Lifetime Mortgage

Designed to enable customers to unlock equity in their homes for a variety of needs

Key details

  • Our lifetime mortgage has been designed to help customers unlock a lump sum with optional future releases from their homes with clear rates, charges, optional payments and a range of safeguards.
  • The mortgage will accrue interest at a fixed rate until the loan is repaid, for example, when the customer enters long term care, sheltered accommodation or dies. There is no affordability assessment and monthly mortgage payments do not apply.

Key Benefits

  • No Negative Equity Guarantee (NNEG)
  • A percentage of the property value can be protected for inheritance or care
  • Future release functionality available for 7 years
  • Portable with no early repayment charges
  • Interest rate fixed for the life of the mortgage
  • No monthly interest payments during the customer's lifetime

For more information please see our Lifetime Mortgage Lending Guide (PDF)

Lifetime interest rates

  • Our Lifetime products are only available for releasing equity where the client already owns the property and uses it as their main residence.

    We do not offer Lifetime mortgages for the purpose of purchasing property.

    • Minimum age – 55 years
    • Maximum age – 85 years
      • For joint applications, the minimum age applies to the youngest applicant, the maximum age applies to the oldest applicant
      • Maximum number of applicants – 2
    • Minimum facility – £30,000
    • Maximum facility – £600,000

     

    Acceptable loan purposes:

    • Paying off the existing mortgage
    • Consolidating debts e.g. loans and credit cards
    • Helping friends and family
    • Property modifications
    • Lifestyle e.g. holiday or new car

     

    The following Loan to Value (LTV) lending limits apply:

     

     

    Max LTV bandings apply to both the Lump Sum and Future Release

    AGE
    (Youngest Applicant)

    LS1/FR1

    LS2/FR2

    LS3/FR3

    LS4/FR4

    LS5/FR5

    LS6/FR6

    55 11.80% 15.00% 20.10% 22.10% 22.80% 23.50%
    56 12.90% 16.10% 21.20% 23.20% 23.90% 24.60%
    57 14.00% 17.20% 22.20% 24.30% 25.00% 25.70%
    58 15.10% 18.20% 23.30% 25.30% 26.05% 26.80%
    59 16.20% 19.30% 24.30% 26.40% 27.15% 27.90%
    60 17.30% 20.40% 25.40% 27.50% 28.55% 29.00%
    61 18.40% 21.50% 26.50% 28.60% 29.55% 30.10%
    62 19.50% 22.60% 27.50% 29.70% 30.55% 31.20%
    63 20.50% 23.60% 28.60% 30.70% 31.50% 32.30%
    64 21.60% 24.70% 29.60% 31.80% 32.60% 33.40%
    65 22.70% 25.80% 30.70% 32.90% 33.70% 34.50%
    66 23.80% 26.90% 31.70% 33.90% 34.75% 35.60%
    67 24.90% 28.00% 32.70% 34.90% 35.80% 36.70%
    68 25.90% 29.00% 33.70% 36.00% 36.90% 37.80%
    69 27.00% 30.10% 34.70% 37.00% 37.95% 38.90%
    70 28.10% 31.20% 35.70% 38.00% 39.00% 40.00%
    71 29.00% 32.20% 36.70% 39.00% 40.05% 41.10%
    72 29.90% 33.10% 37.70% 39.90% 41.05% 42.20%
    73 30.80% 34.10% 38.70% 40.90% 42.30% 43.30%
    74 31.70% 35.00% 39.70% 41.80% 43.40% 44.40%
    75 32.60% 36.00% 40.70% 42.80% 44.35% 45.50%
    76 33.40% 37.00% 41.70% 43.80% 45.50% 46.50%
    77 34.30% 38.00% 42.70% 44.70% 46.50% 47.50%
    78 35.10% 38.90% 43.70% 45.70% 47.50% 48.50%
    79 36.00% 39.90% 44.70% 46.60% 48.25% 49.50%
    80 36.80% 40.90% 45.70% 47.60% 49.25% 50.50%
    81 37.60% 41.70% 46.50% 48.30% 49.75% 51.00%
    82 38.40% 42.50% 47.30% 49.00% 50.25% 51.50%
    83 39.20% 43.30% 48.10% 49.70% 50.85% 52.00%
    84 40.00% 44.10% 48.90% 50.40% 51.45% 52.50%
    85 40.80% 44.90% 49.70% 51.10% 52.05% 53.00%


    The rate of interest payable varies across the LTV groups. 

