Income Lifetime Mortgage

We’ve introduced a dual valuation approach

In light of the recent changes to lockdown measures in England, Wales and Scotland, we’ve introduced a dual valuation approach. For new applications you're now able to select the client’s preference for a physical or desktop on Apply Online. Read our property valuations article below for more information about this process and how this will affect our valuations.

For many people the most significant asset they own is their home. They then rely on their pension as a major source of income in retirement. However, for many people, the value of their pension may not be enough to provide them with a comfortable income in retirement.

Our Income Lifetime Mortgage lets your client release some of the money tied up in their home to provide a regular monthly income over a fixed term. The amount of monthly income, interest rate and the income term are all fixed at outset.

Tell your clients about our Income Lifetime Mortgage

To help you present the Income Lifetime Mortgage to your clients, we’ve prepared a marketing pack you can download and customise.

View - Marketing templates 

What is it?

A lifetime mortgage is a way of releasing money from your client's home without having to move. It’s a loan that’s secured against their home which can be used to provide an additional source of income in retirement.

With our Income Lifetime Mortgage your client can release some of the money tied up in their home to provide a regular income, over a fixed term. Your client must take an initial minimum loan of £2,500, followed by a minimum monthly income of £200 for a fixed term of 10, 15, 20 or 25 years.

The amount of monthly income and income term can't be changed once the mortgage has completed however should your client's circumstances change, they can choose to stop taking the income at any time. But, once stopped, the monthly income can't be restarted.

We charge compound interest. This means we’ll charge interest on the loan plus any interest already added. The effect of compound interest is reduced in comparison to other lifetime mortgages as funds are released in monthly amounts, rather than as a single upfront sum.

Once the fixed income term comes to an end, the monthly income will stop, but interest will continue to roll up until the lifetime mortgage is repaid. The lifetime mortgage is usually repaid from the sale of your client's home when they, or the remaining applicant (if the mortgage is in joint names) dies or moves out of their home into long term care.

Client's will have to pay an arrangement fee on all Income Lifetime Mortgages.

Lifetime mortgage FAQs