Senior’s Equity Release Donegal, Ireland

You may have seen the ads on TV (UK channels) where people of a certain age can release equity from their home to help fund their lifestyle in retirement or (as the ads say) re-open the bank of Mum and Dad. Before deciding to take this option, it is essential that you understand the products available, and it is essential that you seek advice from a Trusted Qualified Financial Advisor like Advice First Financial.

For later life finance currently in Ireland there is only one type of product available, that is a Life Time Loan.

Senior’s Equity Release Product in Donegal, Ireland  | A Lifetime Mortgage Letterkenny

While most traditional banks in Ireland don’t offer Senior’s Equity Release, there are other specialised options available. Spry Finance, a retail division of Seniors Money Mortgages (Ireland) DAC, focuses specifically on providing Lifetime Loans to people over 60 in Ireland.

This means they have in-depth experience and expertise in tailoring loans to the needs of Irish seniors. If you are considering Equity Release, get in touch with us at Advice First Financial for a discussion about your personal options.

Seniors Equity Release Donegal Happy Couple

Later Life Finance: Lifetime Mortgages Donegal

At a glance 

  • Lifetime mortgages allows you to release the cash locked in your home.
  • The funds can be used for whatever purpose you choose.
  • A lifetime mortgage is a loan secured against your property, just the same to any other mortgage.
  • Equity Release allows you to stay in your own home until you die or move into permanent care.

LIFETIME MORTGAGES LETTERKENNY, DONEGAL

A lifetime mortgage is a type of equity release. You borrow a set amount of money and use your property as security. Unlike a standard mortgage, there is no need to make monthly payments towards the loan as you can choose to let the interest roll up over time. This means the interest is added to your original loan and to any interest already accrued and this means your debt will increase over time. When you sell your home, die or go into long term care the loan needs to be repaid including the interest. This is usually done through the sale of the property.

Money Fact Tip

This type of plan has proven very controversial in the Irish Market in the past. We advise involving your family in this discussion. We also advise seeking advice from a Trusted Financial Advisor.

What is a Life Time Mortgage for Seniors Equity Release Ireland?

A Life Time Mortgage is where you take a mortgage on your home. You borrow against the value of your home The Mortgage company will receive the relevant mortgage balance from the sale of your home when you move into long-term care or die.

A Life Time Mortgage enables you to receive a cash lump sum, typically up to 70% of the value of your home, whilst allowing you to remain in your property, normally there will not be a monthly payment, the interest is rolled up and the outstanding balance paid off by your estate when you die or when the property is sold after you move into long term care. You can pay back up to 10% of the loan amount in any year to reduce the rolling interest charges. Repayment above 10% of the loan amount could trigger an early repayment charge in the first 10 years.

The amount of equity you can release is based on 2 things.
1: The value of your property
2: Your age

You may have built up considerable equity in your bricks and mortar over the years. The traditional way to access this equity is to sell up and downsize, however over 60’s can now release cash from their home using a Life Time Mortgage while staying in the home they love.

With people now living longer, and pensions not being what they once were, savings are having to stretch much further to last throughout retirement, we can help with this.

STAY IN YOUR HOME

A Life Time Mortgage keeps you in the place you’ve called home for the rest of your life or until you enter long-term care when the plan ends.

LESS THAN MARKET VALUE

Generally, the amount you receive will be less than open market value as this valuation is based on no one living in the property, i.e., the property is sold vacant. The amount you receive is based on the fact that you continue to live in your home for the rest of your life or until you enter sell the property or move into long-term care.

EARLY REPAYMENT CHARGE (ERC)

Because this is a fixed-rate product, if you make any loan repayments before you are required to, this will lead to unexpected costs for the lender. An Early Repayment Charge (ERC) will only then arise if you repay some or all of the loan within 10 years of taking it out. Even then an ERC will only arise if interest rates are lower than when the loan was taken out and if you are not eligible for one of the exemptions described below. In such circumstances, an ERC may arise if you:

  • repay more than 10% of the original loan balance in any one year within 10 years of taking it out or,
  • voluntarily repay the full loan balance within 10 years of taking it out

For more on the Early Repayment Charge see the “Can I make Monthly repayments” FAQ below

Maximum Loan Amount

This depends on the value of your property and your age at the start of the loan (see table).
For example if you are 60 you may borrow 15% of the value of the property but if you are 85 or older you may borrow 40%.

