Lifetime Mortgages

One of our Lifetime Mortgages could help you pay off your Santander mortgage balance in full, including any early repayment charges that may apply. Whether you’d like to continue paying the interest each month or not, we could have a solution for you.

Overview

What is a Legal & General Lifetime Mortgage?

A lifetime mortgage is a way of releasing a lump sum or regular income from your home, tax-free, without having to move or downsize. It’s a type of equity release - a loan secured against your home - and is designed exclusively for homeowners aged 55 or over.

The interest rate is fixed for the duration of the lifetime mortgage. And depending on which product you take out, you can choose to pay all, some or none of the interest. Any unpaid interest is added to the amount you owe each month, which means the amount you owe will increase quickly over time.

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 goes into long-term care.

To ensure you understand all the features and benefits, you can only get a lifetime mortgage through a specialist adviser.

We offer three Lifetime Mortgages:

Flexible Lifetime Mortgage	Optional Payment Lifetime Mortgage	Income Lifetime Mortgage
Our Flexible Lifetime Mortgage gives a tax-free cash sum and you don't need to make any monthly interest payments.	This option gives you a tax-free cash sum, with the option to pay monthly interest by direct debit and reduce the overall cost of your loan.	This could be right for you if you're looking to release some of the money tied up in your home to supplement your monthly income over a fixed term.
Get a tax-free cash sum from your home No need to make monthly interest payments Option to apply for more money in the future	Get a tax-free cash sum from your home Choose to make monthly interest payments, to manage the amount you owe Stop making interest payments at any time Option to apply for more money in the future	Get a monthly income for a fixed term paid into your bank account Get an initial cash sum of £2,500 minimum Benefit from the certainty of fixed income

What are they and how do they work?

Transcript: What is a lifetime mortgage?

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.

Is it right for me and could I qualify?

One of our Lifetime Mortgages could be right for you if you want to:

Enjoy a tax-free cash sum
Pay off your interest only mortgage by releasing equity in your property
Make Optional Partial Repayments if you want to
Choose to make monthly payments. We have three different Lifetime Mortgage products which allow you to choose different options, an adviser will be able to tell you more about this. Conditions apply.

And if you can answer ‘yes’ to all of these questions:

Are you aged 55 or over?
Are you living in (or buying) your own home with either a mortgage or no mortgage?
Do you want to borrow a minimum of £10,000, or £2,500 on a Income Lifetime Mortgage?
Is your property made of standard construction, in a good state of repair, free of any tenancy restrictions, and is it in England, Wales or mainland Scotland?
Is your home valued at £100,000 or above?

What are the benefits and risks?

Benefits	Risks
You can stay in your home You don’t need to leave your home and you will still own your property. This is as long as you meet the Terms and Conditions of the lifetime mortgage.	How you spend or use the money may affect your taxation and benefits. Taking a lifetime mortgage could affect your eligibility for state benefits.
Cash when you need it. You could release money from your home tax-free and use it to increase your income in retirement. You can choose to release the full amount at the outset or take a smaller initial amount with the option to release more money at a later date. This is known as the Drawdown Facility.	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.
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 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.	The total amount you owe increases quickly over time. Unpaid interest is added to the loan. This means the amount you owe will increase quickly over time, reducing the equity left in the home and the value of any inheritance. You should consider if there are cheaper ways for you to borrow money.
You can leave an inheritance. If you take our Inheritance Protection this can help you secure a proportion of the net sale proceeds of your home for your beneficiaries of your estate when you die.	There may be no inheritance left for your beneficiaries. You should consider discussing the impact of a lifetime mortgage on your inheritance with your family or beneficiaries before making a decision.
The loan is portable so you can take it with you when you 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’ll need to pay upfront costs when taking out a lifetime mortgage - Taking into account the upfront 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
No affordability checks. The amount you can borrow depends on your age, the value and suitability of your home, and whether you are applying jointly or as an individual.	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.

Lifetime mortgage calculator

Our Lifetime Mortgage calculator makes it easy to see how much money you could borrow with a Legal & General Lifetime Mortgage.

All applications above age 90 will be considered on an individual basis.

Our standard maximum loan is £750,000 and any loans above this amount are considered on an individual basis. Based on the information you have provided, we may be able to lend you more than £750,000.

To find out more call The Retirement Lending Advisers (TRLA) on the free phone number below.

They're not part of Legal & General, they're a separate company who only advise on our Lifetime Mortgages and they won’t charge you an advice fee. They can answer any questions you have about our products, check you’re eligible and arrange an appointment with an adviser, if you’d like one.

0808 302 6478

Calls are free. Monday to Friday, 9.00am to 5.30pm.
Calls may be recorded and monitored.

If you prefer, TRLA can call you. Simply request a call back by entering your details below.

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Advice and support

Taking out a lifetime mortgage is an important decision. In order to protect you, the Financial Conduct Authority requires that you receive financial advice.

The advice we offer ensures you make a fully informed decision, and only take out a product that’s right for you.

Please contact Santander who will refer you to a Legal & General adviser. Legal & General advisers can only advise on a Legal & General Lifetime Mortgage.

If you prefer to talk to your own financial adviser and you don't have one, you can find a list of advisers in your area on the Equity Release Council or Unbiased websites.

Frequently asked questions

Get answers to some of our most common questions.

FAQs

Lifetime Mortgages

Overview

What is a Legal & General Lifetime Mortgage?

Transcript: What is a lifetime mortgage?

Please call me

Personal details

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Personal details

Advice and support

Frequently asked questions