Nigel and Jenny had an interest-only mortgage, but as the end of their loan term approached, they realised they would have an outstanding amount left to pay off.
With just a few months to resolve the issue, they were worried and started looking for possible solutions. They considered downsizing, but that would have meant selling some of their treasured possessions. And relocating would mean leaving their friends, favourite restaurants and the countryside where they love to walk their dog. They urgently needed a way to pay off their remaining mortgage that meant they could stay in the home that held so many memories for them.
What if you could pay off your interest-only mortgage and stay in the home you love?
With a lifetime mortgage, you can release equity from your property to pay off your outstanding balance and any early repayment charges that may apply.
With a Legal & General Lifetime Mortgage, the property remains in your name. Unless you choose to repay it early, a lifetime mortgage is usually repaid from the sale of your home when the last surviving borrower dies or moves out of their home and into long-term care.
Any unpaid interest is added each month to the amount you owe and can increase quickly over time. Interest is charged on the loan plus any interest already added. A lifetime mortgage will reduce an inheritance and the equity left in your home.
What is a lifetime mortgage?
It's a type of equity release, which secures a loan against your home. It lets you release some of the money tied up in your home, without having to move, as tax-free cash.
You can choose to take the maximum money available to you in one go, or in smaller amounts as and when you need them.
If you take smaller amounts later, a different interest rate may apply to each amount you take, depending on the interest rates available at the time.
There may be cheaper ways to borrow money.
Find out more about our Lifetime Mortgages, how they work and what they can be used for.
Could I qualify?
If you answer yes to all of the following questions, our Legal & General Lifetime Mortgages could be right for you.
- Are you aged 55 or over?
- Are you living in (or buying) your own home with a small or no mortgage?
- Do you want to borrow a minimum of £10,000?
- Is your property made of standard construction, in a good state of repair, free of any tenancy restrictions and in England, Wales or mainland Scotland?
- Is your home valued at £100,000 or over (£150,000 for ex-council, ex-housing association or ex-Ministry of Defence properties)?
Watch Nigel and Jenny as they explain how a Legal & General Lifetime Mortgage gave them the peace of mind they'd been searching for.
Transcript: Nigel and Jenny clearing interest-only mortgage
Running time: 2 mins 55 secs
On screen text: Discovering a lifetime mortgage with Nigel and Jenny.
Nigel: I’ve lived in this beautiful Cottage with my wife Jenny for close on twenty years now. Jenny has her workroom at one end and I have my office at the other where I sit and write scripts and books and…produce films from.
We hadn’t done an awful lot to sort our future out, we had an interest only mortgage and there was a large amount of money owing. As for savings we didn’t have any.
Jenny: We wanted more than anything to be allowed to stay here without any worry.
Nigel: I first read about the lifetime mortgages in a newspaper and I thought hello!...
On screen text: A lifetime mortgage is a loan secured against your home. Unlike a traditional mortgage, you don't have to make any monthly payments.
On screen text: You can only get a lifetime mortgage through a specialist adviser.
Nigel: ...this looks interesting, so I went online and did a bit more research…and contacted an adviser who could take us through the process and link us up with Legal & General.
There was a concern which was how would our children feel about this. They were immediately on our side…
On screen text: A lifetime mortgage will reduce an inheritance. You should consider other ways to borrow money which might be more cost effective.
Nigel: … they felt that that would be ideal, a weight off their minds, a weight off our mind, and they said “go for it Dad, go for it Mum”.
Everyone was very supportive, knowledgeable, clear and took us through the process in a nice, easy smooth way.
Jenny: And since our children are so happy about it, it feels that we don’t have to worry about anything anymore.
On screen text: The property must be maintained in good repair and condition. The loan is repaid from the sale of your home when the last surviving applicant dies or moves into long term care.
Nigel: Used to wake up in the morning with this terrible gloom thinking where am I going to put my books? Where am I go to put my files? What about all this lovely furniture? It was…I couldn’t deal with it, it really was doing me in.
Jenny: Anyway, what he does now...ehh, when he gets worried or anything like that he reads the letter from Legal & General...(ehh your firm)
Nigel: I do I keep it in my desk and I get up in the morning and I read the first line of the three paragraphs and go Wow, Wooow, this is so… wonderful!
Jenny: Since we have the lifetime mortgage we feel relaxed. We are not worried anymore, we feel safe.
Nigel: It’s a lovely thing.
On screen text: A lifetime mortgage, a loan secured against your home, lets you take money from the value of your home without having to move.
Before you can take out a lifetime mortgage, you’ll need to speak to an adviser to discuss your options and the implications for you.
For example, we charge interest on the loan plus any interest already owing.
This means the amount owed grows quickly, leaving you with less equity in your property and reducing any inheritance.
It could also affect any state benefits you receive.
How much could I release?
Watch our other customer stories to discover how a lifetime mortgage may help you.
Frequently asked questions
Commonly asked questions about lifetime mortgages.