How much to borrow?
The Loan to Value table indicates the maximum loan amount you can borrow. This may be more than what you should borrow.
An important part of the Spry consultation process is working with you to establish what your financial circumstances are and whether it is suitable or not to borrow the amount you are thinking of applying for.
Because the loan balance will grow over time, the golden rule is that you should only borrow the amount required right now to meet your financial needs, and for which a Lifetime Mortgage is a suitable way to fund the financial needs.
If you borrow less than the maximum allowable amount there is no guarantee that you will be able to borrow further amounts at a future date. A new loan application would be required.
However, if you borrow more than you need right now you will pay interest on money that you do not immediately need. You should not borrow more than you actually need.
Depositing the funds from a Lifetime Mortgage into a bank account will not generate sufficient funds to repay the Lifetime Mortgage and will therefore cost you money over time. This is not a recommended use of the proceeds of a Lifetime Mortgage and should only be considered if you have a requirement to have a cash fund available to you at all times, e.g. for emergencies or for peace of mind, and if you are fully aware of and willing to accept the cost implications involved.
