Can I buy a new property with a Lifetime Mortgage ?
Posted on 26th March 2020 at 12:21
Up to now we’ve covered the confusion of the Equity Release name (Later Life Lending or LLL), what the money can be used for, how the mortgage works, ways to limit the amount owed, whether you can move house and if a Lifetime mortgage can be repaid early.
This time we will cover the subject of buying a new home with a Lifetime Mortgage.
So, you’ve decided that you wish to move house but either cannot meet the lenders affordability criteria for a traditional mortgage or wish to retain some money from the sale of the current house for other personal uses and are wondering how you can afford to move.
The reasons for a new home can be endless, perhaps wishing to retire in the countryside, near the coast , wanting to be nearer family members or maybe the need to have accommodation that is all on one level (i.e. Bungalow).
As long as the new property isn’t some form of retirement home or sheltered accommodation, there should be a lender out there who will consider an application. The reason for this is because they have a restricted market when the time comes for the property to be sold and the Mortgage repaid.
Again, as in previous blog posts , what you can borrow will depend on the age of the youngest applicant and the value of the property.
There may be further restrictions of the amount you can borrow if the property is a flat, but a qualified advisor can help you navigate the market
If any of this is of interest to you and you’d like a no obligation informal conversation with a qualified advisor, please get in touch on 07788 219647 or email firstname.lastname@example.org
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Next time, we’ll look at some scenarios where we’ve helped people.
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