What is a later life mortgage?
Our later life mortgages are aimed at homeowners aged 55 (or 50 for our Payment Term Lifetime Mortgage) or over and allow you to borrow money based on the value of your home, while continuing to live there. Our later life mortgages include Lifetime Mortgages and a Retirement Interest Only Mortgage.
Lifetime mortgage
A type of equity release.
A lifetime mortgage is a loan secured against your home. There’s no need to make monthly payments, unless you choose a Payment Term Lifetime Mortgage, where you have to pay the interest off monthly for an agreed payment term. As a last resort, your home may be repossessed if you do not keep up with payments on the Payment Term Lifetime Mortgage.
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.
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 | 50+ for our Payment Term Lifetime Mortgage 55+ for our Interest Roll Up and Optional Payment Lifetime Mortgages |
55+ |
| Minimum loan amount | £10,000 | £10,000 |
| Maximum loan amount | Determined by your age and property value. For our Payment Term Lifetime Mortgage an affordability assessment is also required. |
Up to 60% of the value of your 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? | Yes, for our Payment Term Lifetime Mortgage No, for our Interest Roll Up and Optional Payment Lifetime Mortgages |
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? | Yes, for our Payment Term Lifetime Mortgage you have to pay the full interest monthly for your chosen payment term. As a last resort, your home may be repossessed if you do not keep up with payments. No, for our Interest Roll Up and Optional Payment Lifetime Mortgages the interest is charged on the loan amount plus any interest already added, so the amount owed will increase quickly over time. However, with our Optional Payment Lifetime Mortgage 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. |
| Our Lifetime Mortgages | Our Retirement Interest Only Mortgage |
A mortgage may affect means-tested benefits, your tax position and any future inheritance.
Recommend a friend
If you know a friend or family member who is interested in a later life mortgage, we'd love to hear from them.
Discuss
If you have someone in mind then please discuss it with them first.
Contact
When they're ready to talk to us we will ask them for your 8-digit application number. This will ensure that you both qualify for the offer. Don't worry - this will not give them access to any of your personal information.
Enjoy
If they decide to apply for a later life mortgage we will send them, and you, the £250 Love2shop gift card when their mortgage completes as a thank you.
*Terms and conditions
Speak to one of our specialist advisers
Call us for a no-obligation chat about later life mortgages.
0808 163 8828
Monday to Friday 9:00am - 6:00pm
Saturday 9:00am - 1:00pm
We may record and monitor calls.