  •  

    MINIMUM / MAXIMUM PROPERTY VALUE

    Minimum property value – £100,000 (£150,000 on ex-Local Authority, ex-Ministry of Defence and ex-Housing Association properties)

    Maximum property value – £2,000,000

    The property must be the applicant’s main residence. For joint applications, it must the main residence for both parties.

    Joint applicants can be joint tenants or tenants in common.

    The property must be located in the UK, excluding Northern Ireland, Channel Islands and Isle of Man.

    Any additional occupants living in the property not named on the mortgage must sign a consent to mortgage form in all cases. This includes any adult children.

    The property must be either:

    • Unencumbered, or;
    • If an existing mortgage is in place, or if any other lending is secured against the property, this must be paid off using the proceeds of the new Lifetime mortgage


    EXAMPLES OF UNACCEPTABLE PROPERTY TYPES

    Property types which are not acceptable include:

    • Age restricted property e.g. retirement villages and sheltered housing
    • Property with more than 2 lodgers or tenants
    • Property subject to a trust
    • Property currently undergoing substantial alterations, extensions or repairs 
    • Property with a value less than £100,000
    • Ex-Local Housing Authority and Ministry of Defence property with a value less than £150,000
    • Property with a second charge e.g. right to buy, within pre-emption period, shared equity, shared Ownership, not acceptable if the applicant does not intend to pay off the second charge using the Lifetime mortgage
    • Property that is not the applicant's main residence. Includes entirely tenanted properties
    • Flats, caravans, crofted houses, park homes and maisonettes and log cabins
    • Leasehold and commonhold
    • Property intended for commercial purposes

    • Construction types which are not acceptable include:

    • Steel framed or steel clad property built before 2000
    • Large panel system (LPS) e.g. Bison, Bryant wall-frame
    • Pre-cast reinforced concrete e.g. Tarran pre-fabricated, Cornish unit, Cubbitt steel framed
    • Poured concrete e.g. Laing's Easiform or Wimpey no-fines
    • System built concrete
    • Cross wall construction
    • Vernacular construction materials e.g. Mundic concrete block or Norfolk clay lump
    • 100% timber construction e.g. Colt or Swedish timber
    • Timber framed property built between 1850 and 1965
    • Timber framed property with light weight cement render finish
    • Temporary style timber properties e.g. Canadian cedar wood, Norwegian log/timber frame, Colt or Swedish
    • Property subject to MMC guidelines e.g. Modular or SIPS
    • 100% flat roof
    • Construction of Roof is Thatch or Thatched roofing
    • Property with asbestos  roof coverings or similar composition roof tiles
    • New build or converted in last 10 years and has no warranty in place
    • Annex comprising of 50% of property 
    • Annex occupied by non-family member
    • Annex having separate council tax band
    • Listed as Grade I/II*in E&W or Grade A/B in Scotland

    • The following property circumstances would also be unacceptable:

