L&G Lifetime Mortgage: A Comprehensive Guide

A Lifetime Mortgage from Legal & General (L&G) can provide a lump sum or regular payments to homeowners aged 55 and above, while allowing them to retain ownership of their property.

The minimum age requirement to apply for an L&G Lifetime Mortgage is 55, and there is no maximum age limit.

To qualify, you must own your home outright or have a small mortgage balance, which can be paid off using the lump sum from the Lifetime Mortgage.

You can borrow up to 45% of your home's value, up to a maximum of £625,000.

A Lifetime Mortgage is a type of equity release that allows you to release tax-free cash without moving out. You can take the money as a lump sum or a series of lump sums, depending on your needs.

You can borrow money using a Lifetime Mortgage if you're 55 or over, or 50 for our Payment Term Lifetime Mortgage. This loan doesn't have to be fully repaid until you die or move permanently into long-term care.

You can choose to pay off some or all of the monthly interest if you have the financial means, which would reduce the amount of interest added over the life of the mortgage and reduce the amount you'll owe in the end.

A Lifetime Mortgage is a loan against the value of your property, and the older you are and the greater the value of your property, the larger the sum that can be borrowed.

A lifetime mortgage from L&G can be a great way to access some much-needed cash, but it's essential to consider both the pros and cons.

You can take a lump sum in one go or as a series of smaller lump sums when it suits you, tax-free.

One of the biggest benefits is that you can use the money you release for anything you want, whether it's home improvements, helping children buy their first property, or increasing your income in retirement.

There's also the option to repay some or all of the interest, or even part of the original loan, if you prefer.

With an L&G lifetime mortgage, you don't need to downsize and can stay in your home until you die or move permanently into long-term care.

You can still move house, so long as the new property is acceptable to L&G.

However, it's worth noting that releasing equity with a lifetime mortgage can reduce how much you can leave as an inheritance, even with L&G's Inheritance Protection option.

Additionally, if you gift the money, the recipient may need to pay inheritance tax in the future.

Here are some key points to consider:

To get started with a Lifetime Mortgage, you'll need to be at least 55 years old and own your home, either fully or partially. You can't arrange a Lifetime Mortgage yourself, so you'll need to seek specialist equity release advice.

You'll also need to get legal advice, which is a crucial step in the process. A specialist adviser will assess whether equity release is suitable for you and guide you through the next steps.

You can compare and research different providers to find the best fit for your needs, but be aware that Lifetime Mortgages can be complex products with many factors involved.

To get started with a lifetime mortgage, you'll need to find a provider. There are many providers that offer lifetime mortgages, but you can't simply arrange one yourself due to their complexity.

You'll need to seek specialist equity release advice, which will help determine if a lifetime mortgage is suitable for you. If the adviser thinks it is, you can proceed with the application.

You'll also need to get legal advice to ensure everything is in order. This is a crucial step in the process.

You can compare and research different providers to find the one that best suits your needs. However, the eligibility criteria for a lifetime mortgage are set by each lender, so be sure to check these carefully.

Here are some common eligibility criteria to look out for:

A drawdown lifetime mortgage can be a more suitable option if you don't need a large lump sum.

You can take regular or occasional small amounts from the loan, which can help limit the amount of interest you pay overall.

The money paid to you is tax free, regardless of whether you take a lump sum or use the drawdown option.

Drawdown plans usually provide a small lump sum payment at the outset and hold the remainder of the loan in reserve.

You're only charged interest on the element of the loan that you've already drawn down, which can often be the most efficient plan.

However, keep in mind that there may be drawdown limits and fees attached to your loan.

So, you're considering an L&G Lifetime Mortgage and want to know how to compare your options. Let's break it down.

You can borrow more if you're the sole borrower, but if you're applying with a partner, you'll need to enter the age of the youngest applicant.

Here are the key differences between L&G's Lifetime Mortgage options:

You'll need to repay the loan when you die or move out of the home and go into long-term care.

When considering a Lifetime Mortgage, it's essential to understand the costs involved. These can be significant, so it's crucial to factor them into your decision.

Fees for advice from an adviser with an equity release qualification are typically required, although some organisations, like StepChange, offer free advice.

Paying for independent legal advice is also necessary, as it provides a clear understanding of the terms and conditions of the mortgage.

An arrangement fee, a completion fee, and a valuation of your property are other costs you may need to pay.

It's worth noting that some organisations may offer free advice, which can help reduce upfront costs.

