Is a lifetime mortgage right for you?

A lifetime mortgage isn't right for everyone. Here are some pros and cons to consider.

  • Pro.

    Tax-free cash

    You can take a lump sum in one go or a series of smaller lump sums when it suits you. You can also choose to take a monthly income if you prefer

  • Pro.

    Spend it how you want

    You can use it for home improvements, helping children buy their first property or to top up your monthly income. It's up to you

  • Pro.

    Nothing to repay

    Unless you choose otherwise, there's nothing to repay until you die or move permanently into long-term care

  • Pro.

    Flexible repayments

    If you prefer, there's an option to repay some or all of the interest. You can also choose to repay part of the original loan

  • Pro.

    Stay in your home

    You don't need to downsize and can stay in your home until you die or move permanently into long-term care

  • Pro.

    You can still move house

    So long as the new property is acceptable to us - we don't lend against properties with thatched roofs, for example - you can still move house

  • Pro.

    Inheritance protection

    Part of the value of your home can be passed on if you choose our Inheritance Protection option

  • Pro.

    No negative equity guarantee

    Whatever happens you'll never repay more than the value of your home when it is sold - even if that's less than the amount owing. Subject to terms and conditions

  • Con.

    Reduced inheritance

    Even with our Inheritance Protection option, taking a lifetime mortgage is likely to reduce how much you can leave as an inheritance

  • Con.

    The interest can build up quickly

    If you choose not to repay anything until you die or move permanently into long-term care, the interest can rapidly build up over time

  • Con.

    Early Repayment Charge

    If you choose to repay all or a significant part of the loan early, there may be an Early Repayment Charge

  • Con.

    Means tested benefits

    If you're receiving certain means tested benefits, taking a lifetime mortgage could impact your entitlement to these benefits

  • Con.

    Higher interest rates

    Usually the interest rates for a lifetime mortgage are higher than the rates charged for a traditional mortgage

  • Con.

    Less freedom to move house

    If you have no mortgage, you can move to any type of property. With a lifetime mortgage, the new home has to be acceptable to the lender

Can’t make up your mind?

If we can provide more information to help you decide whether a lifetime mortgage could be right for you, give us a call.

0808 301 70440808 301 7044

Monday to Sunday 8:30am - 8:00pm
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