Age  % allowed* Age  % allowed* Age  % allowed*
60 15% 69 24% 78 33%
61 16% 70 25% 79 34%
62 17% 71 26% 80 35%
63 18% 72 27% 81 36%
64 19% 73 28% 82 37%
65 20% 74 29% 83 38%
66 21% 75 30% 84 39%
67 22% 76 31% 85 40%
68 23% 77 32%

*This depends on the value of your property and your age at the start of the loan (see table).
For example if you are 60 you may borrow 15% of the value of the property but if you are 85 or older you may borrow 40%.

Overall Maximum

Irrespective of age or property value, the overall maximum amount that can be borrowed is €500,000.
At its absolute discretion (for example where it is difficult to accurately value a property) your lender may make a loan offer at a lower amount than indicated by the LTV table.Use the table above to see how much you could borrow based on your own age and house value. Remember for a joint application, the youngest age is used for the lending amount.

Who is Eligible?

You can put in place a Life Time Mortgage and release the equity locked in your home if:

  • Each owner names on the property deed must be aged 60 and over.
  • Your property must be of standard construction, located within the Republic of Ireland, and worth at least €250,000 in Dublin or €175,000 outside Dublin. Properties at minimum values may be subject to restricted loan sizes
  • The property must be your main residence is in the Republic of Ireland.
  • Every owner (i.e. each person named on the deeds of the property) must be named as a borrower and sign the loan agreement.

Please note: you must satisfy all four criteria above to be eligible for a Lifetime Loan

You must be resident in the property and it must:
  • Be your main residence.
  • Be acceptable to the lender, Seniors Money, at its sole discretion, as security for a Lifetime Loan.
  • Meet the minimum valuation criteria.
  • Not be used for any commercial purpose.
  • Be of conventional construction and in good repair.
  • Be located in the Republic of Ireland.
  • Be freehold or, if leasehold have a minimum of 99 years remaining.
  • Any existing mortgage or charge on the property must be cleared either from savings or from the proceeds of your Lifetime loan.
The following types of property don’t qualify:
  • Holiday homes
  • Investment properties / Buy-to-let properties
  • Properties whose principle value is the development potential of the site
  • Properties in a poor state of repair
  • Isolated rural properties
  • Commercial properties
  • Farm houses whose value cannot be separated from the farm
  • Period homes and non-standard residences

How does it work?

The potential amount you can release is calculated based on:

  • Age,
  • If a couple, then the age used in the younger
  • Property Value

A couple of examples:

A 75 year old with a property valued at €300,000.00 can release up to €90,000.00 (30% of the value)

OR

A couple one person 75 year old and the other person aged 72 with a property valued at €300,000.00 can release up to €81,000 (27% of value) Lending amount is based on the youngest person.

How to Apply?

The process is relatively simple, here are the steps that will be taken.

Get an Indicative Quotation 

You can receive an indicative quotation by giving us a call. We’re happy to walk you through this if you require further detail or would like us to do another quotation for you. Email us, or simply give Advice First a call and we’ll be happy to arrange an appointment with one of our advisors as soon as possible.

Seniors Equity Release Application Donegal

Discuss with your family

We would suggest, it’s important to discuss your plans with your family as any decisions you make now could affect them later down the line. RECEIVE INDEPENDENT FINANCIAL ADVICE FROM A QUALIFIED FINANCIAL ADVISOR (QFA). We are happy to answer your questions.
Whilst you don’t have to engage a financial advisor to get access to this type of lending, we obviously would recommend that you do engage with an advisor, like Advice First Financial.

Second conversation 

The lender with also provide you with a dedicated advisor who will present their recommendation to you in writing and answer any questions along the way. They will also provide you with a personalised report and allow you time to consider their recommendation.

Paperwork

If you decide to go ahead, the lenders advisor will package your application including an independent property valuation, BER certificate, statement of suitability, and will promote your application to the credit team.

APPROVAL & SIGNATURES

Your Lender will review your application and if successful will issue a Letter of Approval. This outlines the approved terms and asks you to confirm if you wish to proceed.

Solicitor:

A solicitor of your choosing will provide independent legal advice, this is a requirement of the plan. They will also cover the other legal aspects for you. At this stage you will need to provide their details so the full legal pack can be sent to them.

COMPLETION – FUNDS ADVANCED 

Typically, the timeline is around 16 -20 weeks from application to completion.

If Unsure

Why not give us, Advice First Financial a call and we will be happy to discuss the options available and whether they are suitable for you or not.

