A Lifetime Mortgage is a form of equity release. The amount borrowed plus interest doesn’t need to be repaid until you die or move into long-term care.
A Retirement Interest-Only Mortgage is a type of residential mortgage, the amount borrowed doesn’t need to be repaid until you die or move into long-term care.
|Our Lifetime Mortgages||Our Retirement Interest Only Mortgage|
|Minimum loan amount||£10,000||£10,000|
|Determined by your customer's age and property value||Up to 60% of the value of your customer's home, subject to an affordability assessment|
|Minimum property value considered||£70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties.||£70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties.|
|Is there an affordability assessment?||No||Yes|
|Is the loan secured against the customer's home?||Yes||Yes|
|When is the full amount of the loan repaid?||The loan is usually repaid when your customer dies or moves out into long-term care.||The loan is usually repaid when your customer dies or moves into long-term care.|
|Is interest paid every month?||No - interest is charged on the loan amount plus any interest already added, so the amount owed will increase quickly over time. However, they can choose to pay off some or all of the monthly interest to prevent this.||Yes - the interest due is payable in full each month.|
|Is the interest rate fixed?||Yes. The interest rate is fixed for the life of the loan.||Yes. The interest rate is fixed for the life of the loan.|
|Actions||Our Lifetime Mortgages||Our Retirement Interest Only Mortgage|
A mortgage may affect means-tested benefits, tax position and any future inheritance.
Equity release calculator
This calculator helps you see how much equity your customer could release with a lifetime mortgage, a loan secured against their home. You can skip the 'Just one more step' option.
The information here is for training purposes only and this URL should not be shared with anyone outside of Co-operative or Legal & General.
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