Questions and answers

This product is designed for customers who have a need for later life lending whilst still in some form of employment and/or are semi-retired and can pass affordability assessments but perhaps they're unable to pass them post full-retirement.

It's suitable for people aged 50 or over who are able to and want to make full monthly interest payments until an agreed fixed date pre full-retirement.  

With our Payment Term Lifetime Mortgage, customers commit to monthly full interest payments until they either retire or reach the age of 75, whichever is sooner. As a last resort, their home may be repossessed if they do not keep up with payments.

Once they reach the end of their payment term, the interest of the mortgage will roll-up as with other Lifetime mortgages.

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

Payment Term Lifetime Mortgage Product Summary PDF size: 115KB

Yes, an affordability assessment is required to establish whether customers can afford to pay the monthly interest payments

By making monthly interest payments, Legal & General Home Finance is able to offer customers a higher LTV than with other Later Life products, as the interest won’t roll up until the end of the payment term. However, as a last resort, their home may be repossessed if they do not keep up with payments.

Yes, when customers apply, they must tell their adviser about their retirement plans and whether they would like to commit to full monthly interest payments until that date or sooner. However, Legal & General Home Finance will assess whether the payment term requested is feasible as part of the underwriting checks.

Yes, they can apply for this product and both their incomes will be taken into consideration for affordability purposes.

Dependent on the customers’ employment status, we would require: at least three months of bank statements, the latest three payslips for all income types (excluding self-employed but including pension income), a copy of the customers contract if on a fixed term or contractor role. Additional documentation may be required for certain types of employment, pension income and/or investment income.

Standard Lifetime mortgage conveyancing and ILA requirements apply for PTLM.

No drawdown facility is available for this product, however customers can request additional borrowing 12 months after completion. Additional borrowing isn’t guaranteed and is subject to our lending criteria at the time they apply. Your client may also be subject to an affordability assessment.

Yes, credit searches will be done as part of the underwriting process.

Yes, however the NNEG doesn’t extend to arrears and any interest charged on arrears.

In line with all of our Lifetime mortgages, PTLM does offer a compassionate repayment feature.

Yes, as long as the customers contract and income last for the duration of the payment term.

There is no maximum LTI applied for this product.

Optional Partial Repayments are not allowed during the payment term, however they are allowed with no early repayment charges once they've stopped making contractual monthly interest only payments, provided it's within the limits and terms that apply.

In line with our Optional Payment Lifetime Mortgage, the customer will not be able to change the Direct Debit once the mortgage completes.

The monthly payments are contractually obligated and are set out at the application stage.

As the monthly payment are calculated on the loan amount, this figure can not be amended. If the customer is struggling to make these payments, please refer them to collections. As a last resort, their home may be repossessed if they do not keep up with payments.