Thanks to you, more clients can embrace the future with confidence
When you set up a lifetime mortgage for your clients, you’re not just helping them release the equity in their home. You’re fulfilling dreams. Answering needs. At Legal & General, we understand the difference your advice can make. That’s why our lifetime mortgages are here to help you do what you do, so your customers can live the lives they want.
When your clients' spent a lifetime creating a happy home, the last thing they want to do is sell it to achieve financial stability or help their family. But many in later life think this is the only way to realise their goals.
Together, we make it possible for your clients to manage their financial challenges in later life, without them having to sell their home. A lifetime mortgage is a loan secured against your client’s home that is usually repaid when your client dies or moves out of their home into long term care.
Our products
Interest Roll Up Lifetime Mortgage
Allows clients aged 55 and over to release equity from their home without having to move or make any monthly payments.
Optional Payment Lifetime Mortgage
Allows clients aged 55 and over to release equity from their home and pay some or all of the monthly interest which will reduce the amount of interest that rolls up.
Payment Term Lifetime Mortgage
Allows clients aged 50 and over to release equity from their home and pay all the interest each month for a chosen payment term after which the interest rolls up. This may reduce the overall cost of the loan.
Key documents
Product comparison
Use our comparison table to help decide which product may best suit your clients needs
Interest Roll Up Lifetime Mortgage | Optional Payment Lifetime Mortgage | Payment Term Lifetime Mortgage | |
|---|---|---|---|
Available at age | 55 | 55 | 50 |
A tax-free lump sum | A minimum loan of £10,000 | A minimum loan of £10,000 | A minimum loan of £10,000 |
Minimum property value | £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties | £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties | £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties. |
No affordability checks | Affordability checks | ||
Take additional amounts through drawdown | |||
Make overpayments or Optional Partial Repayments (OPR's)1 | Can only be made once your client stopped making the monthly interest payments | After the client's payment term has concluded | |
Fixed interest rates | |||
Pay some or all of the monthly interest by Direct Debit | |||
Stop making monthly interest payments at any time | As a last resort, their home may be repossessed if they do not keep up with payments | ||
Compound interest | By paying some or all of the monthly interest, your client can reduce the overall cost of the lifetime mortgage | By paying some or all of the monthly interest, your client can reduce the overall cost of the lifetime mortgage | |
Stay in and continue to own their home | Subject to monthly interest payment being made throughout the term | ||
Transfer mortgage when they move home2 | |||
No Negative Equity Guarantee | The No Negative Equity Guarantee won’t apply to any monthly interest payments they fail to make in full, and on time, throughout the payment term. This includes any interest which has accrued on any monthly interest payments they fail to make. | ||
May affect means-tested state benefits | |||
Inheritance Protection Option (This optional extra allows your client to protect part of the value of their home for inheritance) | |||
1Subject to terms and conditions. 2Subject to the new property meeting our criteria. | |||
Lifetime Mortgage calculator
Our Lifetime Mortgage calculator helps financial advisers to:
- Show your clients how much they may be able to release from their home.
- Demonstrate examples for both taking the maximum available as an initial advance or taking a smaller initial amount where the remainder can be drawn on in the future.
- Illustrate the effect of our inheritance protection option on the total loan amount available.
- Explore the impact of house price inflation.
- Highlight how the interest on their loan increases over time.
- Create a summary of your client's choices and possible results.
The calculator results are examples only. A lifetime mortgage is a loan secured on your client’s home. It will reduce the value of your client's estate but servicing the interest can slow or stop the growth of the loan over time and may affect their entitlement to means tested state benefits.
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