You may have heard about the ‘Bank of Mum and Dad’, but it’s not just parents who help with the familiar first-time buyers challenges.

When Jim and Gill realised that they could use the value of their own house to help their granddaughter Becca, fulfil her dreams with the deposit for her first home, they were delighted.

It meant that they could see the difference it made to her life for themselves, while continuing to own and live in their much-loved home.

“The hug I got from my granddaughter was well worth it” – Jim.

They spoke to a lifetime mortgage adviser who helped them consider all their options. The adviser explained that taking out a lifetime mortgage, a loan secured against their home, would reduce the value of their inheritance and may affect any entitlement to state benefits.

Their adviser also explained how the total amount owed would grow quickly, because any unpaid interest is charged on the total loan amount on top of any interest already charged. It meant that their granddaughter would have the money when she really needed it*. 

* If you give the money away, the recipient may have to pay inheritance tax in the future.

Watch Jim and Gill explain how a Legal & General Lifetime Mortgage allowed them to help their granddaughter.

Jim and Gill

Jim and Gill video

Releasing the equity in their home, meant they could help their granddaughter with the deposit for her first home.

Transcript: Jim and Gill

Running time:

Gill: My name’s Gill

Jim: I’m Jim

Jim: Gill and I have been married fifty odd years, fifty-two…

Gill: Fifty-two

Jim: Fifty-two years in March

Gill: In a couple of weeks yeah

Jim: Always lived round here ain’t we and our families grown up with us

Jim: The reason that we wanted to get the lifetime mortgage

Jim: Was to help a member of our family which our granddaughter and put their foot on the ladder as they say

Gill: Our granddaughter was you know looking for a house and no way could they save the deposit

Gill: That’s the reason we did it for her.

Jim: We really wanted the granddaughter to have the chance that we had

Jim: It’s a really, really nice feeling to be able to do something…

Jim: And you're using the value of your house, to help your family and that’s what it’s all about

On-screen text: A lifetime mortgage will reduce an inheritance. If you give the money away, the recipient may have to pay inheritance tax in the future.

Jim: With regards to concerns with a lifetime mortgage, we never had it, did we?

Jim: We did ask a few questions obviously because it’s something that you really want to know that you’re doing the right thing

Jim: Well the advisers were excellent weren’t they really

Jim: We knew the questions we wanted to ask and they had the answers to put us right to put us at ease

Jim: When we talked to our daughter about it, which we felt you had to do

Jim: She was all for it straightaway. There was, there was no hesitation at all

Jim: The granddaughter, it was joy wasn’t it.

Jim: It was just as though a weight was lifted off of them you know and then they could suddenly see this was their chance

Gill: She did say to us first of all are you sure you don’t want it or want some of it

Gill: You know but we thought well we’d rather see them happy now

Gill: Than have it when we’re gone and we can’t see it

Jim: The hug I got from my granddaughter was well worth it

On-screen text: It’s a big decision, and there are many factors to consider.

That’s why you can only get a lifetime mortgage through a specialist adviser.

A lifetime mortgage creates a debt on your home.

It’s important to know that we charge interest on the total loan plus any interest already charged.

That means the amount you owe grows quickly and reduces the equity left in the property and the value of any inheritance

It could also affect any entitlement to state benefits.

Becca

Becca video

Jim and Gill’s granddaughter tells her story of how their lifetime mortgage helped buy her first home.

Transcript: Becca

Running time: 3 mins 2 secs

Becca: My name's Becca. I live here, in our first home with my boyfriend Adam and my grandparents took a lifetime mortgage to help us buy our first home.

On-screen text: You should consider other options to borrow money which may be more cost-effective.

Becca: We knew we wanted to buy our own house but it was a good few years off, if it wouldn't have been for Nanny and Grampy's help.

On screen text: A lifetime mortgage will reduce an inheritance. If you give the money away, the recipient may have to pay inheritance tax in the future.

Becca: They discussed it with Mum to make sure that she was happy and comfortable with it and  she was, she was delighted because she would've loved to have been able to help herself, but wasn't able to, so yeah, she was over the moon that they could help.

It was a, a bit of a surprise for us. We'd just bought a bed frame and we didn't have anywhere to store it so Nanny and Grampy had some space in their garage and it was when we went round to take the bed for storage that Nanny and Grampy decided to tell me and Adam that they were going to help us out and...

I think I burst into tears and jumped up and down and probably screamed a little bit (laughter). And then the bed was forgotten, forgotten about, I wasn't worried about that any more (laughter).

I think the main concern for us was that Nanny and Grampy could do something that they wanted to with the money, whether it was redecorate the house or go on holiday.

We spoke to them about it and they just completely reassured us that it would make them happy to see us in our own home.

The application process was really straightforward for them. I was worried because they aren't online, they don't have emails or anything like that, that it might be a little bit complicated but it was really straightforward and there was somebody that was super helpful at the end of the phone for them.

It's made a massive difference to our lives. We've got our own independence.

It would've been probably a good, a good five years before we could've even thought of having our own home. 

We can decorate how we want to. It's just, yeah, it's made a world of a difference.

My grandparents are gems; they mean the absolute world to me. It's so nice that they're so close to us - they're five minutes round the corner and we go there for Nanny's roast on a Tuesday.

It's just lovely to have them so close and it means the world to us to be able to say thank you.

They can come round; they can see us in our house and see how happy we are and it wouldn't have happened without them.

They're amazing (tearfully).

On-screen text: It's a big decision and there are many factors to consider.

That's why you can only get a lifetime mortgage through a specialist adviser.

A lifetime mortgage creates a debt on your home.

It's important to know that we charge interest on the total loan plus any interest already charged.

That means the amount you owe grows quickly, and reduces the equity left in the property and the value of any inheritance.

It could also affect any entitlement to state benefits.

How much could I release?

Our easy to use calculator will give you a quick idea of how much equity you could release from your property.

Additional support

Customer testimonials

Watch our other customer stories to discover how a lifetime mortgage may help you.

Frequently asked questions

Commonly asked questions about lifetime mortgages.