Our Lifetime Mortgage is a type of Equity Release mortgage that provides a lump sum loan with no monthly payments.
It's available from age 55 with no maximum.
It can be used to release some of the money built up in your client's property, without having to sell it. The amount borrowed (plus any charges or interest accumulated) is usually repaid when they pass away or move into long-term care.
They will always own their home and it will never be repossessed, as long as they abide by the terms and conditions.
How does it differ from a normal mortgage?
There are many differences – a key one is that your client doesn't need to make any monthly payments, but they can if they want to service some or all of the monthly interest. If they don't do this, the interest will 'roll up' or compound and be added to what they owe.
Who is it for?
A Lifetime Mortgage could be suitable for a wide range of circumstances, including:
- Those who don't intend to make payments each month
- Remortgaging an existing loan
- Generating funds e.g. for home improvements, lifestyle or to start a Bank of Mum and Dad
- IHT planning and wealth management
Intermediaries require the appropriate Equity Release qualification to advise their clients on our Lifetime Mortgage.
All borrowers will require independent legal advice.
Available from age 55 with no maximum
No monthly payments
Your client doesn't need to make any payments or they can choose to pay up to 10% each year. They can make payments every month with a minimum of £200 payment.
No early repayment charges (ERCs) after 5 years if your client moves to a property that doesn't meet our lending criteria.
Roll-up / Compound Interest
Any interest your client doesn't service each month is added to the total loan balance. Interest is then added on top of that, meaning the amount they owe can grow quickly.
Equity Release Council approved
An additional option for your clients if you have the relevant Equity Release qualification.
Download these guides to explore all our products and criteria.
Explore our Lifetime Mortgage products
Fixed Rate Term