What is a lifetime mortage

This is a golden age for people in a retirement full of golden opportunities.

Falls in the equity markets earlier this decade have left many retirees with lower savings and income levels than they were expecting
The general costs associated with living in Spain have been continuously rising. At the same time people have seen the value of their Spanish property increase substantially. These people are “property rich” but “cash poor”
We’re not just living longer these days, We’re fitter, healthier and more active, We’re more outgoing, more adventurous and more and more of us want to live life to the full when we are in our 60’s, 70’s, 80’s & 90’s.Lifetime Mortgages can help you to make the most of this special time in your life.


Having worked hard all our lives, most of us dream of enjoying a happy and relaxed retirement. But nowadays, being retired can be a costly business.

Pensions and savings are not stretching as far as they used to and you may be worried that they are not giving you the comfortable lifestyle that you have come to expect, Couple this with the fact that many of us are living longer, and retired people are increasingly finding that they need an extra source of cash to help pay bills and maintain the Spanish way of life they are accustomed to.
While selling and downsizing to a cheaper property is one option, it would be a major upheaval to leave the home you love and go through the stress and costs of a move.


So today most people’s greatest asset is their home and it makes sense to capitalise on this wealth by releasing some equity from their Spanish property.

WHAT IS A LIFETIME MORTGAGE?
“A responsible, competitively priced mortgage facility from a prestigious UK Building Society
Available to UK Nationals who are Spanish residential property owners”

HOW DO THEY WORK?

A Lifetime mortgage is a special type of loan which is designed to run for the rest of a client’s life. It is a way for them to release equity from their Spanish property by enabling them to borrow money to provide a lump sum and/or to release further sums in the future.
This money does not have to be repaid during the life of the mortgage.
Clients make no monthly payments. Instead, the interest accumulates and is added to the mortgage balance each month.
“No Negative Equity Guarantee”


The loan is secured on the property and the amount owed, the initial loan and interest, is only paid back from the sale of the property, after the death of the owners, or if they move into long-term care.
The Lender offers a “No Negative Equity Guarantee” with this mortgage. Whatever might happen in the future with regard to the stock market, interest rates or property prices, there is no risk whatsoever of a client’s estate being left with an outstanding mortgage debt after the property is eventually sold. In the highly unlikely event of the property being sold for less than the value of the loan and the interest owed, the Lender guarantees to make up the difference. If the property is sold for more than the outstanding mortgage balance, then the clients’ beneficiaries will receive the difference.

This “No Negative Equity Guarantee” is a very important safeguard for prospective clients, their families and any future beneficiaries.

The agent for this area is Neill Carden from Home Loans Spain and you can contact him for all details and a home visit consultation on
952 501 128 or 645 522 748

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