Disadvantages of Lifetime Mortgages:

·          Under this type of arrangement you have no control over how much of the property will be left when you and/or your spouse dies.

·          With some schemes, with the effects of compound interest over time, the amount of the loan can potentially end up being more than the value of the property when the loan repayment is due. But note that the Annuity Bureau will only ever recommend schemes that provide a no negative equity guarantee.

·          Some Lifetime mortgages also carry early redemption fees if you wanted to repay the loan.

·          Even if it is an unlikely event that you’ll be wanting to repay your loan early you should still make sure that you understand the types of fees involved and whether they’re realistic or not.  Again, your Annuity Bureau Consultant will be able to explain what is involved, before you start your plan.