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Retirement Lending

Equity Release lifetime mortgages and retirement mortgage solutions can unlock tax free funds from your home for your personal life choices such as helping children financially, home improvements, paying debts, holidays or provide income.

How does equity release work?

Here is a simple summary of how a lifetime mortgage works:

  • A lifetime mortgage is a loan secured on your property and is available to UK homeowners aged 55 and older
  • You can access some of the equity tied up in your home tax-free, while continuing to live there
  • Choose to take a one-off lump sum, or a smaller amount upfront with the facility to borrow more in the future
  • The total you can borrow will depend on your age, your health and the value of your home
  • You don’t have to make monthly repayments because the interest is added to the loan amount each year
  • The loan plus interest is repaid when the property is sold — typically, when you die or leave your home permanently (e.g. you go into long-term care)

Am I eligible for a Lifetime Mortgage?

These are some of the things you may consider when looking into taking out a lifetime mortgage:

  • I am aged over 55 or over
  • I live in my own home with small or no mortgage
  • I want to borrow a minimum of £10,000
  • I live in England, Wales or mainland Scotland
  • My house is worth a minimum of £70,000

Key Features

You’ll remain a homeowner

You’ll remain the legal owner of your own home until it’s sold once you and your partner have passed away or moved into long-term.

No negative equity guarantee

You won’t ever pass any debt on to your estate or family once you pass away or go into full time care providing your house is sold for the best price reasonably obtainable.

Flexible withdrawal options

Our lifetime mortgage gives you the option to receive either a one-off cash sum or a smaller lump sum with a cash reserve to draw from you’ll only pay interest on the money you withdraw and voluntary partial repayments can be made (terms and conditions apply)


Leave part inheritance

You can safeguard a percentage of your home’s value to leave behind as an inheritance although this may reduce the amount you’ll be able to borrow.

Downsizing protection

If you want to move, and apply to transfer your lifetime mortgage to a new property that doesn’t meet our current lending criteria, downsizing protection can help. If you’re eligible, you can repay the lifetime mortgage with no early repayment charge. This feature is available on lifetime mortgages applied for on or after 8 April 2019. Terms and conditions apply.

Flexible Payment Options

You can receive either a one-off lump-sum payment or a smaller sum, with a cash reserve to draw from. So, whether you’re paying the deposit for a loved one’s first home or helping with your grandchildren’s tuition fees, receive your sum in the most practical way for you.

 

Popular uses for lifetime mortgages

A more comfortable retirement

  • Clear outstanding debts
  • Retire a little earlier than planned
  • Top up your regular income
  • Fund home improvements

Practical realities

  • Adapt your home to your needs as you get older
  • Fund care at home
  • Pay funeral costs
  • Pay medical or legal bills

Help the family

  • Help children get on the property ladder or set up a business
  • Pay education fees or living costs
  • Finance a wedding or other family events
  • Reduce the inheritance tax burden

Well-deserved treats

  • Take regular holidays or the holiday of a lifetime
  • Finance a new car or caravan
  • Fund leisure activities and hobbies
  • Treat yourself to something you’ve always wanted

Important things you should know

  • Think carefully before borrowing against your home. You must always get professional advice from a specialist adviser, a lawyer or both
  • The interest added to a lifetime mortgage can build up quickly and increase the amount you owe
  • Releasing equity from your home will reduce the value of your estate and the amount you’re able to leave as an inheritance when you die
  • Equity release may affect your tax position and your entitlement to state benefits
  • The future market value of your home could be higher or lower than it is today

Frequently Asked Questions

Am I eligible for equity release?

Can I release equity in my home if I'm still paying off my mortgage?

Could releasing equity from my home affect the welfare benefits I'm entitled to?

Do I have to pay tax on the money I release?

Can I release equity in my home and then move?

Do I have to take a cash lump sum all at once?

Can I release the equity in my home and leave an inheritance?

Is there a risk of owing more than my home is worth?

What fees might I have to pay?

Where can I get expert advice?