If you wish to book an appointment to go over Later Life Finance in more detail, click here

Get Advice

Talk to us now and make an appointment with one of our Letterkenny team of QFAs. We are here to help with your Financial Planning Concerns. Ask us questions on Retirement & Pension, Life Insurance & Protection, Mortgages, and Investment Advice. Get in touch or give us a call at 074 91 03938.

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Frequently Asked Questions on Life Time Mortgages

What is equity release?

Assuming there is equity in the property, i.e., the value of the property is greater than the mortgage outstanding, it is a financial solution that allows homeowners to raise money from their property as a lump sum.

What is a lifetime loan?

A Lifetime Loan is a mortgage loan secured against your home. You do not sell a share of your home. You borrow a cash sum using your house as security. You can use this money as you wish. This type of loan is designed to last for the rest of your life. There are no regular repayments to be made. It becomes repayable if you sell your home or after you die or permanently cease to reside in your home.

What are the costs & fees?

Fees and Costs

Lender fees and charges payable to your lender

Set-up Fee: €1,500 – Applies to all new loans.

This fee covers the cost of an independent property valuation (€180) and a contribution to the costs incurred by Lender in arranging your loan (€1,320).

You can choose to pay the Set-Up Fee by cheque OR the fee can be included in your Lifetime Loan (and deducted from the amount being borrowed when the funds are paid out to you). If you decide to include the fee in your Lifetime Loan you are borrowing the fee, and the part of your loan balance associated with the fee will grow over time (assumes fixed interest rate of 6.45% p.a. throughout the life of the loan):

Loan Variation Fee: €500 – Applies to all variations.

Payable for any variations during the life of the loan, e.g. adding or removing a borrower, changes to the registered security or title, etc.
You will also be liable for any 3rd party costs incurred by the lender when any variation is required during the loan (e.g. legal fees). The 3rd party costs will be calculated at the time of the variation, and we will provide you with details of these costs at the time.

Loan Redemption Fee: €100 – Payable upon full repayment of the loan
This fee contributes to the costs arising when discharging a loan, e.g. legal or registration fees incurred by your lender in redeeming the mortgage.

Early Repayment Charge (“ERC”)
Because this is a fixed rate product, if you make any loan repayments before you are required to, this will lead to unexpected costs for your lender. An Early Repayment Charge (ERC) may arise if you repay some or all of the loan within 10 years of taking it out.

Other costs

In addition to fees payable to your lender you will be responsible for agreeing and paying any fees your own solicitor will charge for providing advice to you. If you engage a financial advisor, they may also charge a fee for their advice.
In all cases this will include their fee for providing independent legal advice to you on the loan you are entering into.
Where relevant, additional legal fees may arise, e.g. separate independent legal advice for a person not on the title deeds or for an occupier who will not be one of the two nominated residents.

How do I find out if senior equity release is suitable for me?

You should contact a Trusted Financial Advisor in the first instance, they will discuss all possible options and help you decide whether a senior’s equity release type plan is the best option for your individual circumstances.

How much can I release?

The cash lump sum depends on just 2 factors: your age(s) and the current open market value of your property. 
For example if you are 60 you may borrow 15% of the value of the property but if you are 85 or older you may borrow 40%.

How long will it take to receive my money?

We have found through our experience this is influenced greatly by your choice of solicitor. Subject to you appointing a solicitor who is experienced in Senior Equity Release Plans it is possible to receive your money within 16-20 weeks of application.

What can I use the funds for?

The funds are yours to do with as you wish

What happens if I still have a mortgage?

If you have a current mortgage or any legal charge on the property this would need to be paid off from the money released, your solicitor will discharge this on the way through.

Will I have to pay tax on the money raised?

There is no tax to pay on funds raised from the value of your principal private residence, but if in doubt you should seek independent tax advice.

Am I responsible for any charges relating to my Senior's Equity Release?

There are some upfront costs which are laid out in detail as part of your full quotation. These may include the cost of your independent solicitor and property valuation amongst other items.

Do I need to use a Qualified Financial Advisor?

No, you need to engage a financial advisor, you can deal directly with the providers. But as with any mortgage we do recommend you discuss your options with a Trusted Financial Advisor, who will look at all options.

Do I have to instruct a solicitor?

Yes. As with any mortgage you must take independent legal advice when taking out a senior equity release plan and engage a solicitor on your behalf to complete the lending

Can I choose my own solicitor?

Yes. You can choose your own solicitor to represent you when taking out a senior equity release plan. If you don’t have a solicitor, we can provide you with a recommendation.

