Important information
Royal London has chosen to introduce its customers to the experts at Royal London Equity Release Advisers. They will provide advice on equity release products from across the whole market and will make a recommendation to you based on your personal circumstances.
You will not receive advice or any recommendation from Royal London. The information on this page has been provided by Royal London Equity Release Advisers to help you understand more about releasing equity.
Why choose Royal London Equity Release Advisers
Whole of market advice comparing different mortgage products
You still own 100% of your home
No-obligation advice and no fees unless a mortgage is taken out
What is a Lifetime Mortgage?
Lifetime Mortgages are a type of equity release product that could help you unlock some of the value held in your home without having to move out. If you're a UK homeowner aged 55 or over, you could use a Lifetime Mortgage to help fund life in retirement, pay off an existing mortgage or help achieve your financial goals.
There are many different flexible features available that can help to create a plan tailored for you. You can discover more and explore whether it could be right for you here.
How do Lifetime Mortgages work?
They work by helping you to convert the equity in your home into tax-free cash that could be used in a variety of ways. In some ways they are similar to the kind of mortgages you might have used to buy your home, in that it is secured against your home's value.
However, Lifetime Mortgages differ in some key ways:
- You can choose how and when to make payments, or make none at all.
- The amount borrowed, plus interest, isn't paid back until the last homeowner dies or enters long-term care.
The flexibility that a Lifetime Mortgage offers could make it an ideal option for you to achieve your goals.
What are your Lifetime Mortgage options?
There are more than a thousand Lifetime Mortgage products available and a variety of flexible features. You can broadly group the available products into two categories:
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Lump Sum Lifetime mortgage
Release a one-off tax-free cash lump sum from the value of your home. This option comes with a fixed interest rate for life and comes with the guaranteed right to make optional payments within your lifetime.
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Drawdown Lifetime Mortgage
Release an initial tax-free sum from the value of your home and enjoy the same features as the lump sum option. You can then place a further amount of equity into an interest-free reserve. You will only be charged interest on funds that have been taken out of that reserve. The interest will be fixed at the prevailing rate at the time which may be higher or lower than your initial release.
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Never owe more than your home is worth
With a no-negative equity guarantee as standard.
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You have the guaranteed right to move home
You have the right to move and take your Lifetime Mortgage with you, subject to lender criteria.
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The right to make optional payments is guaranteed
The amounts may vary between lenders.
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Fixed interest
The interest rate charged can be fixed for life.
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Security assured
And you will have the right to remain in your home for life, until the last homeowner either dies or moves into long-term care.
Find out how much equity you could unlock
Royal London Equity Release Advisers' calculator can tell you how much cash you could unlock from your home through a Lifetime Mortgage. Afterwards, you will be sent a clear guide that explains how Lifetime Mortgages and other financial products work, including how borrowing from your home will reduce the value of your estate and potentially affect your entitlement to means-tested benefits.
Want to speak with someone straight away? Get in touch with the Information Team today or schedule a callback.
Who can get a Lifetime Mortgage?
You could be eligible for a Lifetime Mortgage if you meet these conditions. Please be aware that if you apply, lenders may require it to be for your main residence.
You’re aged 55 or over
You own a UK home worth at least £70,000
You need to be able to repay any existing mortgage
What are the costs for a Lifetime Mortgage?
If you’re considering a Lifetime Mortgage, the best way to understand the costs is to speak with Royal London Equity Release Advisers. They can provide you with a personal illustration. However, some of the costs you can expect to encounter when applying are:
- A valuation fee: You may have to pay to get your home valued so the lender can give you an accurate offer.
- Legal fees: You will also need to speak with a solicitor which may come with fees. They will ensure you fully understand the paperwork.
- An advice fee: Royal London Equity Release Advisers will charge an advice fee of £1,690 only if you take out a mortgage with their help.
For more information about fees, charges and other costs, read the guide on how much equity release costs.
Lifetime Mortgages in practice
Here’s an example of how a Lifetime Mortgage could help you to achieve your goals.
