Payment Term Lifetime Mortgage

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

Monthly payments
You will make monthly interest payments until the end of your chosen payment term and then the unpaid interest is added to the amount you owe.

You can make partial repayments
At the end of your chosen Payment Term, when you’ve stopped making Monthly Interest Payments, the Optional Partial Repayment feature enables you to pay part of the lifetime mortgage off early with no Early Repayment Charge subject to our Terms and Conditions.

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.
The No Negative Equity Guarantee won’t apply to any monthly interest payments you fail to make in full, and on time, throughout the Payment Term. This includes any interest which has accrued on any monthly interest payments you fail to make.
If you have any outstanding monthly payments you will need to pay these and any interest that has accrued on them. 

Am I eligible?
You must be 50 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. You need to be able to afford to make monthly interest payments for your chosen payment term.

I have an Interest Only Mortgage
If you have an existing interest only mortgage that’s coming to an end and you can still make monthly interest payments then a Payment Term Lifetime Mortgage, Optional Payment Lifetime Mortgage or Retirement Interest Only mortgage could be for you. With our Payment Term Lifetime Mortgage you must pay all of the monthly interest for your chosen term. After that, the unpaid interest is added to the amount you owe. The other two products have different repayment commitments.

Make monthly interest payments
You will make monthly interest payments for a chosen payment term. This can be until you turn 75 or (if you're currently in employment) until you retire, whichever is sooner. This will reduce the overall cost of your loan and may enable you to borrow more than with other lifetime mortgages. The earliest age your payment term can end is 55.

Commitment to repaying your monthly interest payments
As a last resort, your home may be repossessed if you do not keep up with payments

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

Early Repayment Charges
As 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. When you have finished making monthly interest payments, the amount you owe will increase over time. There may be cheaper ways to borrow money.