Flexible Lifetime Mortgage

• Tax-free cash

  Since the money you release with a lifetime mortgage is borrowed from your equity, it remains tax-free.

• Release equity when you need it.

  There’s flexibility to borrow more in the future if you choose not to take the full amount available upfront. If you take smaller amounts later, a different interest rate may apply to each amount you take, depending on interest rates available at the time.

• No regular payments

  There’s no need to make any monthly interest payments.

• Optional repayments

  You can choose to make partial repayments if you want to manage the amount owed on the loan and interest.

• Guaranteed no negative equity

  We guarantee that your beneficiaries will never have  to pay more than the sale value of your home. This is as long as the property is sold for the best price reasonably obtainable and you’ve met the product Terms and Conditions.

Find out more about how equity release works

• Am I eligible?

  You must be 55 or over and living in (or buying) your own home, with either a small or no mortgage. Your home will need to be worth a minimum of £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties.

• I want to take lump sums

  A Flexible Lifetime Mortgage lets you take a one off lump sum, or smaller amounts as and when you need them. You can borrow a minimum of £10,000 in your first release and then future lump sums of at least £2,000 each time.

• I want some flexibility later

  If you want the option to release more equity in the future, then an adviser can help you achieve this with a lifetime mortgage.

Find out more in our Lifetime Mortgage guide

• Impact on inheritance

  A lifetime mortgage will reduce an inheritance. There is an option to take inheritance protection to secure a proportion of the net sale proceeds of your home.

• Early Repayment Charges
  
  A lifetime mortgage is designed to last a lifetime. If you decide to repay your lifetime mortgage in full, you may have to pay an Early Repayment charge which could be substantial, so think carefully before you decide.

• Moving home
  
  You can move home, and the loan will be transferred as long as the new property meets our requirements.

• Means-tested benefits
  
  Taking out a lifetime mortgage may affect your entitlement to means-tested benefits or pension credit.

• Compound interest
  
  Interest is charged on the loan, plus any interest already added. So, the amount you owe will increase quickly over time. There may be cheaper ways to borrow money.

The pros and cons of equity release