The lender does not carry out an affordability check for
Equity Release plans with no required committed payments.
✅Unlike traditional mortgages which include an affordability check to ensure that regular committed monthly payments can be made, the flexibility of many Equity Release Lifetime Mortgage plans allows clients to make ad-hoc voluntary payments or even no payments.
✅Interest is added to the loan, either monthly or annually, depending on the lender. There are plans available which do not require clients to make any payments. If they don’t make any payments, interest is added to the loan each month or year, causing the debt to grow over time with compound interest.
✅But here's the important thing: The client has control over the debt. With a flexible Lifetime Mortgage, the client can decide if it grows with no payments or choose to pay some or all the interest each year. They even have the option to pay off some of the capital to reduce the debt, subject to certain limits. Early repayment charges may apply above a set value
💡For more information use the Contact Me section at the bottom of this page, to send me a message to book in a chat. Or call me on 07887885182.
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