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Later life mortgages

Whether you're looking to pay off an existing mortgage, or to release some equity from your home to spend on yourself, your home or your family, one of our later life mortgages could help

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.

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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.

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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.

"We started to look at lifetime mortgages as we realised there was real advantage in being able to help our children. We have a lot of money tied up in the house and it was a way of releasing that money for better lives for ourselves, our children and our grandchildren." - John and June, Oxfordshire

John with grandchild

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.

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.

A mortgage may affect means-tested benefits, your tax position and any future inheritance.

Discover which later life mortgage might suit you

Choosing the right later life mortgage for you can be difficult. To see which products could be right for you, just answer a few simple questions and we’ll point you towards the product that may be appropriate for your needs.

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Get later life mortgage advice from our specialists today

Start getting answers to your questions about later life mortgages in less than 60 seconds, or request a call back from our team.

0808 296 1040

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