Income Lifetime Mortgage

Are You Considering Unlocking Funds With an Income Lifetime Mortgage?
Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui
Are You Considering an Income Lifetime Mortgage? Find Out Exactly What It Is & How Much You Qualify For. Read This So You Don’t Get Caught.

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Are you considering an income lifetime mortgage as a way to get some extra cash? We’re telling you everything you need to know about the income lifetime mortgage so that you can determine if this is the right loan for you.

Are you wrecking your brain trying to develop new ways to get some extra income?

Are you retired but you’re uncertain about the amount of your pension pot? Did you save up enough to last you the rest of your life?

Let me tell you something.

As experts in our field, we discuss the following in this article:

    You don’t need to worry anymore. There’s a great loan option, and it’s the income lifetime mortgage.

    This mortgage can give you that boost in income that you need for your retirement life. It can also help to fund renovations or a nice gift for your child.

    Some people also use this extra money for a lovely and much-needed vacation.

    The options are endless! Some reasons are a bit more serious, like buying out your ex during your divorce or paying off debt that’s been haunting you for years.


    The income lifetime mortgage is typically a lifetime mortgage plan that allows homeowners aged 55 to receive a monthly income from the capital tied up in their estates.

    Unlike most equity release mortgages, the income lifetime mortgage enables you to borrow lump sums of cash.

    You might be asking yourself:

    What’s a Lump Sum?

    A lump sum is a form of payment. It’s a large sum of money paid as a single instalment, rather than repaying in smaller amounts more regularly.

    When it comes to loan vocabulary, people also refer to it as a bullet repayment. Equity release plans1, for example, can be repaid as a lump sum when you pass away, or in monthly instalments.


    The monthly-income mortgage plans allow you to withdraw a fixed income from your property’s market value over different times.

    You can either decide on the tax-free money over 10, 15, 20 or even 25 years.

    Best of all:

    An income lifetime mortgage is the best option for you if you only need a little bit of extra cash.

    A monthly income mortgage plan is a very secure way to loan money and receive a little extra income every month.

    But you might be asking yourself:

    How do I know how much I’ll get monthly from my income mortgage plan.

    Well, you can simply use the monthly income calculator. Here’s a helpful guide on how it works:

    • Input the value of your property (not the amount you paid for it, but the amount it was evaluated for)
    • Input your age
    • Input your phone number and your email address
    • You’ll receive an email with the amount you’ll be accepting per month according to the information you provided the calculator

    It’s as simple as that! Now, after you’ve seen the estimated amount you can get per month, you might be seriously considering taking out an income lifetime mortgage.

    But you’re still wondering if it’s a safe option for you.

    But, is this the best lifetime mortgage for you? Let’s just mention again…

    As its name states, this type of mortgage works by paying you a monthly pension top-up, if you will. It pays out a set amount monthly.

    Better yet:

    It’s a great way of supplementing your retirement salary so that you can maintain the same quality lifestyle after retiring.

    It’s the best alternative if you don’t need a big sum of money. If that were the case, instead go with a lump sum lifetime mortgage.

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    The 8 Different Types of Lifetime Mortgages Available to You

    But if you want to know about some other options, there are eight different types of lifetime mortgages you can choose from:

    1. Enhanced
    2. Drawdown
    3. Lump-sum
    4. Interest-only
    5. Voluntary repayment
    6. Buy-to-let
    7. Retirement
    8. Retirement interest-only

    But, when it comes to boosting your monthly income, the income mortgage is the best option for you.

    However, it’s always advisable to discuss all your options with a professional financial adviser so that you’re sure about your decision.

    Are you wondering if it’s a safe mortgage due to the past lousy reputation? Read on…

    How Safe Is An Income Mortgage?

    Well, thanks to the ERC, you’re very safe. You’re guaranteed the right to stay in your home as long as you wish.

    You can stay in your home your whole life if you want to do so. Another option is to move houses and transfer the equity release plan without paying a fine (thanks to their downsizing protection policy).

    Best of all:

    They guarantee your residency with both kinds of equity release plans: lifetime mortgage and home reversion plans.


    The council also offers a No Negative Equity Guarantee, which is excellent! Why?

    This guarantee ensures that the mortgage amount plus accumulated interest will never be more than the value of your property.

    In other words, the homeowner is protected when the property market takes a turn for the worst.

    Let me tell you something…

    The homeowner is also protected if his/her house depreciates or when his/her mortgage is more than what the property would sell for when the time comes to repay the loan.

    But wait.

    The FCA2 is also there to protect you. Their job is to ensure your provider and advisor follow the rules to the T.

    So, you don’t have to worry. You’re in good hands when it comes to Equity Release.

    The Equity Release Council Protect You From…

    The Equity Release Council is there to help you see and avoid these equity release providers:

    • Plan providers who don’t have a ‘no negative equity guarantee.
    • Lenders who aren’t members of the ERC.
    • Providers who charge high interest rates.
    • Lenders who charge you very high repayments and who charge them early.
    • Equity release firms that give you large loan amounts before they even analyse your circumstances.

    Common Questions

    What's an Income Lifetime Mortgage?

    How Much Do I Qualify For with an Income Mortgage?

    How Do I See How Much Income The Mortgage Plan Will Provide?

    How Safe The Income?

    In Conclusion

    We understand the dire need to work out new ways in making money and that’s why we want to help you.

    It’s relatively easy to determine what amount you can get when you take out an enhanced mortgage through an equity release provider.

    It’s just a matter of putting in a few details and the process streamlines itself and the provider is with you every step of the way.

    It’s an empowering option if you need to borrow some extra or much-needed cash and you have an illness or impairment.

    If you’re still considering whether or not income lifetime mortgages are for you, feel free to contact us with any further questions and we will gladly assist.

    How Much Can You Release?

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    Editorial Note: This content has been independently collected by the EveryInvestor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.