Flexible Lifetime Mortgages - Make The Most Of Your Retirement

Flexible lifetime mortgages are essentially a lump sum, taken from the equity in your home and spent how and when you like. It can be anything from 1% to 99% of your home's worth, with interest paid until you sell your home. The money can be taken as a whole, or can be set up much like a pension, with monthly payments out from the equity. And because it's your money that you worked so hard for, you can use it to do anything you wish - renovations, holidays or just treating yourself now and again. You decide how much you unlock, you decide how long you have the loan for and you decide what form the loan is in - that's why they are flexible lifetime mortgages, because you are in charge.

But being flexible lifetime mortgages, they are a big decision. A large loan will take with it much of your built-up equity, which you may have planned as an inheritance for your children. A lifetime deal means regular payments each month - and maybe after years of mortgage repayments, this will be the last thing you need. Also, taking out flexible lifetime mortgages means moving home may become difficult in the future. So think carefully because flexible lifetime mortgages will affect how you make financial decisions for the rest of your life.

Even with these difficult decisions in mind, flexible lifetime mortgages, also known as equity release products, are as secure as any loan that you may have taken out in the past. They are regulated by the Financial Services Authority and have made the retirements of many homeowners across the UK that bit more comfortable. And because they are flexible, you can get flexible lifetime mortgages in many forms such as fixed rate deals and trackers.

The most important part of the flexible lifetime mortgages decision-making process is advice. Because this is a lifetime deal you have to think hard - talk to a financial adviser and ask them whether your situation is right for flexible lifetime mortgages. Your retirement is meant to leave you with peace of mind, and you can have that with these loans, but only if they are done right - which means careful planning. Talk to your family and talk to an adviser to see whether unlocking some of your home's equity will help you do all the things you ever wanted to do.

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© 2007 - 2010 Offset Mortgage Centre | Terms and Conditions | Privacy Statement | Your home may be repossessed if you do not keep up repayments on your mortgage. *Source Barclays Bank: Calculation based on an offset tracker product; repayment mortgage of £100,000 over a 25-year term that has been offset with £20,000 savings, resulting in a reduction in mortgage term of 8 years and 8 months or a saving of £44,867 in overall interest. Calculation assumes balance remains constant throughout the life of the mortgage and that the mortgage loan and savings balance will vary. Outcomes will be either a reduction in payments or a reduction in mortgage term. No interest is paid on balances offset against the mortgage. Typical rate is 6.45% (variable). The overall cost for comparison is 6.7% APR.