Market Harborough Building Society Lifetime Mortgages
The Market Harborough Building Society is a trusted provider of mortgages and savings for over 150 years. The society offers a range of retirement mortgages, including lifetime mortgages and equity release plans. In this article, we will focus on lifetime mortgages offered by the Market Harborough Building Society.
Who is Market Harborough Building Society?
Founded in 1870, the Market Harborough Building Society has been owned by its members since then. The society has continued to evolve and innovate, while always putting its members first. It offers a range of products, including mortgages and savings, to meet the financial needs of its members.
What are Lifetime Mortgages?
Lifetime mortgages are a type of equity release plan that allows homeowners to borrow money against the value of their property without having to sell it. The loan is repaid when the homeowner dies or moves into long-term care. Lifetime mortgages are only available to people aged 55 or over.
Why Consider a Lifetime Mortgage?
There are several reasons why someone might consider a lifetime mortgage. For example, it can provide a lump sum to fund home improvements or help family members with their finances. It can also provide a regular income to supplement retirement income.
The Market Harborough Building Society offers lifetime mortgages with competitive interest rates, flexible repayment options, and no early repayment charges. The society also offers a range of features, such as portability and downsizing protection, to give customers more control over their financial future.
Understanding Lifetime Mortgages
Lifetime mortgages are a popular option for people looking to access the equity in their homes to fund their retirement. However, its important to understand how these mortgages work and the risks and benefits associated with them.
How do Lifetime Mortgages Work?
Under a lifetime mortgage, homeowners borrow money against the value of their property without having to sell it. The loan is repaid when the homeowner dies or moves into long-term care. The amount borrowed, plus interest, is typically repaid from the proceeds of the sale of the property.
The amount that can be borrowed under a lifetime mortgage depends on the value of the property and the age of the borrower. The older the borrower, the more they can borrow. Lifetime mortgages are only available to people aged 55 or over.
Benefits of Lifetime Mortgages
Lifetime mortgages can provide a range of benefits to homeowners, including:
- Access to funds to supplement retirement income
- The ability to remain living in their home
- No requirement to make monthly repayments
- The ability to release equity without selling their home
Risks of Lifetime Mortgages
Before taking out a lifetime mortgage, its important to understand the risks associated with this type of loan. These include:
- The amount of debt can grow quickly, due to the roll-up of interest over time
- The interest rate on a lifetime mortgage can be higher than other types of borrowing
- A lifetime mortgage can reduce the value of the borrower’s estate and the amount of inheritance they can pass on to their heirs
- A lifetime mortgage can affect the borrower’s entitlement to state benefits
Eligibility for Lifetime Mortgages
The Market Harborough Building Society offers lifetime mortgages to people aged 55 or over who own their home outright or have a small mortgage outstanding. The society also offers lifetime mortgages to people who live in retirement homes or sheltered accommodation.
Before taking out a lifetime mortgage, its important to speak to a financial adviser to understand the risks and benefits and whether its the right option for you. According to Concise Finance, there are disadvantages to equity release plans, including reduced estate value and potential impacts on entitlements to benefits. However, the Market Harborough Building Society offers lifetime mortgages with competitive interest rates, flexible repayment options, and no early repayment charges. The society also offers a range of features, such as portability and downsizing protection, to give customers more control over their financial future.
Market Harborough Building Society Lifetime Mortgages
Market Harborough Building Society offers a range of lifetime mortgages to meet the needs of its members. In this section, we will explore the lifetime mortgages offered by Market Harborough Building Society.
Lifetime Mortgage Options
Market Harborough Building Society offers several lifetime mortgage options, including:
Monthly Payment Lifetime Mortgage
Under a monthly payment lifetime mortgage, borrowers make monthly payments to cover the interest on the loan. The amount borrowed, plus interest, is typically repaid from the proceeds of the sale of the property.
Lump Sum Lifetime Mortgage
Under a lump sum lifetime mortgage, borrowers receive a lump sum payment and do not need to make any monthly payments. The amount borrowed, plus interest, is typically repaid from the proceeds of the sale of the property.
Drawdown Lifetime Mortgage
Under a drawdown lifetime mortgage, borrowers receive a pre-approved credit limit and can withdraw money as needed. Interest is charged only on the amount withdrawn, and borrowers do not need to make any monthly payments. The amount borrowed, plus interest, is typically repaid from the proceeds of the sale of the property.
Features of Market Harborough Building Society Lifetime Mortgages
Market Harborough Building Society lifetime mortgages offer a range of features to give customers more control over their financial future. These features include:
- Portability: Customers can take their lifetime mortgage with them if they move home.
- Downsizing protection: If the borrower moves to a smaller property that does not meet the lending criteria, the loan can still be repaid without incurring early repayment charges.
- Inheritance protection: Customers can choose to ringfence a percentage of the value of their property to guarantee an inheritance for their beneficiaries.
