Lifetime Mortgages in London

To qualify for a lifetime mortgage, you need to be at least 55 years old and own a property that meets the lender’s criteria. The property must be your main residence and in good condition. Lenders often require a minimum property value, usually £70,000 or higher, depending on the area and type of home. For leasehold properties, a minimum lease term of 75–85 years is typically required.

The amount you can borrow depends on several factors, including your age, property value, and health. Generally, older homeowners can access a higher percentage of their property’s value. Most lenders offer between 20% and 50%, with some providing enhanced terms for those with certain health conditions. A mortgage advisor in London can assess your specific situation and provide tailored guidance on the borrowing amount available to you.

Yes, you remain the legal owner of your home with a lifetime mortgage. The loan is secured against your property, but ownership stays with you. The loan, along with any accrued interest, is repaid when the property is sold, allowing you to live in your home for as long as you wish.

If you move into permanent long-term care, the loan and any accumulated interest are usually repaid through the sale of your property. For joint applicants, the surviving partner can remain in the home until they also pass away or move into care. Any remaining equity after repayment becomes part of your estate. A mortgage advisor in London can help you understand the implications for your circumstances.

Most Lifetime Mortgages in London include a “no negative equity guarantee,” which ensures that you or your estate will never owe more than the value of your property when it’s sold. This provides peace of mind, protecting your family from financial burden even if property values fall or interest accumulates significantly.

Yes, many lifetime mortgages allow for early repayment, although there may be early repayment charges. Some lenders offer flexibility for partial repayments without penalties, enabling you to reduce the balance and interest over time. Discussing your options with a mortgage broker in London can help you understand the best course of action.

Most lifetime mortgages do not require monthly repayments, as the balance and interest are settled when the property is sold. However, some plans offer voluntary repayment options, allowing you to pay the interest or part of the loan during your lifetime. This can help manage the overall balance and preserve more of your property’s equity.

Taking out a lifetime mortgage reduces the amount of equity available in your property, which may impact the inheritance left to your beneficiaries. Some plans include inheritance protection, allowing you to safeguard a portion of your property’s value. A mortgage advisor in London can help you choose a plan that aligns with your financial and inheritance goals.

Yes, leasehold properties are eligible for lifetime mortgages, provided they meet certain conditions. The lease must usually have a minimum term of 75–85 years remaining. If the lease is shorter, you may need to extend it before applying, which can involve additional costs. A mortgage broker in London can guide you through the process and advise on the requirements.

Lifetime mortgages typically involve several fees, including valuation fees, legal costs, and arrangement fees. Some lenders allow these to be added to the loan amount, while others may require payment upfront. Your mortgage advisor in London will provide a clear breakdown of all costs and help you plan accordingly.