An interest only lifetime mortgage is a scheme that will allow you to keep as much equity in your property as possible once it is sold, and which will help you to generate a maximum income, with fairly small repayments.

Basically, instead of repaying your mortgage debt in conventional instalments which are, of course, dictated by the value of your home, you simply repay the interest during your lifetime. Once this term is ended, this means that the value of your home should be equivalent to your remaining debt, and this makes repayment ultimately simple.

There are thus, several benefits to the interest only lifetime mortgage. Chief amongst these is perhaps the fact that the debt should not fluctuate in value in any way, as long as you make each payment every month. In addition, you will find that you preserve more equity in your property in the long term than you would with a conventional mortgage scheme.

There are, however, also disadvantages. Of course, the lifetime mortgage demands that you make payments every month. These need to be regularly maintained or the value of your debt increases.

Thus, a lifetime mortgage is an interesting and useful solution if you are keen to release equity from your home. However, before you make any hard and fast decisions concerning whether you participate in this kind of scheme or not, you will want to consider both advantages and disadvantages.