Will I still own my property?

Yes, as with any mortgage your retain ownership of the property.

What happens should I need to move into long term permanent care?

The loan becomes repayable 12 months after you die or cease to reside in in the property. Unless there are other sources of funds to repay the loan, your home would have to be sold. The sale proceeds, after legal and selling costs have been deducted, will then be used to repay your outstanding loan balance.

When your property is put up for sale, your lender must be notified of the sale price. If the sale price, less expected legal and selling costs, is likely to be lower than the outstanding loan balance, the lender may insist on a second, independent valuation at its cost. In the event of a dispute, a mediation process will be followed.

What happens to my plan after I die?

If you entered into the plan with a spouse or partner, upon the death of the first plan holder, you should let your lender know and send them a copy of the death certificate, so they can update their records. Upon death of the “last homeowner” the executors of your estate need to notify your lender and provide them with details of the solicitor dealing with the Estate. They will arrange for the property to be valued and placed on the open market. Once a sale is completed the proceeds will clear the outstanding balance of your loan.

Can I make monthly repayment?

Generally, you don’t make monthly repayment to this plan. But you can choose to make repayments up to 10% of the amount owed in that year.

Because this is a fixed rate product, if you make any loan repayments before you are required to, this will lead to unexpected costs for the lender (Seniors Money). This may trigger an Early Repayment Charge

An Early Repayment Charge (ERC)

An Early Repayment Charge will only then arise if you repay some or all of the loan within 10 years of taking it out. Even then an ERC will only arise if interest rates are lower than when the loan was taken out and if you are not eligible for one of the exemptions described below.

In such circumstances, an ERC may arise if you:

  • repay more than 10% of the original loan balance in any one year within 10 years of taking it out  or,
  • voluntarily repay the full loan balance within 10 years of taking it out

 

Time limit to ERC

The ERC only applies to repayments made during the first 10 years*.

  • Any repayments made after 10 years are exempt from an ERC
  • For repayments made within 10 years, the ERC only applies to the remaining period to 10 Years

 

Example: A loan repaid 6 years after taken out will incur 4 years of ERC

*If you are aged 78 or older when the loan commences, no ERC will arise after your 88th birthday. For example, if you are aged 80 when the loan is taken out and repay it 3 years later, the ERC would only apply to the remaining 5 years to your 88th birthday.

No ERC if interest rates are higher

No ERC will arise if interest rates when the repayment is made are higher than when the loan was taken out. This is determined by comparing:

– A The 10 year Irish Government Bond rate at the time you took out the Lifetime Loan, with
– B The 5 year Irish Government Bond at the date you are making the full repayment (or the nearest comparable rate most favourable to you)

If B is higher than A no ERC is payable.

 

ERC Exemptions

No ERC will arise when a loan is repaid in full or in part due to one of the following events:

  • Death of last Nominated Resident
  • Move to permanent long-term care of last Nominated Resident
  • Full repayment within 3 years of death or move to permanent long-term care of the first Nominated Resident
  • Sale of the property
  • Repayment following demand by us in certain circumstances
  • After 10 years of taking out your Lifetime Loan
  • After your 88th birthday e.g. If you are aged 80 when the loan is taken out and you repay it 3 years later, the ERC would only apply to the remaining 5 years to your 88th birthday
  • For repayments made within 10 years, the ERC only applies to the remaining period to 10 years e.g. a loan repaid 7 years after taken out will incur 3 years of ERC

How the ERC is calculated

No ERC will be charged if interest rates are higher than or equal to when the loan was taken out. This is determined by comparing:

  • The 10-year Irish Government Bond rate at the time you took out the Lifetime Loan, with
  • The Irish Government Bond rate for remaining period in respect of which the ERC is payable at the date you are making the repayment (or the nearest comparable rate most favourable to you)

Can I sell and move to a different property?

You remain the owner of the house, so you are entitled to sell it and move to another one at any time. However, a number of practical issues arise:

  • If you sell the house the loan becomes due for repayment.
  • You may request to transfer your loan to the new house instead, subject to the usual lending criteria (age and house value), but you must tell your lender in advance. If the new property is worth less than the original one you may be required to repay some of the loan.
  • If there would be insufficient funds to repay the loan after selling the house and buying a new one, you may not be able to move unless you have alternative funds to repay the loan (or part of the loan in a transfer situation).

It is best that you contact your advisor or lender first if you are thinking of moving. A new loan application will be required, including a new Set Up fee and new legal fees.

