Tax-free cash, with optional payments
Our Optional Payment Lifetime Mortgage, a type of equity release, is a loan secured on your home which allows you to borrow against the value of your home while continuing to live there. You get a tax-free cash sum, and could reduce cost by making monthly interest payments. You can stop interest payments at any time, but you won’t be able to restart them.
This could be one solution if you‘re approaching the end of an interest-only mortgage and need to repay it. You may need to pay an early repayment charge to your lender.
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
- Am I eligible?
You must be 55 or over and living in (or buying) your own home, with either a small or no mortgage. Your home will need to be worth a minimum of £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties.
I have an Interest Only Mortgage
If you have an existing interest-only mortgage that’s coming to an end and you can still make Monthly Interest Payments, then an Optional Payment Lifetime Mortgage or Retirement Interest Only mortgage could be for you. With our Optional Payment Lifetime Mortgage you can choose to pay all or some of the monthly interest for the rest of your life, or until you decide to stop (any unpaid interest is added to the amount you owe).
I want to take lump sums
Optional Payment Lifetime Mortgage lets you take a one off lump sum, or smaller amounts as and when you need them. You can borrow a minimum of £10,000 in your first release and then future lump sums of at least £1,000 each time.
I want some flexibility later
If you want the option to release more equity in the future, then an adviser can help you achieve this with a lifetime mortgage. 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.
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.
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.
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.
Equity release calculator
This calculator helps you see how much equity you could release with a lifetime mortgage, a loan secured against your home. We’ll ask you to register your details so we can show you the calculation. You may also receive a call from us to assist you with your enquiry.
Get in touch about our lifetime mortgages
Monday to Friday 9:00am - 6:00pm
Saturday 9:00am - 1:00pm
We may record and monitor calls.
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Equity Release Council
Legal & General Home Finance Ltd is a member of the Equity Release Council, a trade body setting standards for providers.
Our Payment Term Lifetime Mortgage doesn't fully meet the Equity Release Council standards, because as a last resort, your home may be repossessed if you do not keep up with monthly interest payments, which isn't within their standards. Once you've reach the end of your payment term then your Payment Term Lifetime Mortgage complies with their standards.
Take a look at their consumer brochure for more details
Contact us about equity release
Call us on:
Monday to Friday 9am - 6pm,
Saturday 9am - 1pm.
We may record and monitor calls.
For any other enquiries please get in touch via our contact us page.
Get independent advice
You can't take out an equity release product unless you have taken financial advice.
Find out how to access independent legal and financial advice.