Advanced Sourcing Tips for Lifetime Mortgages

At Legal & General, we know that sourcing a lifetime mortgage is about matching your client’s individual needs, future plans, and preferences for flexibility with the most suitable product features. Here are some straightforward, practical tips to support you in recommending the right solution for each client.  
 
Smart Inputs = Better Results  
When reviewing available options, it’s important to look beyond the interest rate alone. Features such as voluntary repayments, drawdown options, inheritance protection, and the type of early repayment charges (ERCs) can all have a significant impact on your client’s experience and long-term benefit.  

• Use filters wisely – Sourcing systems are helpful, but over-filtering can mean you miss out on products that may be a better fit overall. 
• Consider the bigger picture – Sometimes, product features that support flexibility or offer added value for your client’s situation may be preferable, even if the rate is not the primary focus. 
• Tailor the advance and drawdown – Matching the initial advance and drawdown facility to your client’s plans can help secure a product that best matches their objectives at a tailored rate. Don’t forget to use ‘Age Next Birthday’ (ANB) if either client is approaching a birthday, as this may open up more options. 

Understanding Early Repayment Charges  
There’s no one-size-fits-all answer when it comes to ERCs. The best choice will depend on your client’s individual plans: 

If your client expects to keep their mortgage for life, and only repay on death or entering care, a variable ERC could suit their needs, so don’t dismiss these products automatically. 
Check how ERCs are calculated – is it based on the original loan or the outstanding balance? The inclusion of rolled-up interest can affect the total repayment cost. 
For clients who might repay early – perhaps from a maturing investment, a property sale or a pension lump sum – looking for products with a shorter ERC period may be more suitable.  
Use your sourcing tools to model different scenarios and always review the provider’s Key Facts Illustrations (KFIs) to get a clear picture of the cost of early repayment. 
Consider drawdown facilities carefully  
Clients who may want to access additional funds in the future could benefit from a product with a drawdown facility. This approach is generally more straightforward, quicker, and cost-effective than applying for a further advance, offering flexibility for evolving client needs.  
 
Double check property and client criteria 
Sourcing systems don’t always flag restrictions on certain property types – flats, annexes, or properties with unusual construction, for example. Always check the lender’s criteria or contact them directly before proceeding.  
 
It’s also important to estimate property values accurately, as this can affect both product eligibility and available features. Tools like Rightmove can help you arrive at a realistic valuation. For useful advice, watch our short video, “Estimating Property Values”. *  
 
We’re here to help  
Got a question or need support on a particular case? Our team is always ready to help you find the right solution for your client – just get in touch.  
 
Useful Links  
Over 50s Mortgages | Adviser | Legal & General  
Lending Criteria | Over 50s Mortgages | Legal & General  
Video support hub | Lending criteria | Legal & General *  
Your guide to Fixed Early Repayment Charges | Legal & General  
Your guide to Variable Early Repayment Charges | Legal & General  
 
*Take a look at our two-minute video for practical advice on estimating property values.