Next generation mortgages
Posted: 23 Aug 2006 12:04:37 GMT
Chatham based company Kent Reliance has launched a new mortgage type that can be passed on from generation to generation.
If the holder chooses to not pass on the mortgage at any time, it can be paid off in the normal way.
Should the mortgage holders choose to pass on the loan, then the mortgage could in theory be passed on for generations.
Kent Reliance stated: "The concept is very simple. A person can pay their mortgage on an interest-only basis for their lifetime.
"When they die the mortgage and the property pass to the 'beneficiary' who can continue the mortgage or pay it off."
The mortgage will work like any other standard type and the ability to repay through to retirement will apply as normal.
"The loan can be any of the mortgage range but it may be that the borrower will take a long-term fix - we currently offer a long-term fix at 5.15 per cent for 25 years," the mortgage lender added.
With the recent furore regarding inheritance tax, Kent Reliance believes this new product could lessen the cost of the charge.