value. if in 10 years time your home is worth £300,000 the amount protected will increase to £75,000.
Inheritance protection is different from the No Negative Equity Guarantee, but the amount protected is still covered by the No Negative Equity Guarantee
Use our simple ‘inheritance calculator’ below to find out how much you could protect and how this will affect the amount you can release.