Lifetime Mortgage

What is a lifetime mortgage?

It's a type of equity release that allows your client to unlock some of the equity from their home without having to move. It’s a loan that’s secured against their home to give them a tax-free cash sum or smaller amounts that they can take as and when they need. With a lifetime mortgage your clients won’t have to make any monthly payments. Instead the interest is added to the amount they owe each month. This means we charge interest on the loan plus any interest already added.

Who is our Lifetime Mortgage for?

Our Lifetime Mortgages are for clients who:

  • Are aged 55 or over,
  • Are living in or buying their own home, with a small or no mortgage,
  • Live in England, Wales or mainland Scotland, and
  • Own a home worth a minimum of £100,000 or £150,000 for ex council, ex housing association or ex Ministry of Defence properties.
  • Have discussed the benefits and risks of a lifetime mortgage with their family and friends and they know: 
    • There may be cheaper ways to borrow money.
    • The impact on any inheritance.
    • The interest amount is added to the loan each month, which means the loan and outstanding interest grow quickly.
    • Repaying the loan early is likely to cause a significant early repayment charge.
    • Releasing more from the full loan amount later may cost more or less depending on the current interest rate at the time.

How can it help?

A lifetime mortgage could help your client achieve their retirement ambitions. Some individuals may use a lifetime mortgage for:

  • Repaying outstanding interest only mortgages
  • Home and garden improvements
  • Helping family - children and grandchildren
  • Enjoying retirement more

Our PDF file: Lifetime Mortgages - All you need to know Q0054380 PDF size: 4.0MB includes full details about typical uses and product features, risks and benefits, and you can use it with your clients. 

How much does your client need to release?

Our Flexible Lifetime mortgage is for clients who want to borrow at least £10,000. PDF file: Flexible Lifetime Mortgages Product Summary Q0052431 PDF size: 142KB  

Our Premier Flexible Lifetime Mortgage is for clients who want to borrow at least £250,000. PDF file: Premier Flexible Lifetime Mortgages Product Summary Q0053439 PDF size: 57KB   

See how our customers are using their Lifetime Mortgage...

Becca's story video

This is Becca's real life story of how a lifetime mortgage helped buy her first home.

Transcript: Becca's story

Becca: My name's Becca. I live here, in our first home with my boyfriend Adam and my grandparents took a lifetime mortgage to help us buy our first home.

On screen text: You should consider other options to borrow money which may be more costs effective.

Becca: We knew we wanted to buy own house but it was a good few years off, if it wouldn't have for Nanny and Grampy's help.

On screen text: A lifetime mortgage will reduce an inheritance. If you give the money away, the recipient may have to pay inheritance tax in the future.

Becca: They discussed it with Mum to make sure that she was happy and comfortable with it and  she was, she was delighted because she would've loved to have been able to help herself, but wasn't able to, so yeah, she was over the moon that they could help.

It was a, a bit of a surprise for us. We'd just bought a bed frame and we didn't have anywhere to store it so Nanny and Grampy had some space in their garage and it was when we went round to take the bed for storage that Nanny and Grampy decided to tell me and Adam that they were going to help us out and..

I think I burst into tears and jumped up and down and probably screamed a little bit (laughter). And then the bed was forgotten, forgotten about, I wasn't worried about that anymore (laughter).

I think the main concern for us was that Nanny and Grampy could do something that they wanted to with the money, whether it was redecorate the house or go on holiday.

We spoke to them about it and they just completely reassured us that it would make them happy to see us in our own home.

The application process was really straightforward for them. I was worried because they aren't online, they don't have emails or anything like that, that it might be a little bit complicated but it was straightforward and there was somebody that was super helpful at the end of the phone for them.

It's made a massive difference to our lives. We've got our own independence.

It would've been probably a good, a good five years before we could've even thought of having our own home. 

We can decorate how we want to. its just, yeah, its made a world of a difference.

My grandparents are gems; they mean the absolute world to me. It's so nice that they're so close to us - they're five minutes round the corner and we go there for Nanny's roast on a Tuesday.

It's just lovely to have them so close and it means the world to us to be able to say thank you.

They can come round; they can see us in our house and see how happy we are and it wouldn't have happened without them.

They're amazing (tearfully).

On screen text: It's a big decision and there are many factors to consider.

That's why you can only get a lifetime mortgage through a specialist adviser.

A lifetime mortgage created a debt on your home.

It's important to know that we charge interest on the total loan plus any interest already charged.

That means the amount you owe grows quickly, and reduces the equity left in the property and the value of any inheritance.

It could also affect any entitlement to State Benefits.

Want to see more of our Lifetime Mortgage customers testimonials?

Prefer to refer?

You can refer your client to The Retirement Lending Advisers (TRLA) and still earn commission. You’ll keep your client relationship and they’ll manage the application through to completion.