Welcome to Legal & General
Whether you're looking to pay off an existing mortgage, or to release some equity from your home to spend on yourself, your home or your family. One of our later life mortgages could help.
What is a later life mortgage?
A later life mortgage is a mortgage aimed at homeowners aged 55 or over. It allows you to borrow money based on the value of your home, while continuing to live there. Our later life mortgages include a range of Lifetime Mortgages and a Retirement Interest Only Mortgage.
Lifetime Mortgages
A type of equity release
A lifetime mortgage is a loan secured against your home. There's no need to make monthly payments. The amount borrowed and the added interest aren't usually repaid until you die or move out of the home into long-term care. However, there may be cheaper ways to borrow money.
If you're looking to release some money from your home to increase your income in retirement, this could be a good option for you.
Retirement Interest Only Mortgage
A type of residential mortgage
A Retirement Interest Only Mortgage is a loan secured against your home. You have to pay the interest off monthly, but the full amount of the loan isn't usually repaid until you die or move out of the home into long-term care. As a last resort, your home may be repossessed if you do not keep up repayments.
If you're looking to release some money from your home to pay off an existing mortgage, this is one of the options available to you.
Compare our later life mortgages
Our Lifetime Mortgages and Retirement Interest Only Mortgage may appear similar, but it's important to understand the differences between each product. We've pulled out some of the key points below.
Our Lifetime Mortgages | Our Retirement Interest Only Mortgage | |
|---|---|---|
Age | 55+ | 55+ |
Minimum loan amount | £10,000 | £10,000 |
Maximum loan amount | Determined by your age and property value. | Up to 60% of the value of your home, subject to an affordability assessment. |
Is there an affordability assessment? | No | Yes |
Is the loan secured against my home? | Yes | Yes |
When do I have to repay the full amount of the loan? | The loan is usually repaid when you die or move out of your home into long-term care. | The loan is usually repaid when you die or move out of your home into long-term care. |
Do I have to pay interest 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, you can choose to pay off some or all of the monthly interest to prevent this. | Yes - the interest due is payable in full by you each month. As a last resort, your home may be repossessed if you fail to keep up repayments. |
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. |
A mortgage may affect means-tested benefits, your tax position and any future inheritance. | ||
Real life stories
See how some of our customers have used lifetime mortgages to make a difference for themselves and their families.