Mr. Atkinson wanted to fund improvements to his home.
- He is aged 67.
- His home is worth £150,000.
- He needs £20,000 to help fund an extension and future-proof his home.
After an advice appointment with Royal London Equity Release Advisers, it was recommended that Mr. Atkinson consider a lump sum solution as he needed access to immediate cash to get the work started.
The interest rate was 6.2%. If he goes ahead with this option, and made continuous monthly payments of £50 over that period, he would owe approximately £35,000. If he instead chose to make no payments, he would owe approximately £49,000 after 15 years.
In this case, a Lifetime Mortgage can help the home pay for its own improvements and potentially increase its value. With this, and potential payments, a lot of equity can remain in your home.
This is an illustrative example of the potential costs. Available interest rates will be based on your personal circumstances and is best determined with the help of an adviser.
Is a Lifetime Mortgage right for you?
You should always get advice on your options. In fact, it's a Financial Conduct Authority requirement to receive qualified advice before you can release equity with a Lifetime Mortgage. There are many benefits to speaking with an adviser:
- Get to know how a Lifetime Mortgage could work in your personal circumstances, finding a product tailored to you.
- Speak with an expert that has your wellbeing in mind. They will give you more information and tell you if a Lifetime Mortgage isn’t the right choice.
- Have the opportunity to compare a range of available products and feel confident that a variety of options have been considered to help you achieve your goals.
- Understand the long-term impacts of a Lifetime Mortgage, including how it will reduce the value of your estate and potentially affect your entitlement to means-tested benefits.
- With Royal London Equity Release Advisers, how you receive advice is up to you. You can choose face-to-face in the comfort of your home, or arrange for a telephone/video call.
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Speak with the team
Contact Royal London Equity Release Advisers to schedule a no-obligation appointment with a fully qualified equity release adviser.
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Explore your options
Your adviser will get to know you and your personal goals, so they can assess which type of product is right for you.
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Find the right product
Your adviser will research what products are available to you and suggest the option that best suits your needs.
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Start your application
If you’re happy to apply for a product, your adviser will help you fill out your application.
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They'll keep helping you
Your adviser will check in at every key step of the process. They'll also keep in touch to make sure your mortgage continues to meet your needs.
Other mortgage products
Royal London Equity Release Advisers aim to find the best solution for your needs. Their advisers will take the time to explore a wide range of products and weigh up the benefits of each before making a recommendation for your circumstances.
Talk to the Royal London Equity Release Advisers Information Team
If you need help or want to ask a question, you can call them on
0800 023 9311
Lines are open Mon 08:30am to 6pm and Tues to Fri 08:30am to 5:30pm (excluding bank holidays).
Discover more about equity release
“Royal London Equity Release Advisers” is a trading name of Responsible Life Limited. Responsible Life Limited uses Royal London branding under licence from Royal London Marketing Limited. “Royal London”, the “Royal London logo” and “Royal London Equity Release” are registered trade marks of The Royal London Mutual Insurance Society Limited. Royal London Marketing Limited and The Royal London Mutual Insurance Society Limited do not provide regulated mortgage advice.
Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 610205. Registered in England and Wales under company number 07162252. Registered office: Princess Court, 23 Princess Street, Plymouth PL1 2EX.
Responsible Life Limited is a wholly owned subsidiary of the Royal London Group who may benefit if you choose to take regulated mortgage advice. Being a wholly owned subsidiary of the Royal London Group does not alter Responsible Life Limited’s regulatory responsibilities.
If you choose a mortgage with required payments during your lifetime then your home may be repossessed if you do not keep up with the payments. Borrowing with a Lifetime Mortgage or Retirement Interest-Only Mortgage will reduce the value of your estate. Receiving a cash lump sum may also affect your entitlement to means-tested benefits. Think carefully before securing other debts against your home.
To understand the features and risks, ask for a personalised illustration. Your adviser will talk through the setting up costs of a mortgage. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,690.