Eligibility for Market Harborough Building Society Lifetime Mortgages
To be eligible for a lifetime mortgage from Market Harborough Building Society, borrowers must be aged 55 or over and own their home outright or have a small mortgage outstanding. The maximum amount that can be borrowed will depend on the value of the property and the borrower’s age.
Applying for a Market Harborough Building Society Lifetime Mortgage
To apply for a lifetime mortgage from Market Harborough Building Society, customers can visit their website or call their customer service team. The society offers a free, no-obligation quote for prospective customers, according to Concise Finance.
Interest Rates and Fees
Before taking out a lifetime mortgage, its important to understand the interest rates and fees that apply. In this section, we will explore the interest rates and fees associated with Market Harborough Building Society lifetime mortgages.
Interest Rates
Market Harborough Building Society offers lifetime mortgages with competitive interest rates. According to Finance Hub, the society is currently offering equity release with a fixed interest rate of 2.2%. The interest rate on a lifetime mortgage can vary depending on the product chosen and the borrower’s individual circumstances.
Fees
Market Harborough Building Society lifetime mortgages come with a range of fees, which can include:
- Valuation fee: This fee covers the cost of a valuation of the property.
- Application fee: This fee covers the cost of processing the application.
- Legal fees: These fees cover the cost of the legal work associated with the mortgage.
According to Fair Mortgages for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19. The total amount payable would be £189,357.67 made up of the loan amount plus interest, booking fee, completion fee, and valuation fee.
Early Repayment Charges
Market Harborough Building Society lifetime mortgages may come with early repayment charges if the borrower repays the loan early. However, the society offers early repayment options without any extra fees, according to Finance Hub. Its important to understand the early repayment charges that apply before taking out a lifetime mortgage.
Benefits of Market Harborough Building Society Lifetime Mortgages
Market Harborough Building Society lifetime mortgages offer a range of benefits to homeowners looking to access the equity in their homes. In this section, we will explore the benefits of Market Harborough Building Society lifetime mortgages.
Access to Funds to Supplement Retirement Income
One of the main benefits of a lifetime mortgage is that it provides homeowners with access to funds to supplement their retirement income. According to Concise Finance, Market Harborough Building Society offers lifetime mortgages that allow homeowners to borrow up to 65% of the value of their home. This can provide a significant source of income for retirees who may be struggling to make ends meet.
Remain Living in Their Home
Another benefit of a lifetime mortgage is that homeowners can remain living in their home. They do not need to sell their property to access the equity. This can be a significant advantage for retirees who are attached to their home and do not want to move.
No Requirement to Make Monthly Repayments
Under a lifetime mortgage, there is no requirement to make monthly repayments. This can be a significant advantage for retirees who may be on a fixed income and cannot afford to make regular payments. Instead, the amount borrowed, plus interest, is typically repaid from the proceeds of the sale of the property.
The Ability to Release Equity Without Selling Their Home
A lifetime mortgage allows homeowners to release equity without selling their home. This can be a significant advantage for homeowners who may need access to funds but do not want to sell their property. It can also be a way for homeowners to access funds without having to downsize or move to a smaller property.
Inheritance Protection
Market Harborough Building Society offers inheritance protection on its lifetime mortgages. This means that customers can choose to ringfence a percentage of the value of their property to guarantee an inheritance for their beneficiaries. This can be a significant advantage for homeowners who want to ensure that they leave an inheritance for their loved ones.
Features of Market Harborough Building Society Lifetime Mortgages
Market Harborough Building Society lifetime mortgages offer a range of features to give customers more control over their financial future. These features include:
- Portability: Customers can take their lifetime mortgage with them if they move home.
- Downsizing protection: If the borrower moves to a smaller property that does not meet the lending criteria, the loan can still be repaid without incurring early repayment charges.
- Inheritance protection: Customers can choose to ringf
Disadvantages of Market Harborough Building Society Lifetime Mortgages
While lifetime mortgages offer many benefits, they also come with some disadvantages that homeowners should be aware of. In this section, we will explore the disadvantages of Market Harborough Building Society lifetime mortgages.
Reduced Estate Value
One of the main disadvantages of a lifetime mortgage is that it can reduce the value of the borrower’s estate. According to Concise Finance, the amount borrowed, plus interest, is typically repaid from the proceeds of the sale of the property. This means that there may be less money available to pass on to beneficiaries.
Impact on Entitlements to Benefits
Another disadvantage of a lifetime mortgage is that it can impact the borrower’s entitlements to benefits. According to Concise Finance, the amount borrowed, plus interest, is typically repaid from the proceeds of the sale of the property. This means that there may be less money available to pay for care costs or other expenses that may impact the borrower’s entitlements to benefits.
