Lifetime Mortgages

A lifetime mortgage is the most common form of equity release. It allows homeowners aged 55 or over to borrow against the value of their home while retaining ownership. The loan, plus interest, is usually repaid when the property is sold, typically when you pass away or move into long-term care.

Interest is charged on the amount borrowed and can either roll up over time or, in some cases, be partially or fully repaid to control the balance.

Lifetime mortgages may offer features such as:

• Optional monthly or ad hoc interest payments
• Fixed or capped interest rates for life
• The ability to draw funds in stages
• Portability if you move home
• The no negative equity guarantee

The amount you can release depends on factors such as age, property value, and product type. Because interest can compound over time, the total amount owed can increase significantly.

A lifetime mortgage should be considered carefully alongside other options, such as downsizing or using savings.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

Home Reversion Plans

A home reversion plan allows you to sell all or part of your home to a provider in return for a tax-free lump sum or regular income, while retaining the right to live in the property rent-free for the rest of your life.

You will not own the part of the property that has been sold, and the provider will receive their share of the proceeds when the property is eventually sold.

Key features of home reversion plans include:

• Selling a percentage of your home below market value
• Guaranteed right to remain in the property for life
• No interest charged on the funds received
• Reduced value of your estate
• Limited availability compared to lifetime mortgages

Home reversion plans are less common than lifetime mortgages and are usually considered where certainty is preferred over flexibility.

Because you are giving up ownership of part or all of your home, it is important to understand how this will affect your estate and future options.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

Later Life Lending

(Including Retirement Interest-Only Mortgages – RIO)

Later life lending includes mortgage options designed for older borrowers who wish to continue making repayments into retirement. A common example is a Retirement Interest-Only (RIO) mortgage.

With a RIO mortgage, you make monthly interest payments, and the capital is repaid when the property is sold, usually when you move into long-term care or pass away.

Later life lending may be suitable for those who:

• Have a reliable retirement income
• Wish to manage interest costs
• Want to preserve more inheritance
• Prefer a traditional mortgage structure
• Do not wish to release equity immediately

Lenders assess affordability based on pension income and other retirement income sources. Property criteria and age limits vary by lender.

Later life mortgages can offer flexibility, but they still represent a long-term commitment and should be reviewed carefully.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.