If you're 55 or over, and a home-owner, then our new Optional Payment Lifetime Mortgage could help.

A type of equity release, it enables you to access the money tied up in your home as tax-free cash that you could use to pay off an outstanding interest-only mortgage and any early repayment charges.

With this new solution, you have a choice:

It's a loan secured against your home that lets you choose to pay some, or all, of the monthly interest, just as you would with a residential interest-only mortgage. If you choose to pay the interest in full the amount you owe will not increase and you can leave the remaining value of your home, plus any growth in its value, to your family.

Could I qualify?

If you answer 'yes' to all of the following questions, a Legal & General Lifetime Mortgage 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 £100,000 or over (£150,000 for ex-council, ex-housing association or ex-Ministry of Defence properties)?

You have control over the payments you make

You can choose to stop making payments at any time. If you do, the unpaid interest will be added each month to the amount you owe.

This means that the interest is charged on the loan amount plus any interest already added, so the amount you owe may increase quickly over time, reducing the equity left in your home, and the value of any inheritance.

Could making monthly interest payments help you leave an inheritance?

Clive (65) and Sandy (63) have an outstanding interest-only mortgage, and would also like to renovate their kitchen.

Their situation:

  • Property value: £250,000
  • Amount borrowed: £50,000
  • Interest rate fixed for the life of the mortgage: 3.72% AER
    (based on our Optional Payment Lifetime Mortgage as at 25/06/2018)
  • Monthly Interest Amount: £152.50
  • Estimated life expectancy: 24 years

Clive and Sandy paid £152.50 each month for 24 years.

After 24 years:

The value of their property was £250,000
The final loan amount to be repaid was £50,000
They could leave £200,000 to their beneficiaries

This is for illustrative purposes only.

With this example, we have not included the effect of house prices going up or down.

What else do I need to know?

If you’re used to making monthly payments on an interest-only mortgage, you might be comfortable to make monthly payments with our Optional Payment Lifetime Mortgage. But unlike a residential mortgage, there are no affordability assessments, and the interest rates are fixed, so you have the certainty of knowing exactly how much you’ll be paying each month. 

If you do take smaller amounts later, a different interest rate may apply to each amount you take, depending on the interest rates available at the time.

Our Lifetime Mortgages are 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. Of course, any money left over would be available to you or your beneficiaries.

There may be cheaper ways for you to borrow money.

Find out more

How much could you release?

Try our calculator now to see how your home could help you.

More information

Our product page includes more details about our Lifetime Mortgages, their risks and benefits. 

Speak to an adviser

You can only take out a lifetime mortgage through a qualified lifetime mortgage adviser, who will be able to answer your questions, check your eligibility, review your other options and, when you’re ready, submit your application. If you don't have your own adviser, you could use the Retirement Lending Advisers (TRLA) to find out more and take out our Lifetime Mortgage.

TRLA can only advise on our products and won't charge you an advice fee.

Call TRLA on 0808 149 2146. Calls are free.

Monday to Friday, 9.00am to 5.00pm. TRLA may record and monitor calls.