Learn to be a Financial Hunter - Not the Hunted
You Are Here: Home > Personal Finance > Equity Release > FAQs > Question
Equity Release: What is a

Fixed Repayment Lifetime Mortgage

It is a loan taken out which in turn is secured against the value of your property. A tax free cash lump sum is then paid.

However, instead of paying interest on the loan, as with most Lifetime mortgages, you agree with the lender to pay a higher sum when the property is sold. This sum is also fixed, ie it cannot rise over time.

When the property is sold the lender must repay the loan and the remainder is their profit.

Obviously if you live a long time this style of Equity Release deal will be more advantageous to you, and better for the lender if you die within a few years signing the paperwork.

How much higher the higher sum will be depends on your age and life expectancy (if you have certified medical problems this should mean a lower price).

Overall these deals look highly subjective and personally I wouldn't recommend them. See Secret 3 - Buy simple and flexible - you can't read the future - which is one of this site's 10 Secrets to Good Personal Finance

See also

FREE Equity Release Guide

  • This LearnMoney guide offers a simple 5 Step process outlining exactly how to properly research the Equity Release market

  • It make sure you ask the right questions and get proper answers

  • Concentrates on the all-important costs and flexibility of the different Equity Release schemes

  • More details and to download your FREE copy

[an error occurred while processing this directive]

© 2019 LearnMoney.co.uk All rights reserved

The information on the LearnMoney.co.uk website has been compiled from sources believed to be reliable, but is not warranted to be accurate or complete.
All recommendations and comments are provided for general interest only and should not be construed as advice.
Professional advice should always be sought before buying or investing in any financial product.
The price of securities and any income from them can go down as well as up.
Past performance of a security or market is not necessarily indicative of future trends.
Any opinions and recommendations on LearnMoney.co.uk are given in good faith, but without legal responsibility and are subject to change without notice