What is a Flexible Lifetime Mortgage?

Our Flexible Lifetime Mortgage is a type of equity release that allows your client to unlock some of the equity from their home without having to move. It's a loan secured against their home to give them a cash lump sum or smaller amounts, tax-free, that they can take as and when they need.

There are no monthly payments with our Flexible Lifetime Mortgage. Instead the interest is added to the amount they owe each month. This means we charge interest on the loan plus any interest already added. The amount is usually repaid from the sale of their home when they or the remaining applicant (if the mortgage is in joint names) dies or moves out of their home into long term care.

 

Our Flexible Lifetime Mortgage is for:

  • Clients aged 55 or over,
  • Living in or buying their own home, with a small or no mortgage,
  • Living in England, Wales or mainland Scotland, and own a home worth a minimum of £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties.
  • Client's who have discussed the benefits and risks of a lifetime mortgage with their family and friends and they know: 
    • There may be cheaper ways to borrow money.
    • There may be an impact on any inheritance
    • Repaying the loan early is likely to cause a significant early repayment charge.
    • Releasing more from the full loan amount later may cost more or less depending on the current interest rate at the time.

How can it help?

Could help your clients achieve their retirement ambitions. Some clients may use a lifetime mortgage for:

  • Repaying outstanding interest-only mortgages.
  • Home and garden improvements.
  • Helping family - children and grandchildren.
  • Enjoying retirement. 

Our Flexible Lifetime Mortgage is for clients who want to borrow at least £10,000.

Flexible Lifetime Mortgage Product Summary PDF size: 108KB

Premier Flexible Lifetime Mortgage Product Summary PDF size: 108KB

You can use our lifetime mortgage calculator with your client to see how much they can release and show them the impact of interest and house price growth.

Property eligibility

To apply for one of our Flexible Lifetime Mortgages your client needs to meet our minimum eligibility criteria. Your client must be able to answer yes to the following questions:

  • Is their property made of traditional masonry construction, in a good state of repair, free of any tenancy restrictions, and is it in England, Wales or mainland Scotland?
  • Is their home valued at minimum of £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties. 

Below is a list of some of the main reasons why the client’s application might have been declined based on their property:

  • The lease is too short yet the purpose of loan is to pay for a lease extension and this wasn't selected.
  • Acreage of the property exceeds 10 acres. Anything between 10-15 acres will be considered as a refer basis and above 15 acres will be declined.
  • Their property is a studio or bedsit.
  • Their flat is part freehold.
  • Their property has agricultural ties.

If your client has an age restricted property please refer to new business enquires team.

For more details please see the Later Life Mortgage Suitability Criteria PDFsize: 121KB

Applicant criteria

To apply for one of our Flexible Lifetime Mortgage your client needs to meet our minimum eligibility criteria. Your client must be able to answer yes to the following questions:

  • Are they aged 55 or over?
  • Are they living in (or buying) their home and have either a small or no mortgage?
  • Do they want to borrow a minimum of £10,000?

Below is a list of some of the main reasons why your client's application might have been declined based on our applicant criteria:

  • Submitted a sole application but a partner was listed as an additional occupant (resident for over 17 years).
  • Undischarged bankruptcy.
  • Applicant doesn't have indefinite rights to reside in the property.
  • The applicant has Charging Orders registered against them.
  • Property is held in Trust.

For more details please see the Later Life Mortgage Suitability Criteria PDFsize: 121KB

Lifetime Mortgage calculator

  

Quoting and online services

Available Portals

Quotes for our Lifetime Mortgages products are available through the listed portals.

Air Sourcing

Advise Wise

IRESS

Assureweb

To do business with us, you need to register for our Later Life Mortgage Portal.

Register now

24/7 Apply/Request reoffers

To generate a KFI, make a new application, amend an existing one or request a reoffer.

 

Submitting non standard properties

In these situations we'll need some more information to assess your client's application.

Large loan request

If the total borrowing requirement is over £750,000 or the property value is over £2million, you will need to make a large loan enquiry. 

Energy Saver Cashback offer

We’ll provide 10% cashback on the total cost of home energy efficiency improvements, up to £1,000 on an initial advance and up to £200 on a drawdown.

Find out more

 

 

FAQs

Events

At Legal & General, your development matters to us. We offer a series of CPD accredited events and workshops that support you in understanding the changing face of retirement.

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