Optional Payment Lifetime Mortgage

• Tax-free cash

  Since the money you release, with a lifetime mortgage is borrowed from your equity, it remains tax-free.

• Option to make monthly payments

  You can pay some or all of the monthly interest to reduce the overall cost of the loan, and you can stop making payments at any time.

• Release equity when you need it.

  There’s flexibility to borrow more in the future if you choose not to take the full amount available upfront. If you take smaller amounts later, a different interest rate may apply to each amount to take, depending on interest rates available at the time.

• Guaranteed no negative equity

  We guarantee that your beneficiaries will never have to pay more than the sale value of your home. This is as long as the property is sold for the best price reasonably obtainable and you’ve met the product Terms and Conditions

Find out more about how equity release works

• Impact on inheritance

  A lifetime mortgage will reduce any inheritance you wish to leave. When you apply for a lifetime mortgage, there's an option to take inheritance protection to secure a proportion of the net sale proceeds of your home.

• Early Repayment Charges

  As a lifetime mortgage is designed to last a lifetime. If you decide to repay your lifetime mortgage in full, you may have to pay an Early Repayment Charge which could be substantial, so think carefully before you decide.

• Moving home

  You can move home, and the loan will be transferred as long as the new property meets our requirements.

• Means tested benefits

  Taking out a lifetime mortgage may affect your entitlement to means-tested benefits or pension credit.

• Compound interest

  Interest is charged on the loan, plus any interest already added. So, if you don’t pay some or all of the monthly interest, the amount you owe will increase quickly over time. There may be cheaper ways to borrow money.

The pros and cons of equity release