    • Property deemed unacceptable by a valuer due to major restrictions to saleability or significant structural problems
    • Property having habitable space within 75m of pylons, over-head power cables or mobile phone masts
    • Property with spray foam insulation applied to the underside of the roof
    • Property with single skin brickwork where the single skin (primarily 4 ½” brick) comprises more than approximately 20% of the surface area of the external walls
    • Property with solar farms and wind turbines which are not primarily for the use of the property itself (i.e. must not be commercial in nature)
    • Property incorporating generation/distribution apparatus e.g. substations, masts and gas pipelines which are deemed commercial in nature
    • Property, including any outbuildings or garden land, that has flooded in the last 5 years or are threatened by coastal erosion. Properties will be assessed for flood risk at quote stage. If a property is assessed as being in a high-risk zone, it will be unacceptable
    • Property where underpinnings have taken place within the last three years
    • Property with over 20 acres of land (can refer for approval subject to no agricultural restrictions)
    • Property which has Japanese knotweed or other notifiable invasive plants are present
    • Property built on contaminated land
    • Property which has a service charge which exceeds 1.5% of property value
    • Property which has a resale fee which exceeds 3% of property value
    • Property served only by private water supply with no mains water supply
    • Property to be subject to partial Title split of family dwelling  
    • Property that is accessed via a long driveway that has not been maintained properly
    • Property that is subject to chancel liabilities or manorial rights entries
    • Property that may be impacted by major infrastructure projects
    • Property that has a private septic tank.

  • Interest rates effective from Friday 18th September 2020.

    We reserve the right to change our product rates at any time.

    All Lifetime products feature:

    • Free conveyancing
    • A free property valuation
    • £600 cashback toward independent legal fees
       

    Our Lifetime products are available for remortgage applications only.

    Code Customer Type Rate Min Loan Max Loan
    LS1

    (Remortgage)

    Lump Sum Only

    Fixed 2.86% £30,000 £600,000
    LS2

    (Remortgage)

    Lump Sum Only

    Fixed 2.95% £30,000 £600,000
    LS3

    (Remortgage)

    Lump Sum Only

    Fixed 3.05% £30,000 £600,000
    LS4

    (Remortgage)

    Lump Sum Only

    Fixed 3.15% £30,000 £600,000
    LS5

    (Remortgage)

    Lump Sum Only

    Fixed 3.39% £30,000 £600,000
    LS6

    (Remortgage)

    Lump Sum Only

    Fixed 3.71% £30,000 £600,000

    Please see ‘Early Repayment Charges’ tab for details of ERCs that apply.


  • Interest rates effective from Friday 18th September 2020.

    We reserve the right to change our product rates at any time.

    Code Customer Type Rate Min Loan Max Loan
    FR1

    (Existing Customer)

    Future Release Only

    Fixed 2.86% £30,000 £600,000
    FR2

    (Existing Customer)

    Future Release Only

    Fixed 2.95% £30,000 £600,000
    FR3

    (Existing Customer)

    Future Release Only

    Fixed 3.05% £30,000 £600,000
    FR4

    (Existing Customer)

    Future Release Only

    Fixed 3.15% £30,000 £600,000
    FR5

    (Existing Customer)

    Future Release Only

    Fixed 3.39% £30,000 £600,000
    FR6

    (Existing Customer)

    Future Release Only

    Fixed 3.71% £30,000 £600,000

    At the time of a future release we will re-assess the borrower’s LTV position. This will be calculated taking into consideration:

    • The existing mortgage balance
    • The new borrowing amount
    • Our assessment of the property value
       

    Please see ‘Early Repayment Charges’ tab for details of ERCs that apply.


  • ERCs are only applicable to the original capital balance, not accrued interest. After the mortgage term has been running for 10 years an ERC will no longer apply.
    A new 10 year ERC period will apply to each future release.

    Please see the table below for details:

    ERC Year ERC Rate Start Month End Month
    1 10% 1 12
    2 9% 13 24
    3 8% 25 36
    4 7% 37 48
    5 6% 49 60
    6 5% 61 72
    7 4% 73 84
    8 3% 85 96
    9 2% 97 108
    10 1% 109 120
    11+ N/A
    121 N/A

    In some circumstances, e.g. when porting, or where a borrower has moved into long term care, ERCs will not apply. Please refer to the Mortgage Illustration for details of any ERCs that apply.

important documents

Please ensure the following documents are provided to your clients at the start of the sales process

Customer Privacy Statement (PDF)

Lifetime Mortgage Customer Declaration (PDF)

Equity Release Council Statement of Principles (PDF)

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