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Lifetime mortgage

Release tax-free cash from your home with a lifetime mortgage

Reviewed by David Hamilton, Luana Jordan

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.

  • Tax-free cash
    When you release equity with one of our Lifetime Mortgages, you can take a lump sum in one go or as a series of smaller lump sums when it suits you.
  • Spend it how you want
    You can use the money you release for home improvements, helping children buy their first property or increase your income in retirement. It's up to you.
  • Nothing to repay
    Unless you choose otherwise, there's nothing to repay until you die or move permanently into long-term care.
  • 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.
  • Stay in your home
    With equity release, you don't need to downsize and can stay in your home until you die or move permanently into long-term care.
  • You can still move house
    So long as the new property is acceptable to us.
  • Inheritance protection
    Part of the value of your home can be passed on if you choose our Inheritance Protection option.
  • 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.
  • The interest can build up quickly
    Any unpaid interest can rapidly build up over time. There may be cheaper ways to borrow money.
  • Reduced inheritance
    Even with our Inheritance Protection option, releasing equity with a lifetime mortgage will reduce how much you can leave as an inheritance.
  • Inheritance tax
    If you gift the money, the recipient may need to pay inheritance tax in the future.
  • Early Repayment Charge
    If you choose to repay all or a significant part of the loan early, there may be an Early Repayment Charge.
  • Means-tested state benefits
    If you're receiving certain means-tested state benefits, taking a lifetime mortgage could impact your entitlement to these benefits.
  • Higher interest rates
    Usually the interest rates for a lifetime mortgage are higher than the rates charged for a traditional mortgage.
  • Repaying an existing mortgage
    You may have to pay an Early Repayment Charge to your existing lender if you remortgage.
  • With the Payment Term Lifetime Mortgage your home may be repossessed
    This may happen as a last resort if you fail to keep up with payments.

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.

Get lifetime mortgage advice
Lifetime mortgage calculator

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

  • The amount you can borrow is based on your age and the value of your home, but this might be less when you come to apply. If you are the sole borrower you may be able to release more.
  • If you're applying for a joint lifetime mortgage, enter the age of the youngest applicant.
  • You need to be between the ages of 50 and 90.
My date of birth is
 /
/
Are you still in employment?
be able to make monthly interest payments until I retire
£
£

This is a guide to the lifetime mortgage products we offer, and not advice or a personal recommendation. You can only buy a lifetime mortgage through a financial adviser.

If we call, we’ll use your address to look up your property to assist with your enquiry.

Just one more step…

To find out how much you could receive, and to get a call back to discuss the product details, please complete the form. You can also provide your email address if you’d like to opt in to receiving emails about our products and services.

We’ll never share your details with third parties for their own marketing purposes. Details of how we process your information can be found in our privacy policy. You can opt out of marketing at any time by emailing LGFAoptout@landg.com

Based on the information supplied you could release:
This is an estimate. The amount you can release depends on your property, its value and your individual circumstances. Speak to an adviser to find out how much you could release.

Thank you.

* Required

What do you plan to use the money for? (You can select more than one)
What best describes you?
If you are thinking about applying for a lifetime mortgage with someone else, please let us know their date of birth.
By clicking 'Get result' and submitting this form you consent for us to potentially calling you about your results and how our Lifetime Mortgages may work for you.
By providing your email address you're giving consent for us to send you emails with news, information and offers on the products and services provided by Legal & General Financial Advice.

Our lifetime mortgages

Man in garden

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.

Interest Roll Up Lifetime Mortgage
Couple on sofa

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.

Optional Payment Lifetime Mortgage
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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.

Payment Term Lifetime Mortgage

  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

Find out how much you could release
John and June

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.

Lifetime mortgage interest rates
Costs to release equity

Why Legal & General

We're here to help you

Since 2015, we've lent over £6.73 billion to over 118,000 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.

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Get in touch about our lifetime mortgages

To speak to us about a lifetime mortgage, call our advice team on the number below.

For any other enquiries please get in touch via our contact us page 

0808 301 7044

Monday to Friday 9:00am - 5.30pm
We may record and monitor calls.

Lines are currently closed

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.

Compare later life mortgages
Which later life mortgage?

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.

About our Retirement Interest Only Mortgage
Retirement Interest Only Mortgage calculator
Our equity release experts
David Hamilton

David Hamilton

Head of Product, Product & Proposition, Home Finance

As LGHF’s Head of Product, David’s responsible for bringing new products to market and making sure that our existing products stay marketplace relevant. He leads a team of four product, customer outcome and proposition managers.

More about David
Luana Jordan

Luana Jordan

Product Manager, Product & Proposition, Home Finance

Luana works in LGHF’s New Product Development team. She’s the product owner of our new Payment Term Lifetime Mortgage (PTLM), and also works on our Lifetime (LTM) and Retirement Interest Only (RIO) Mortgages.

More about Luana