Ask ERIC Equity Release Interest-Payment Lifetime Mortgages

Key Advantages of an enhanced lifetime mortgage

  • If you have a history of poor health, you will receive the benefits of a standard lifetime mortgage along with a larger payment or a lower interest rate.
  • Eligibility is determined by a straightforward questionnaire and you won’t need to undergo a medical. Smokers may require a test, and information from your GP may be obtained.
  • A ‘no negative equity guarantee’ means that you are protected, even if you take the maximum enhancement.
  • Those with poorer health will receive a larger payment.

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The Risks

  • Interest rates can be higher than those on standard lifetime mortgage schemes if enhancing the sum.
  • In some cases, a doctor’s report is required, which could mean that the application process takes longer.
  • Your means-tested benefits could be reduced, or you may no longer be entitled to them.

Safeguarding your future

With all lifetime mortgage plans, you will always retain 100% ownership of your home. And the ‘negative equity guarantee’ means that even if the value of your property decreases, you will never owe more than you borrowed or pass debt on to your family.

How an enhanced lifetime mortgage works

For those with poor health, an enhanced lifetime mortgage gives peace of mind about your future financial security. Some people use this option to pay for home modifications for mobility-related health issues, which can make life much easier.

To find out if you qualify for this type of lifetime mortgage, you will be asked to fill in a questionnaire that covers different aspects of your health and wellbeing, such as:

  • Whether you smoke
  • If you have high blood pressure
  • If you have any medical conditions such as heart disease or diabetes

The amount of equity released for all lifetime mortgages is based on the age of the youngest applicant and the value of the property. A further calculation based on the results of the questionnaire will determine whether an enhanced lifetime mortgage
will be offered and how much it will be.

Enhanced lifetime mortgages allow you to release the maximum equity from your property and may also lower the interest rate. You have the option to receive your payment as a lump sum or draw it down in stages. Each lender will have their own terms and offer different interest rates.

How we help

It is a regulatory requirement that you take advice from a qualified equity release advisor for a lifetime mortgage.

At AskERIC, we understand that the process can feel overwhelming. That’s why you will be appointed a personal advisor who will remain with you throughout the process. Unbiased and professional, they will make sure that you understand all the facts and will help you decide if equity release is right for your personal circumstances. They will help you work with a lender to build an equity release plan that is tailored to your needs. We encourage you to involve family members and welcome them to come along to meetings.

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One of our advisors would be happy to have a friendly, no-obligation chat to answer any questions you might have.

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