Interest Rates and Fees
Lifetime mortgages come with interest rates and fees that can be higher than other types of loans. According to Finance Hub, the interest rate on a lifetime mortgage can vary depending on the product chosen and the borrower’s individual circumstances. Additionally, lifetime mortgages come with a range of fees, including valuation fees, application fees, and legal fees.
Reduced Inheritance
Under a lifetime mortgage, the amount borrowed, plus interest, is typically repaid from the proceeds of the sale of the property. This means that there may be less money available to pass on to beneficiaries. While Market Harborough Building Society offers inheritance protection on its lifetime mortgages, this may not be enough to offset the impact of the loan on the borrower’s estate.
Impact on Future Options
Taking out a lifetime mortgage can impact the borrower’s future options. For example, if the borrower later decides to move to a smaller property or downsize, the amount owed on the lifetime mortgage may impact their ability to do so. Additionally, the interest on the loan can compound over time, which can make it more difficult to repay the loan in the future.
Is the Market Harborough Building Society Lifetime Mortgage Right for You? ##
It’s crucial to weigh the benefits and drawbacks of a Market Harborough Building Society lifetime mortgage before deciding whether it’s the best choice for you. We’ll offer some advice in this section to assist you in making a wise choice.
Factors to Take into Account
Consideration should be given to the following aspects before obtaining a lifetime mortgage:
- Your age and health: The older you get, the more equity you might be able to release. You might not be eligible for a lifetime mortgage, though, if you have health problems.
- The value of your property: The amount you can borrow will depend on how much your property sells. A lifetime mortgage might not be the best choice for you if the value of your property is lower than the amount you want to borrow.
- Your future plans: A lifetime mortgage might not be the best choice for you if you intend to downsize or move quickly. It’s also important to think about your long-term plans because taking out a lifetime mortgage can have an impact on your future options.
Seeking Professional Advice
It’s crucial to seek professional advice before obtaining a lifetime mortgage. This can involve speaking with an independent financial advisor who can assist you in comprehending the benefits and drawbacks of various equity release options and determining whether they are appropriate for your particular needs.
Final Thoughts
For homeowners looking to access the equity in their homes, Market Harborough Building Society lifetime mortgages have a number of advantages. They can offer a variety of features to give customers more control over their financial future, allow homeowners to continue living in their homes, and provide a source of income in retirement. They do, however, have some drawbacks, such as the potential effect on the borrower’s estate and entitlements to benefits. It’s crucial to weigh the benefits and drawbacks of obtaining a lifetime mortgage before doing so to make sure it is the best choice for your unique requirements.
Ready to Explore Market Harborough Building Society Lifetime Mortgages?
If you are considering a lifetime mortgage, Market Harborough Building Society may be the right choice for you. With a range of products to choose from and a commitment to putting members first, Market Harborough Building Society is a trusted provider of mortgages and savings for over 150 years.
Apply Today for a No-Obligation Quote
If you are interested in a Market Harborough Building Society lifetime mortgage, you can apply for a no-obligation quote on their website at mhbs.co.uk. This will give you an idea of how much you may be able to borrow and what the repayments may be.
Read More About Equity Release
If you want to learn more about equity release and how it works, check out our other articles on the topic. We offer a range of informative and engaging content to help you make informed decisions about your finances.
Contact Us for More Information
If you have any questions about Market Harborough Building Society lifetime mortgages or any of our other products, dont hesitate to get in touch. Our friendly and knowledgeable team is always on hand to help you find the right product for your individual needs.
Take Control of Your Financial Future
At Market Harborough Building Society, we believe that everyone should have the opportunity to take control of their financial future. Whether you want to release equity from your home, save for a rainy day, or plan for retirement, we have the products and expertise to help you achieve your goals. So why wait? Apply today and take the first step towards a brighter financial future.
Common Questions
Question: Who is eligible for a Market Harborough Building Society Lifetime Mortgage?
Answer: Homeowners over 60 who own and reside in their property are eligible.
Question: What is the maximum amount that can be borrowed with a Market Harborough Building Society Lifetime Mortgage?
Answer: The maximum amount that can be borrowed will depend on the value of the property and the borrower’s age.
Question: How does a Market Harborough Building Society Lifetime Mortgage work?
Answer: A lifetime mortgage enables homeowners to release equity in their home, which is paid back upon the sale of the property.
Question: What are the repayment options for a Market Harborough Building Society Lifetime Mortgage?
Answer: Market Harborough Building Society offers a range of repayment options, including the option not to make monthly payments.
Question: Can I still leave an inheritance with a Market Harborough Building Society Lifetime Mortgage?
Answer: Yes, homeowners can choose to ring-fence a portion of the property value as an inheritance for their loved ones.
Question: What happens if I want to move house with a Market Harborough Building Society Lifetime Mortgage?
Answer: Most Market Harborough Building Society lifetime mortgages are portable, which means that you can take them with you when you move house.
