Discover Omni: Enhanced Equity Release for Your Retirement Goals
We can now offer our clients a new lifetime mortgage called Omni, from the specialist lender more2life. Retirement Solutions is one of a select group of advisory firms with early access to this plan, and we want to provide a clear guide to its features.
A lifetime mortgage is a loan secured against your home. It allows homeowners aged 55 and over to release a portion of their property’s value as a tax-free cash sum. The loan, along with the interest that rolls up, is typically repaid from the sale of your home when you pass away or move into long-term care.
Higher Borrowing with Broader Criteria
The Omni plan has been designed to help homeowners in a wider variety of circumstances.
One of its key features is a higher Loan-to-Value (LTV), allowing you to borrow up to 56.3% of your home’s worth. This can provide a larger cash sum for those who need it for goals like clearing an existing mortgage or helping family.
It’s important to remember that as interest on the loan compounds, the total amount you owe will grow over time. Releasing more equity will reduce the inheritance you can leave for your beneficiaries.
The plan also has broad lending criteria, meaning it can accommodate less common property types that may have been difficult to secure a loan against in the past, including those with:
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Up to two annexes
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Basement flats and studios
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Some forms of personal business use
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Multiple titles
Important Things to Consider
Taking out a lifetime mortgage is a major financial decision. Before proceeding, you must consider the following:
Your Inheritance Will Be Reduced: A lifetime mortgage is repaid from the value of your home, which will reduce the amount of money you can leave to your family.
Your Entitlement to Benefits May Be Affected: The cash you release is considered savings, which could impact your eligibility for means-tested state benefits like Pension Credit or Universal Credit.
This is a Long-Term Commitment: A lifetime mortgage is designed to last for the rest of your life.
Is This Plan Right for You?
The Omni lifetime mortgage offers a unique set of features that may be suitable for some, but it won’t be right for everyone.
To understand if this or any other equity release plan is a suitable option for your personal circumstances, it is essential to seek professional financial advice. Our team can provide a personalised illustration and talk you through the benefits, costs, and risks involved.
Contact us today to arrange a free, no-obligation consultation with one of our team.
