A later life mortgage is a loan against the home for over 55s. Our later life mortgages are made up of Lifetime Mortgages and a Retirement Interest Only mortgage. 

More people are using later life mortgages as part of their retirement planning. This isn’t surprising. A later life mortgage can support your clients’ retirement plans in a number of ways. It maybe used to provide a more comfortable retirement, or instead of taking income from pensions. This could mitigate income tax and reduce any tax payable on death.

A later life mortgage can help transfer money to children or grandchildren, perhaps to help buy a first home, or even pay off your client's existing mortgage. It can act as a backstop in case of unexpected expenses, or be used to fund care costs. It can even help if couples separate or divorce in later life.

Our Flexible Lifetime Mortgage provides a lump sum without the need to make any regular payments. Our Optional Payment Lifetime Mortgage gives your clients the flexibility to pay some or all of the monthly interest – but it’s not compulsory; while our Retirement Interest Only Mortgage is designed for clients who commit to pay all of the monthly interest.

Energy Saver Cashback offer

Helping your clients

We’ll provide 10% cashback on the total cost of home energy efficiency improvements, up to £1,000 on an initial advance or £200 on a lifetime mortgage drawdown.

ESC offer promo

 

 

New to Legal & General?

Register for our Later Life Mortgages Portal to quote on our products.

Adviser with client

 

 

Marketing templates

Download useful templates for posters, letters and emails to help save you some valuable time while you build your business.

Use our templates

Compare our later life mortgages

Lifetime mortgages and retirement interest-only mortgages may appear similar, but it's important to understand the differences between each product. We've pulled out some of the key points below.

  Our Lifetime Mortgages Our Retirement Interest Only Mortgage
Age 55+ 55+
Minimum loan amount £10,000 £10,000
Maximum loan amount Determined by your client's age and property value Up to 60% of the value of your client's home, subject to an affordability assessment
Minimum property value considered £70,000 or £100,000 for flats, maisonettes, ex council, ex housing association or ex Ministry of Defence properties. £70,000 or £100,000 for flats, maisonettes, ex council, ex housing association or ex Ministry of Defence properties.
Is there an affordability assessment? No Yes
Is the loan secured against your client's home? Yes Yes
When do I have to repay the full amount of the loan? The loan is usually repaid when your client dies or move out of their home into long-term care. The loan is usually repaid when your client dies or move out of their home into long-term care.
Do they have to pay interest every month? No - interest is charged on the loan amount plus any interest already added, so the amount owed will increase quickly over time. However, they can choose to pay off some or all of the monthly interest to prevent this. Yes - the interest due is payable in full by them each month. As a last resort, their home may be repossessed if they fail to keep up repayments.
Is the interest rate fixed? Yes. The interest rate is fixed for the life of the loan. Yes. The interest rate is fixed for the life of the loan.
  Lifetime Mortgages Retirement Interest Only Mortgage

A mortgage may affect means-tested state benefits, your client's tax position and any future inheritance.

Events

At Legal & General, your development matters to us. We offer a series of CPD accredited events and workshops that support you in understanding the changing face of retirement.

Women on a laptop

Vulnerable customers

We've outlined some key signs of helping vulnerable customers when giving financial advice.

Latest articles

Man with solar panels

We've enhanced our Energy Saver Cashback offer

Did you know your clients could earn up to £1,000 cashback on certain energy efficient home improvements?

Houses birds side view

The rise of the asset-affluent

The UK is famously a nation of proud homeowners. Buying, renovating, redecorating and selling property might as well be a national pastime. Still, there’s one element of homeownership which we seem uniquely squeamish about discussing: using a home in retirement planning.

Family with bubbles

How a Midlife MOT can strengthen your client relationships

Your client’s midlife can be an exciting time. That’s why we’ve created our Midlife MOT with The Open University.