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Adviser Centre

Frequently Asked Questions.

We’ve put together a list of frequently asked questions about lifetime mortgages.

Product FAQs

How do I get involved in the lifetime mortgage market?

There are different ways of getting more involved with lifetime mortgages - from advising directly to referring clients. Find out more: Starting to advise on lifetime mortgages Q0055547 (PDF: 173KB)  

how can I start to advise on lifetime mortgages?

To start advising on lifetime mortgages, you need to have the appropriate qualifications. Find out more: Starting to advise on lifetime mortgages Q0055547 (PDF: 173KB)  

What qualifications do I need to be able to advise on lifetime mortgages?

You can find out more about qualifying to advise on lifetime mortgages, please visit the equity release council site.

What if I were to refer a client to a specialist lifetime mortgage ADVISER?

You can refer your client to a Specialist Lifetime Mortgage Adviser.

Will my client still own their home?

Yes. With our Lifetime Mortgages, the property stays in your client’s name and the loan is secured against their home. Our Lifetime Mortgage are designed to be repaid when the last remaining owner dies or moves out of their home into long-term care.

Will my client have to make monthly payments?

No. With our Lifetime Mortgage your client won’t have to make monthly payments. Instead the interest is added to the amount owed each month. We charge interest on the loan plus any interest already added, which means the amount your client owes will grow quickly. The lifetime mortgage is usually repaid from the sale of your client’s home when they or the remaining applicant (if the mortgage is in joint names) dies or moves out of their home into long-term care.  

However, your client could choose to make Optional Partial Repayments subject to our Terms and Conditions.

What is Inheritance Protection?

Inheritance Protection can help secure a proportion of the net sale proceeds of your client’s home for the beneficiaries of their estate when they die. If leaving an inheritance is important to your client, they could select this option. They will need to decide on the percentage that they would like to protect (the Protected Percentage) when they apply for the lifetime mortgage.

Inheritance Protection cannot be added or the amount increased after completion of their lifetime mortgage.

If they decide to opt for Inheritance Protection the amount that can be borrowed will reduce proportionately.

Will a lifetime mortgage affect any inheritance?

Yes. Interest is charged both on the original loan amount and the interest that has already been added. This means the amount your client owes quickly increases over time, reducing the equity left in their home and the value of any inheritance.

All of our Lifetime Mortgages offer an option that can be chosen at the outset to protect a percentage of the value of your client’s home for their beneficiaries. If your client includes the Inheritance Protection Option it will reduce the total amount your client can borrow.

In the future could you make my client leave their home?

With our Lifetime Mortgages, your client can stay in their home until they die or move into long-term care, as long as they comply with the Lifetime Mortgages Terms and Conditions Q0054072 (PDF: 97KB)  Failure to comply with these could result in the forced sale of their property and the loss of the right to Inheritance Protection, if this has been chosen.

Can the lifetime mortgage be repaid early?

Yes. Our Optional Partial Repayment feature allows your client to reduce the amount they owe by making partial repayments without any Early Repayment Charge. This will reduce the total amount of interest that will accumulate on their lifetime mortgage.

Your client may have to pay an Early Repayment Charge if they decide to repay more than allowed under Optional Partial Repayment feature, or decide to repay all of their Lifetime Mortgage. The Early Repayment Charge could be substantial.

The Early Repayment Charge only applies until the youngest borrower reaches age 88 or their tenth birthday following the date of the Offer of Loan, whichever occurs later.

Why do you apply an Early Repayment Charge?

The Early Repayment Charge recovers costs that we or our funding providers incur when setting up the lifetime mortgage. These costs include transactions costs incurred in reinvesting the money, or costs due to the changes in long term interest rates.

How do you calculate an Early Repayment Charge?

The way we calculate an Early Repayment Charge is quite detailed. You can find more information on when an Early Repayment Charge can apply and how we calculate the charge in our All you need to know Q54380 (PDF: 3741KB) .

How is interest calculated?