Do I need to consult my family before proceeding?

This is a personal and individual matter for each homeowner. No don’t have to involve your family but we recommend you discuss your plans with them before making an application. Your qualified financial advisor may also advice that some of your family members attend the meeting with you.

Can I leave some inheritance?

Yes. At the outset you borrow a percentage of the value of your home, any money remaining after the outstanding balance of the loan is cleared can form part of your estate upon death.

What happens when I no longer live in my home?

The loan becomes repayable 12 months after you die or cease to reside in in the property. Unless there are other sources of funds to repay the loan, your home would have to be sold. The sale proceeds, after legal and selling costs have been deducted, will then be used to repay your outstanding loan balance.

When your property is put up for sale, the lender must be notified of the sale price. If the sale price, less expected legal and selling costs, is likely to be lower than the outstanding loan balance, the lender may insist on a second, independent valuation at its cost. In the event of a dispute, a mediation process will be followed.

Can I end the plan early and clear the Life Time Loan

You can at any stage clear the outstanding balance but if you so in the first 10 years of the plan it may tigger An Early Repayment Charge (ERC)

Because this is a fixed rate product, if you make any loan repayments before you are required to, this will lead to unexpected costs for the lender. This may trigger an Early Repayment Charge

An Early Repayment Charge (ERC)

An Early Repayment Charge will only then arise if you repay some or all of the loan within 10 years of taking it out. Even then an ERC will only arise if interest rates are lower than when the loan was taken out and if you are not eligible for one of the exemptions described below.

In such circumstances, an ERC may arise if you:

  • repay more than 10% of the original loan balance in any one year within 10 years of taking it out  or,
  • voluntarily repay the full loan balance within 10 years of taking it out

 

Time limit to ERC

The ERC only applies to repayments made during the first 10 years*.

  • Any repayments made after 10 years are exempt from an ERC
  • For repayments made within 10 years, the ERC only applies to the remaining period to 10 Years

 

Example: A loan repaid 6 years after taken out will incur 4 years of ERC

*If you are aged 78 or older when the loan commences, no ERC will arise after your 88th birthday. For example, if you are aged 80 when the loan is taken out and repay it 3 years later, the ERC would only apply to the remaining 5 years to your 88th birthday.

No ERC if interest rates are higher

No ERC will arise if interest rates when the repayment is made are higher than when the loan was taken out. This is determined by comparing:

– A The 10 year Irish Government Bond rate at the time you took out the Lifetime Loan, with
– B The 5 year Irish Government Bond at the date you are making the full repayment (or the nearest comparable rate most favourable to you)

If B is higher than A no ERC is payable.

 

ERC Exemptions

No ERC will arise when a loan is repaid in full or in part due to one of the following events:

  • Death of last Nominated Resident
  • Move to permanent long-term care of last Nominated Resident
  • Full repayment within 3 years of death or move to permanent long-term care of the first Nominated Resident
  • Sale of the property
  • Repayment following demand by us in certain circumstances
  • After 10 years of taking out your Lifetime Loan
  • After your 88th birthday e.g. If you are aged 80 when the loan is taken out and you repay it 3 years later, the ERC would only apply to the remaining 5 years to your 88th birthday
  • For repayments made within 10 years, the ERC only applies to the remaining period to 10 years e.g. a loan repaid 7 years after taken out will incur 3 years of ERC

How the ERC is calculated

No ERC will be charged if interest rates are higher than or equal to when the loan was taken out. This is determined by comparing:

  • The 10-year Irish Government Bond rate at the time you took out the Lifetime Loan, with
  • The Irish Government Bond rate for remaining period in respect of which the ERC is payable at the date you are making the repayment (or the nearest comparable rate most favourable to you)

Who is responsible for maintenance and insurance?

As you are living in the home, you remain responsible for the day-to-day maintenance of your property (for example, decorating and repairs) together with the property insurance and all bills and taxes.

What happens if maintenance work or alterations are needed to my home?

It is the homeowner’s responsibility to maintain the property to a reasonable standard. If you require any alterations to your property, you must firstly obtain Home Plus’s written consent, which will not be unreasonably withheld. Any request must be sent in writing with full details of the works involved prior to them being undertaken. Home Plus will then decide and notify you in writing where they consent to such works. If you are in any doubt about the requirements here, then feel free to call or email Home Plus and one of their team will be happy to help you. Please note: Minor decoration or repainting does not require a request. Only when there are material alterations being made, do they require our consent.

