Seniors Money

International

How a Lifetime Mortgage Works

'Lifetime mortgages' (sometimes called 'reverse mortgages') is a generic name for the type of Home Equity Release product offered by Seniors Money International. The key charactersitics of a lifetime mortgage are as follows:

  • It is a loan, secured against your home, that does not need to be repaid until you move out or die.
  • Because there are no monthly repayments the loan grows in size. Every month interest is added to the loan balance (capitalised).
  • The amount you can borrow is based on your age and the value of your house.
  • Because the loan grows over time the initial amount you can borrow is kept at a low percentage of the value of your home, for example 15% at age 60. This protects you from the loan becoming too large relative to the value of your home and is designed to leave significant equity remaining after the loan has been repaid.

  • The older you are when the loan commences the larger the initial loan can be, for example 45% of the value of the home at age 90.

  • There are minimum and maximum borrowing limits.

  • A 'No Negative Equity Guarantee' ensures that the borrower never has to repay more than the value of the property.

Lifetime Mortgages from Seniors Money International

'The Seniors Money Lifetime Loan' sets the standard for product quality and fairness.  Read more about our policy for fair, quality products.

From application to settlement, a lifetime mortgage from a Seniors Money International company is easy to understand and use. 

All our lifetime mortgages offer the following benefits:

  • A practical and flexible way of using some of the value you have built up in your home without having to move from it.

  • Available to those aged 60 or over who own and live in their own house.

  • You still own your home.  We do not buy a share of your house. You retain 100% ownership and growth. You continue living in it as long as you wish.

  • Two 'nominated residents' can be named.  Both may continue to live in the home for as long as they wish or until the death of the last one.

  • Both nominated residents must be at least 60 years of age or older. (The age of the younger one will be used to determine how much may be borrowed).
  • The Loan does not need to be repaid along the way. It does not need to be repaid until the last surviving nominated resident permanently ceases living in the home or dies.

  • If your approval limit increases (as you become older or your home is now worth more) you can apply for a new, increased loan.

  • If you move house, you will usually be able to transfer the loan to your new home. The new home must meet any eligibility criteria in force.  Part of the loan may need to be repaid if the new home is worth much less than the old one.

  • You will never owe more than the net value of your home, after selling costs. All Seniors Money International companies offer a No Negative Equity Guarantee.  This promises that the borrower or their estate will never have to repay more than the sale proceeds of their property less legal and estate agent fees, as long as they have not defaulted on the conditions of the loan.

Our variable rate loans provide great flexibility throughout the life of the loan:

  • Borrow only what you need right now and come back for more later if you need it: You can choose not to draw down the full approved amount initially and 'top up' to that amount later. This can save a lot of money in interest payments and eliminates the pressure of trying to work out today how much to borrow to cover all future eventualities.

  • Consider various drawdown options: You can take the loan as a lump sum, a series of payments (quarterly or annually) or a combination of both.

  • Repay early with no worry:  Although you don't have to make monthly repayments you are free to pay the interest or make a repayment without penalty at any time.

 

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