For homeowners aged 55 and over in Coventry, a lifetime mortgage in Coventry offers a way to access the equity in your current home without the need to move.

But what if you’re considering purchasing a new property? Can a lifetime mortgage facilitate that? The answer is yes, under certain circumstances.

Understanding Lifetime Mortgages

A lifetime mortgage is a form of equity release in Coventry that allows you to borrow against the value of your home while retaining ownership.

The loan, plus any accrued interest, is typically repaid when you pass away or move into long-term care, usually through the sale of the property.

While commonly used to release funds from your existing home, some lenders permit the use of a lifetime mortgage to purchase a new property.

This can be particularly beneficial if you’re looking to downsize, move closer to family, or find a home better suited to your needs in retirement.

How Does It Work?

When using a lifetime mortgage in Coventry to buy a new home, you would typically contribute a portion of the purchase price from your funds, perhaps from the sale of your current home or savings, and cover the remaining cost with the lifetime mortgage.

The exact amount you can borrow depends on factors like your age, the value of the new property, and the lender’s criteria.

It’s important to note that the property you intend to purchase must meet the lender’s requirements, and you’ll need to demonstrate that it’s your primary residence.

Additionally, the new property must be acceptable to the lender in terms of construction type, condition, and value.

Considerations Before Proceeding

While buying a house with a lifetime mortgage can be a viable option, it’s essential to consider the implications.

The interest on the loan compounds over time, which can significantly reduce the equity left in your home. This may affect the inheritance you plan to leave behind.

Moreover, if you decide to move again in the future, you’ll need to ensure that the lifetime mortgage is portable or be prepared to repay it, which could involve early repayment charges.

Therefore, it’s crucial to think long-term and assess whether this type of mortgage aligns with your plans.

Date Last Edited: June 2, 2025