Tax-free cash, as a monthly income
Our Income Lifetime Mortgage, a type of equity release, is a loan secured on your home which allows you to borrow against the value of your home while continuing to live there.
It gives you a regular monthly income over a fixed term. You can choose to take the income over 10, 15, 20 or 25 years, with a minimum initial cash sum.
- Tax-free cash
Since the money you release, with a lifetime mortgage is borrowed from your equity, it remains tax-free.
Receive a fixed income over a set period of time
You can fix the monthly amount, interest rate and income term, with the option to take the income over 10, 15, 20 or 25 years.
Guaranteed no negative equity
We guarantee that your beneficiaries will never have more to pay 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.
Optional partial repayments
You can choose to make partial repayments if you want to manage the amount owed on the loan and interest.
Full details on the features are in the terms and conditions an adviser will be able to share with you.
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 £100,000, or £150,000 if an ex-council, ex-housing association, or ex-Ministry of Defence property.
I’d like to afford extras in retirement
Income Lifetime Mortgage lets you release a minimum of £200 a month to give you that extra bit of cash, once you have taken a minimum of £2,500 as an initial cash sum.
What if I no longer want the income?
You can stop the payments at any time, once you stop receiving income though, you can’t start receiving it again.
An arrangement fee applies for an Income Lifetime Mortgage.
At the end of the term, the income stops
Once the fixed income term ends the monthly income will stop but interest will continue to roll up until the lifetime mortgage is repaid
Have you thought about inflation?
Inflation may reduce the value of the monthly income you receive over time.
What will you do when the income stops?
Will you have something else to live on when the fixed term income comes to an end?
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
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.
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.
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 loan is usually repaid when the last borrower dies or moves out of the home into long-term care.
Equity Release Council
Legal & General Home Finance Ltd is a member of the Equity Release Council, a trade body setting standards for providers. Take a look at their consumer brochure for more details.
Contact us about equity release
The Retirement Lending Advisers (TRLA) are regulated advisers who, on our behalf, only offer advice on our Lifetime Mortgages.
Call TRLA on:
Monday to Friday 9.00am to 5.30pm.
TRLA may record and monitor calls
Get independent advice
You can't take out an equity release product unless you have taken financial advice. Find out how to access independent legal and financial advice.