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Lifetime mortgage
Release tax-free cash from your home with a lifetime mortgage
What is a lifetime mortgage?
A lifetime mortgage is a type of equity release, a loan secured against your home that allows you to release tax-free cash without needing to move out.
Our Lifetime Mortgages are available to homeowners aged 55 (or 50 for our Payment Term Lifetime Mortgage) or over. You may be able to take the money as a lump sum or a series of lump sums. The loan doesn’t have to be fully repaid until until you die or move permanently into long-term care.
If you have the financial means, you can choose to pay off some or all of the monthly interest. It would reduce the amount of interest added over the life of the mortgage and reduce the amount you’ll owe in the end.
Whether you're looking to pay off an existing mortgage, make some essential home improvements, or gift money to a family member, a lifetime mortgage could help.
Lifetime mortgage pros and cons
You can only get a lifetime mortgage through a qualified equity release adviser, but it's important to understand the benefits and risks.
Is a lifetime mortgage right for you?
To be eligible to release equity from your home with one of our lifetime mortgages:
To be eligible to release equity from your home with one of our lifetime mortgages:
- You must be aged 55 (or 50 for the Payment Term Lifetime Mortgage) or over.
- You must own (or be buying) your own home, with little or no mortgage left to pay.
- Your home must be worth at least £70,000 or £100,000 depending on your property type.
Our lifetime mortgage specialists are available to answer any questions you have. Why not give us a call today. Or, if you'd rather, you can give us your number and we'll give you a call back.
Equity release calculator
This calculator helps you see how much equity you could release with a lifetime mortgage, a loan secured against your home. We’ll ask you to register your details so we can show you the calculation. You may also receive a call from us to assist you with your enquiry.
Before you start
Our lifetime mortgages
Interest Roll Up Lifetime Mortgage
If you'd like to take a lump sum, or a series of lump sums, and pay nothing until you die or move into long term care, select this option.
Optional Payment Lifetime Mortgage
If you're aged 55 or over and you'd prefer to take a lump sum, or a series of lump sums, and pay off some or all of the interest, this could be right for you.
Payment Term Lifetime Mortgage
If you're aged 50 or over and you'd prefer to take a lump sum and pay all the interest each month for a chosen payment term, this could be right for you.
| Interest Roll Up Lifetime Mortgage | Optional Payment Lifetime Mortgage | Payment Term Lifetime Mortgage | |
| Age | 55+ | 50+ | |
| Minimum property value considered | £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties. | ||
| How is the loan paid out? | Lump sum or series of lump sums | Lump sum or series of lump sums | Lump sum |
| Minimum initial lump sum | £10,000 | ||
| Minimum additional drawdown amounts for each release | £1,000 | £1,000 | Drawdown not available |
| Maximum loan amount | Determined by your age and property value. | Determined by your age, affordability and property value | |
| Is the loan secured against my home? | 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 the home and go into long-term care. | ||
| How is interest charged on the loan? | Interest is charged on the loan amount plus any interest already added, so the amount owed will increase quickly over time unless you pay off some or all of the interest. You may have cheaper ways to borrow money. | ||
| Do I have to pay interest every month? | No - but you can choose to make partial repayments if you want to manage the amount owed on the loan and interest. | No - but you can pay some or all of the monthly interest to reduce the overall cost of the loan, and you can stop making payments at any time. If you choose to stop payments, you can't restart them. | Yes, you must pay the full interest amount each month for a chosen payment term. This will reduce the overall cost of the loan and may mean that you are able to borrow more than with other lifetime mortgages. |
| Will I still own my home? | Yes, the property stays in your name and the loan is secured against your home. | Yes, the property stays in your name and the loan is secured against your home. However, as a last resort, your home may be repossessed if you do not keep up with payments. | |
| Can I end up owing more than the home is worth? | No. With our No Negative Equity Guarantee, as long as you follow the terms and conditions of the loan, you'll never owe more than the home is worth. | The No Negative Equity Guarantee will not apply to any missed monthly interest payments and the interest on them. If the sale of your property doesn’t cover these, we’ll ask your beneficiaries to settle the balance. | |
| Is the interest rate fixed? | Yes. The interest rate is fixed for the life of the loan. | ||
"We did look at downsizing but, having been here nearly 30 years, we love this village. We love this house, so, the way we’ve done the lifetime mortgage means we’ve got all the benefits of living here and yet all the benefits of being able to help ourselves, our children, our grandchildren and having a lot more fun."
- John, Oxfordshire
How much is a lifetime mortgage?
One of the main things people want to know about lifetime mortgages is how much the loan will cost. There are two parts to this answer:
Lifetime mortgage interest rates: This is the rate of interest charged on the loan, which affects the total amount you need to pay back.
Costs involved in releasing equity: These are the costs you need to pay during the process of releasing equity with a lifetime mortgage, for example arrangement fees and solicitors fees. We don't charge an advice fee.
Why L&G
We're here to help you
Since 2015, we've lent over £6.84 billion to over 119,000 customers.
For lifetime mortgages
We're a proud member of the Equity Release Council.
Award winning
Moneyfacts awarded us Best Equity Release Provider in 2024.
Get in touch about our lifetime mortgages
More about later life mortgages
Find out more about your later life mortgage options
Compare later life mortgages
Which later life mortgage is right for you?
Lifetime Mortgages (a type of equity release) and Retirement Interest Only Mortgages are sometimes grouped together as 'later life mortgages' or 'later life lending' products. While similar and often used for similar purposes, these are different products and it's important to understand the differences between the two. There may be cheaper ways for you to borrow money.
Find out more about our range of later life mortgages, or use our simple tool to find out which product might best suit your needs.
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.