Our Lifetime Mortgages have a fixed rate for life, which means it will not change for the duration of your clients loan. Interest is calculated daily and added to the loan each month. This means the amount owed grows quickly, reducing the equity in your client's home and the value of any inheritance. You should consider if there are cheaper ways for your client to borrow money.

How long does it take to get the money?

It usually takes about eight to nine weeks from the time you complete the application with your client to the time they’ll receive their money.

What is the No Negative Equity Guarantee?

Our No Negative Equity Guarantee means you or your beneficiaries will never have to pay back more than the amount your property is sold for. This is provided it is sold for the best price reasonably obtainable and you have met the Terms and Conditions of your lifetime mortgage.

PROCESS FAQS

How do I register with Legal & General Home Finance?

You can register to use our online portal so you can generate Key Facts Illustrations and apply for a client’s lifetime mortgage any time, day or night.

Please allow 48 hours for registration to be completed.

Please note, we will request written or emailed confirmation from your company to verify your role with them and we will keep you informed of the progress.

How do I produce a Key Facts Illustration (KFI)?

You can create a KFI quickly and easily using our online portal.

How do I submit a non-standard property application?

In these situations we will need some additional information to assess your client’s application. Please complete our Pre Application Query form.

What commission will I be paid?

The level of commission paid will depend on what you agree with your client and also whether you are a member of a mortgage club. If you’re a member of a mortgage club, please refer to them directly about commission paid.

For any subsequent drawdowns a client makes we will pay 1% commission to you.

What is the postal address?

Contact Us

Legal & General Home Finance, PO Box 17225, Solihull, B91 9US.

I have a general enquiry and haven’t submitted an application. Who do I contact?

Contact Us.

If you have a question before an application is made, please complete and submit our    Pre Application Query form.

I have an enquiry regarding a current application that has not yet been offered. Who do I contact?

Contact Us.

If you have a question about an application that has not yet had an offer made, please email us at underwriting@landghomefinance.com. We will respond within 48 hours. 

If you're contacting us by email remember not to send any personal, financial or banking information because email is not a secure method of communication.

I have a query regarding the completion of my case. Who do I contact?

If you have a case that’s received an offer from us and that your client has accepted, please email us at underwriting@landghomefinance.com. We will respond within 48 hours.

If you're contacting us by email remember not to send any personal, financial or banking information because email is not a secure method of communication.

I have a query with a completed case, who do I contact?

Contact Us.

If your case has completed and you have a question, please email customerserviceteam@landghomefinance.com. We will respond within 48 hours.

If you're contacting us by email remember not to send any personal, financial or banking information because email is not a secure method of communication.

Which solicitors do you accept?

We will work with any solicitor, provided they're a member of, and can be found on, the Law Society website.

Which surveyors do you use?

We will use Legal & General Surveying Service. They use a panel of independent surveyors local to the property on the application to ensure an accurate and current market appraisal.

Would this property be suitable?

To establish if your client’s property is considered standard please view our Property Suitability Criteria Q0052421 (PDF: 34KB)  .

If your client’s property is not considered standard, please complete and submit our      Pre Application Query form.

Would this applicant be suitable?

To establish if your client is suitable, please view our  Applicant / Occupant Suitability Criteria Q0052420 (PDF: 30KB)

If your clients does not meet this criteria, please complete and submit our                      Pre Application Query form.

What are the current interest rates for each of your products?

You can find a summary of the rates and loan to values in our product summaries:

Flexible Lifetime Mortgage:

Flexible Lifetime Mortgages Product Summary Q52431 (PDF: 242KB)  

Premier Flexible Lifetime Mortgage:

Premier Flexible Lifetime Mortgages Product Summary Q53439 (PDF: 123KB)  

Once an offer has been made, what are the next steps?

Once an offer has been made, a copy of the application will be posted directly to your client. You'll be sent an email to confirm the up to date status of the case.

We’ll also email our solicitors, so that within 24 hours they can issue a copy of the offer pack to your client’s solicitor.

For full details about our Lifetime Mortgages, please see our All you need to know Q54380 (PDF: 3741KB)  .