What is a Reverse Mortgage?
A reverse mortgage is the Australian name for a lifetime mortgage, a form of equity release for the over 55s.
It's called a reverse mortgage because the interest typically rolls up rather than being paid every month so, whereas a normal repayment mortgage decreases over the term, this does the reverse.
There is plenty of choice with lifetime mortgages now with some plans having no monthly payment so the interest rolls up as described but other plans allow interest payments or part interest payments; other options have no monthly payment but allow occasional payments.
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