Lifetime Mortgage

From helping you avoid downsizing to home improvements or helping loved ones get onto the property ladder, our award winning Lifetime Mortgages could help you enjoy your retirement even more.

Overview

What is a Legal & General Lifetime Mortgage?

  • It's a loan that's secured against your home to give you a tax-free cash sum, that you can take all at once, or in smaller amounts when you need them, up to the full loan amount.
  • If you take smaller amounts later, a different interest rate may apply to each amount you take, depending on the interest rates available at the time.
  • We offer two Lifetime Mortgages:
    Lifetime Mortgages offered by Legal & General
    Flexible Lifetime Mortgage Optional Payment Lifetime Mortgage
    With our Flexible Lifetime Mortgage, you won't have to make any monthly payments. With our Optional Payment Lifetime Mortgage, you can choose to pay some, or all, of the monthly interest by Direct Debit. If you choose this product, it could help you reduce the overall cost of the loan. You can stop making monthly payments at any time.

  • With both our Lifetime Mortgages, any unpaid interest is added each month to the amount you owe and will increase quickly over time. Interest is charged on the loan plus any interest already added. A lifetime mortgage will reduce an inheritance and the equity left in your home.
  • Our Lifetime Mortgages are usually repaid from the sale of your home when the last surviving borrower dies, or moves out of their home and into long-term care. Of course, any money left over would be available to you or your beneficiaries.

Find out more about lifetime mortgages, how they work and what they can be used for.

What are they and how do they work? video

Transcript: What are they and how do they work?

Lifetime mortgages: What are they and how do they work?

You and your home have been on quite a journey

But it’s not over yet. So how can your home help you now?

Well, with a lifetime mortgage that’s secured against your home, you could unlock some of the cash tied up in your property, as either

A larger single amount, or several smaller amounts, that you can apply to take when you need them.

Interest is only owed when you take the money. You won’t make any monthly repayments.

Instead, interest is charged on both the loan and any interest already owed, and added to the total amount that’s secured against your home.

That means the total you owe can grow quickly, reducing the equity in your home and the value of any inheritance you may leave.

The loan and the interest are only repaid when you die or enter long term care.

The money you release could be the savings you never knew you had, helping you in your retirement.

It’s a big decision, and there are many factors to consider. That’s why you can only get a lifetime mortgage through a qualified adviser.

They’ll ensure that you’re eligible for the product, and can check if it’s the best solution for you.

 

Income Lifetime Mortgage
We've recently launched our new Income Lifetime Mortgage that provides a monthly income for a fixed term. To find out more and see which product best meets your needs you can speak to your own adviser or call View - The Retirement Lending Advisers (TRLA). They're not part of Legal & General, they're a separate company, and they only advise on our lifetime mortgages.

Could I qualify?

If you answer 'yes' to all of the following questions, a Legal & General Lifetime Mortgage could be right for you.

  1. Are you aged 55 or over?
  2. Are you living in (or buying) your own home with a small or no mortgage?
  3. Do you want to borrow a minimum of £10,000?
  4. Is your property made of standard construction, in a good state of repair, free of any tenancy restrictions and in England, Wales or mainland Scotland?
  5. Is your home valued £100,000 or over (£150,000 for ex-council, ex-housing association or ex-Ministry of Defence properties)?

What are the benefits and risks?

Benefits and risks
Benefits Risks

Cash when you need it.

You could release money from your home, tax-free. You can release the full amount at the start of the loan or you can take a smaller amount at first, with the option to release more money at a later date. This is known as the Drawdown Facility.

How you spend or use the money may affect the tax you pay and the benefits you receive.

If you take more later the interest rate for that loan will be set at that time, and may be higher or lower than the rate you pay on your initial amount.

You can stay in your home

With a lifetime mortgage you don't need to leave your home and you will still own your property, providing you meet the terms and conditions.

Failure to meet the Terms and Conditions

For example letting out, or failing to maintain the property, may mean that we have to put it right on your behalf. It could even result in the forced sale of your property and loss of Inheritance Protection if you have taken it. 

No monthly payments needed.

For the duration of your lifetime mortgage you do not need to make any monthly payments.

The total amount you owe increases quickly over time.

Interest is charged both on the original loan amount and the interest that has already been added. This means that the amount you owe will quickly increase over time, reducing the equity left in your home and the value of any inheritance.

You should consider if there are cheaper ways for you to borrow money.

Ability to make Optional Partial Repayments.

You can pay part of your lifetime mortgage off early with no Early Repayment Charge, provided it is within the limits and terms that apply. This will reduce the total amount of interest that will accumulate on your lifetime mortgage.

You may have to pay a charge for early repayment.

If you decide to repay more than you are allowed under Optional Partial Repayments, or decide to repay all of your lifetime mortgage off early, you may have to pay an Early Repayment Charge, which could be substantial.

No Negative Equity Guarantee.

This means you or your beneficiaries will never have to pay back more than the amount your property is sold for. This is provided it is sold for the best price reasonably obtainable and you have met the Terms and Conditions of your lifetime mortgage

You will need to pay up-front costs when taking out a lifetime mortgage.

Taking into account the up-front costs, if you were to die or move into long-term care within a short time period, there may be cheaper ways for you to borrow money.

It is possible to still leave an inheritance?

If you take out Inheritance Protection, you can protect a proportion of the value of your home for your beneficiaries.

There may be no inheritance left for your beneficiaries.

Unless you have take out Inheritance Protection, but remember this reduces the amount you can borrow.

It is possible to move home

You can move home and your lifetime mortgage can move with you, providing your new property is acceptable to us and meets our lending requirements at that time.

You may need to repay part of your lifetime mortgage if you move.

If, for example, your new property is worth less than the original property. In this case, any amount that we ask you to repay would not be subject to an Early Repayment Charge.

How much could I release?

Our easy to use calculator will give you a quick idea of how much equity you could release from your property.

How do I take out a Legal & General Lifetime Mortgage?

You can only take out a Legal & General Lifetime Mortgage through a lifetime mortgage adviser.

You can talk to your own specialist adviser or you could speak to The Retirement Lending Advisers (TRLA) on 0808 273 1018. TRLA are specialist regulated lifetime mortgage advisers. They're not part of Legal & General, they're a separate company. Calls are free, Monday to Friday 9.00am to 5.30pm. TRLA may record and monitor calls.

If you don't have a suitable adviser, you can find one in your local area through the Link to Equity Release Council's website.