Lifetime Mortgages | Legal & General

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At a glance

Lifetime Mortgages eligibility criteria A customer aged 55 or over, nearing the end of their interest only mortgage term could benefit from a lifetime mortgage. They need to live in the property.
Lifetime mortgage products There are 2 types of products, one where they can pay the interest each month, and one where they don’t pay anything. Any unpaid interest is added to the loan.
The amount they can borrow The older they are, the more they can borrow. Use the calculator below to see how much your customer can borrow.
The customer must get advice Legal & General can help customers understand if a Legal & General Lifetime mortgage is the right option for them. If Legal & General don't have the right product for your customer, they also have access to the whole lifetime mortgage market.
Costs involved Through the partnership between Santander and Legal & General, the advice the customer receives is free and they will not have to pay for a valuation. Some of our products have a £599 fee and the customer must meet the cost of their own legal advice. All customers will receive a cashback of 0.3%. (On a £100k loan this is £300.)
Interest rates The rates available change frequently and the adviser will be able to give more information on this. in 2021 Santander customers paid an average of 3.35%. The higher the LTV, the higher the rate that is charged.

Is a lifetime mortgage right for your customer?

They won't have to move out of their home

A lifetime mortgage means your customer can stay in their own home, but still access the money tied up in it.

No negative equity guarantee

Whatever happens to the value of the customer’s property, they will never owe more than the price it is sold for. Subject to terms and conditions.

Fixed interest rates

The rates for a Legal & General Lifetime Mortgage are fixed so they will never change during the life of the loan.

Option to make payments

Your customer can opt to pay all, some or none of the monthly interest. If they choose pay all of the interest each month, the balance will never change. Any unpaid interest is added to loan.

Lifetime mortgages are portable

If your customer wants to move home in the future, they can port the loan to the new property.

Common questions

What is a lifetime mortgage?
Eligibility criteria
What are the benefits?
Considerations

A lifetime mortgage is a loan that’s secured against the customer’s home which must be used to pay off their residential mortgage balance in full, including any Early Repayment Charges.

It must be the first and only charge on the property, therefore please consider any second charges.

There are no affordability checks, we underwrite the property, not the person.

If there’s any remaining money it could be used for home improvements, holidays or to improve their quality of life.

There is no end date to the loan. The balance and is repaid when the last surviving borrower dies or goes into long term care.

Lifetime mortgages can only be bought through a qualified financial adviser.

They can be a really good option for Interest Only shortfall customers who want to stay in their homes and ether keep paying interest, or want the burden of a regular monthly payment to go away.
Minimum age: 55 (or 54 for whole of market referrals)

Maximum age: 90 (the Retirement Interest Only mortgage must complete before their 91st birthday)

Property condition: standard construction, in a good state of repair and free of any tenancy restrictions

Minimum loan amount: £10,000

Minimum property value: £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties.

Location: England, Wales or mainland Scotland
Stay in their home. The customer will still live in and own their property, subject to the Terms and Conditions being met.

Option to make monthly payments. If the customer takes out the Flexible Lifetime Mortgage, they won’t have to make monthly payments. With the Optional Payment Lifetime Mortgage, they can choose to pay some, or all, of the monthly interest by Direct Debit, but they can also stop making monthly interest payments at any time.

Portable loan. Customers can transfer their lifetime mortgage to a new property as long as it’s acceptable to us and meets our lending requirements at the time.

No Negative Equity Guarantee. The customer or their beneficiaries will never payback more than the amount their property is sold for, even if the home goes down in value, subject to our Terms and Conditions being met.

Inheritance Protection. The customer can secure a percentage of the net sale proceeds of their home for their beneficiaries, though it will reduce the amount they can borrow. If the maximum loan amount is required to repay the residential mortgage, Inheritance Protection may not be available.

Early repayment. The customer can pay part of the mortgage off early with no Early Repayment Charge using the Optional Partial Repayment feature, subject to the Terms and Conditions
A lifetime mortgage secures a loan against a home.

An Early Repayment Charge may need to be paid if a loan is repaid before a customer dies, or moves out of their home and into long-term care.

Interest is charged on the loan plus any interest already added. The amount owed may increase quickly over time, reducing the equity left in the home and the value of any inheritance.

Reminder!

The information here is for training purposes only and this URL should not be shared with anyone outside of Santander or Legal & General.

Customer stories

Find out how other Legal & General customers have benefited from their lifetime mortgage.

Customer stories

Other products

Find out about a Retirement Interest Only Mortgage.

Retirement Interest Only Mortgage