Other Residents

Other residents

Friends or family may live with you but if they are not Nominated Residents they will have no right under the Lifetime Loan to remain in the property after you (the second of you where there are two Nominated Residents) die or cease to reside in your property.

Depending on the age and circumstances of these other residents, it may not be possible to get a Lifetime Loan on the property or these other residents may be required to obtain their own independent legal advice and sign a waiver acknowledging the relevant loan conditions.

The Nominated Residents are obliged to complete an Annual Questionnaire to inform the lender of any changes in circumstances which might affect the loan.  This includes a question on whether there are any changes in who is resident in the property.

It is a condition of the Lifetime Loan that you do not lease all or part of your property to another party without the lender’s prior approval.

What if a relative or carer wants to live with me?

Residents in the home

A Lifetime Loan is primarily intended for singles or couples living without other people in residence with them. Life can be more complicated than that, so you need to know the implications if there are other residents in the home.

Nominated Residents

The Lifetime Loan allows a maximum of two residents to be classed as ‘Nominated Residents’:

  • Only Nominated Residents have the right to live in the property for as long as they live or as long as they wish without repaying the loan.
  • Where there is only one Nominated Resident, he or she must be at least 60 years of age.
  • Where there are two Nominated Residents, the younger of you must be at least 60 years of age.

Other residents

Friends or family may live with you but if they are not Nominated Residents, they will have no right under the Lifetime Loan to remain in the property after you (the second of you where there are two Nominated Residents) die or cease to reside in your property.

Depending on the age and circumstances of these other residents, it may not be possible to get a Lifetime Loan on the property or these other residents may be required to obtain their own independent legal advice and sign a waiver acknowledging the relevant loan conditions.

The Nominated Residents are obliged to complete an Annual Questionnaire to inform the lender of any changes in circumstances which might affect the loan.  This includes a question on whether there are any changes in who is resident in the property.

It is a condition of the Lifetime Loan that you do not lease all or part of your property to another party without the lender’s prior approval.

Can I top up my loan?

Borrowing more later

An existing Lifetime Loan can’t be ‘topped up’. Instead, you would have to take out a new, larger loan and repay the old loan using some of the proceeds of the new loan.
The interest rate for the new loan would be the interest rate on offer at the time. This might be higher or lower than the rate on the old loan.

Borrowing More

If your future circumstances change, and you would like to borrow more, this might be possible if the combination of your future age and house value would qualify you for an amount exceeding your current loan balance.
For example, if you initially borrowed €50,000 and this grew over time to €70,000, you could apply for a new loan in excess of €70,000 if your then age and property value supported it.

The old loan would have to be repaid and you would receive the difference. For example, if the new loan was for €100,000 you would have to use €70,000 to repay the original loan and would receive a net amount of €30,000 with a new starting loan balance of €100,000.

Loan Balance €70,000
New Loand  Starting Balance €100,000
Extra amount released: €30,000 (after repaying the original loan)

 The process would be the same as for a new loan application, involving a new Client Fact Find, property valuation, full legal process and the payment of any set-up fees required for new loans.

There is no guarantee that you will be approved for a new loan at a future date. The maximum amount of your proposed new Lifetime Loan will be determined based on your property value and your age at the date of the new application.

Is my pension affected?

Possibly, but you should check all this information with your qualified financial advisor and your local welfare officer.

Does my plan change if my property rises in value?

Your plan does not change based on a rise in property value.

Does my plan change if my property decreases in value?

Your plan does not change based on a fall in property value.

Legal Warnings: The following warnings contain important and useful information so please read them carefully.

WARNING: WHILE NO INTEREST IS PAYABLE DURING THE PERIOD OF THE MORTGAGE, THE INTEREST IS COMPOUNDED ON A MONTHLY BASIS AND IS PAYABLE IN FULL IN CIRCUMSTANCES SUCH AS DEATH, PERMANENT VACATION OR SALE OF THE PROPERTY.

WARNING: PURCHASING THIS PRODUCT MAY NEGATIVELY IMPACT ON YOUR ABILITY TO FUND FUTURE NEEDS.

WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.

If your Lifetime Loan is being used for debt consolidation purposes:

WARNING: THIS NEW LOAN MAY TAKE LONGER TO PAY OFF THAN YOUR PREVIOUS LOANS. THIS MEANS THAT YOU MAY PAY MORE THAN IF YOU PAID OVER A SHORTER TERM.