If you're considering an L&G Lifetime Mortgage, you'll want to know about the different options and alternatives available. L&G Lifetime Mortgages can be taken out from the age of 55, with a minimum property value of £70,000 or £100,000 for certain types of properties.

You can choose from three different types of L&G Lifetime Mortgages: Interest Roll Up, Optional Payment, and Payment Term. Each type has its own unique features, such as the minimum initial lump sum required or the maximum loan amount.

One thing to keep in mind is that you'll still own your home with an L&G Lifetime Mortgage. This means you can continue to live in your property and enjoy its benefits. However, as with any loan, you'll need to consider the potential risks, such as owing more than the home is worth.

A key feature of L&G Lifetime Mortgages is the No Negative Equity Guarantee, which ensures that you'll never owe more than the value of your home. However, this guarantee may not apply to missed monthly interest payments.

If you're considering paying off an L&G Lifetime Mortgage early, be aware that you may face an early repayment charge. It's essential to review your loan terms and conditions before making any decisions.

If equity release isn't the right option for you, there are other alternatives to consider. For example, you could downsize to a cheaper property or explore other options, such as remortgaging to release equity.

Here are the key features of the three L&G Lifetime Mortgages:

Ultimately, the right option for you will depend on your individual circumstances and needs. Be sure to carefully review the terms and conditions of any loan before making a decision.

Interest and rates are a crucial part of the L&G Lifetime Mortgage. Interest is added to the loan amount each month, or year, depending on the lender, and the outstanding balance is only repaid when the property is eventually sold.

The interest rates on lifetime mortgages are fixed for life and calculated daily, rather than monthly. This means that the interest is compounded, making you pay interest on top of both the original loan and the interest already charged.

Many L&G Lifetime Mortgage options offer the opportunity to make occasional lump sum repayments, often from just £500 upwards, which can help keep the loan balance under control. This flexibility can be a big plus for those who want to manage their debt without making monthly payments.

This option is particularly popular among retired homeowners on a fixed pension, as it means no monthly payments to the lender.

Interest is added to the loan amount each month, or year, depending on the lender, and the outstanding balance is only repaid when the property is sold.

A financial adviser can show you what the eventual debt may be, based on average life expectancy, since interest rates are typically fixed for life.

Many rolled-up interest Lifetime Mortgages offer the opportunity to make occasional lump sum repayments, often from as little as £500 upwards.

This can be a great way to keep the loan balance under control, while still allowing flexibility over how much to repay, and how often.

Lifetime mortgage interest rates are fixed for the full length of the mortgage, calculated daily rather than monthly. This means you'll pay interest on top of both the original loan and the interest already charged.

Compounded interest is a type of interest that makes your debt grow faster over time.

Fixed interest rates on lifetime mortgages are broadly similar to other retirement lending products, such as RIO mortgages.

Specialist providers like Aviva, Legal & General, and Canada Life offer equity release products, such as lifetime mortgages.

These companies are often not the major banks and building societies you might expect, but they do provide a wide range of deals.

It's a good idea to speak to an equity release specialist to find the best deal for your circumstances, as they have access to thousands of deals.

We've been recognized for our excellence in the industry, and it's a great feeling to be acknowledged by our peers. Moneyfacts awarded us Best Equity Release Provider in 2024.

This award is a testament to our commitment to providing top-notch services to our customers. We're proud to have received this recognition.

Our team works hard to ensure that our customers receive the best possible experience, and it's great to know that our efforts haven't gone unnoticed.

Specialist companies often provide equity release products, such as lifetime mortgages, rather than major banks and building societies.

Aviva, Legal & General, and Canada Life are examples of specialist later life lending companies that offer equity release products.

There is still plenty of competition in the equity release market, with thousands of deals available.

You can choose to make regular payments towards the interest on your Lifetime Mortgage with a Retirement Interest Only option.

Some lenders allow you to set a regular payment amount that's as low as £25 monthly.

You can pay back as much or as little of the interest as you like, making it a flexible option.

Any interest that's not paid back will start to 'roll-up', just like with a roll-up interest plan.

This means you can set a payment amount that feels comfortable and affordable for you.

You can pay off a lifetime mortgage early, but be prepared for an early repayment charge from the lender.

The good news is that you have options when it comes to repaying your lifetime mortgage. You can choose to roll-up interest or make consistent regular payments as an interest-only Lifetime Mortgage.

Paying off your lifetime mortgage early can save you thousands of pounds in interest over the long term.