Flexible Lifetime Mortgage

Increasingly people are borrowing later in life, sometimes when approaching or already in retirement. There are many reasons for this, perhaps they're hoping to make the most of their retirement years with travel plans, home improvements or lifestyle changes. Or, they may have credit commitments or an interest only mortgage that is due for repayment and need to find a solution.

What is it?

A 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.

Who's it 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 £100,000 or £150,000 for 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. 

How much can be released?

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

PDF file: Flexible Lifetime Mortgage Product Summary Q0052431 PDF size: 286KB  

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.

View - Lifetime mortgage calculator  

Client referral

You can refer your client to The Retirement Lending Advisers (TRLA) and still earn commission. You’ll keep your client relationship and they’ll manage the application through to completion.

Lifetime mortgage FAQs