Who is a lifetime mortgage for?

A lifetime mortgage doesn’t just help your client, it can help the whole family. Whether it’s helping another family member get on the property ladder, or just providing a little extra cash to enjoy more time with the grandkids.

A lifetime mortgage is a type of equity release, it's a loan secured against your client's home.

To help you demonstrate the value of equity release to your clients, we’ve created this simple guide to show how a lifetime mortgage can benefit them and their family.

First-time buyers

First-time buyers may need a little extra help from the Bank of Mum and Dad (or Grandma and Grandad!) to take their first step onto the property ladder. 

How can a lifetime mortgage help?

A lifetime mortgage could help your clients to provide their family with a ‘living inheritance’.

The equity released could help family members pull together a deposit or secure lower mortgage payments. The money could also help with some of the initial costs – like furnishing their home, solicitor fees and home insurance payments.

First time buyers
Second home seekers

Second-home seekers

In their 30s and 40s, many clients will be looking to take the next step up the property ladder. They may have a growing family, need dedicated office space or want somewhere with a garden. 

How can a lifetime mortgage help?

A lifetime mortgage could help grandparents release equity from their property. This cash could help their adult children take the step to secure their dream home.

Resilient retiree

Retirement looks very different today than it did twenty years ago. This resilient group have likely gone through a number of major life changes – from children flying the nest, divorce and second families, portfolio careers and a whole host of other scenarios. Whatever the situation, many will be reassessing their finances and looking at how they can enjoy a more colourful retirement.

How can a lifetime mortgage help?

By unlocking the equity in their home, clients can use cash to take control of their retirement – pay off their mortgage and outstanding debts to provide themselves with greater financial security.

Resilient retiree
Settled senior

Settled senior

They’ve worked hard and their mortgage has most likely been paid off - now this group is looking to live more comfortably, enjoy time with loved ones and support the future generations of their family in whatever way they can.

How can a lifetime mortgage help?

A lifetime mortgage could help shape a more colourful retirement, be it lunch with good friends, or a day with the grandkids. Clients can use their money to adapt their property for mobility or in-home care, and make their lives that little bit easier. They could even gift a sum to their family members such as children to help them get on the ladder, allowing the mortgage cycle to continue.

There may be cheaper ways to borrow money.

Interest is charged on the total loan amount plus any interest already added.

The amount borrowed and the added interest isn't usually repaid until your client dies or moves out of their home into long-term care.

The recipient of a gift from a lifetime mortgage may have to pay Inheritance Tax in the future.

A lifetime mortgage will reduce an inheritance.

Still not sure where to start?

We’ve outlined some simple steps to support new advisers and mortgage brokers when making the decision to sell lifetime mortgages.