Busting the myths of lifetime mortgages

Helping you advise with clarity.

Our approach to retirement has changed; we're enjoying longer life expectancies and our expectations of this time has shifted considerably. It’s no wonder more people are considering property wealth as a tool to fund their retirement. After all, there could be more equity in their homes than cash in their pension pots. 

While your clients may find the thought of releasing money from a home they’ve worked hard to own daunting, it doesn’t have to be. A lifetime mortgage is a form of equity release that gives your clients the flexibility and choice to access cash in later life. Nevertheless, a lifetime mortgage is a big financial decision and myths still exist about how they work. 

To understand the hesitations people may have, we asked a number of 55 to 75 year olds about some common misconceptions.

Myths and facts

  • Myth: “I won’t own my own home anymore.”
  • Fact: Having a lifetime mortgage doesn't mean your client is selling their home to the lender. It’s a loan secured against their home that will be repaid when the last remaining borrower dies or moves out of the home and into long term care.

     

  • Myth: “I’ll end up paying more than the value of my own home – my children will inherit my debt.”
  • Fact: Lifetime mortgages are protected by the Equity Release Council’s ‘no negative equity’ guarantee; your client, or their estate, will never owe more than the value of their own home. This means they'll never have to pay back more than the amount their property is sold for. Subject to terms and conditions.

     

Factsheet

Our useful factsheet debunks some of the most common misunderstandings in equity release.

Download it so you can stay informed and help your clients make sound financial decisions.

White label leaflet

Give your own clients the confidence in a lifetime mortgage by customising this myth busting leaflet with your own details.

The leaflet should be printed along the short edge. This can be changed in ‘properties’ after selecting ‘print’.

Speak to our team

Still a little confused about some of myths around lifetime mortgages? We can help demystify some of the misconceptions around the market.

Leave a message and we can arrange a convenient time to talk.

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When using any white label templates

Please note that these promotional materials are only suggested templates to support your marketing activities. We recommend that any promotional materials are checked by your Compliance team.

The content is your responsibility and you must ensure that all legal and regulatory requirements are considered before sending to your clients or prospective clients.

No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information contained in these materials, or any other written or oral information made available in connection with these materials.

Nothing in this Information constitutes financial and/or investment advice.

Getting started

Helpful resources and tools to help new advisers get started in the lifetime mortgage market.

Events

Register for our CPD-accredited events and workshops to help understand the changing face of retirement.

Marketing templates

Marketing can be tricky for busy advisers. We’ve created useful templates for posters, letters and emails.