With a Home Reversion Plan, the share of the property that you did not sell to the provider belongs to you. When you are no longer with us and your home is sold, that share of the property is passed onto your family. As there is no interest charged on a Home Reversion Plan there is no debt to be left.
With a Lifetime Mortgage even though interest is charged, as long as you have abided by the lenders terms and conditions, if when your home is sold the proceeds from the sale are not enough to repay the outstanding Lifetime Mortgage balance, the lender will never ask your family to come up with the difference. The lender has to write off this loss. The maximum amount a lender who offers the No Negative Equity Guarantee could ever be entitled to is 100% of the sale price of the property meaning that you cannot leave your family with a debt.
By loading the video, you agree to YouTube’s privacy policy. Learn more
Load video