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.

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. If you're a 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 two types of Lifetime Mortgage you could be eligible for. It’s worth comparing their individual options, terms, and conditions to help you make the right choice for your needs. 

 

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.

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.

Who can get a Lifetime Mortgage?

You can apply for a Lifetime Mortgage if you meet these conditions. Please be aware that if you apply for a Lifetime Mortgage, lenders may require it to be for your main residence.

You’re aged 55 or over

You own a home worth at least £70,000

You’d like to borrow at least £10,000

How do Lifetime Mortgages work?

No matter what type of Lifetime Mortgage you choose, there are a few standard features and guarantees you should think about when making your decision.

  • You’ll still own 100% of your home and can move to a new property if it meets lender criteria.

  • The amount borrowed plus interest is only paid back when the last homeowner dies or enters long-term care.

  • Monthly repayments are optional, and your interest rate is fixed for life.

  • With a 'no-negative equity' guarantee, you will never have to repay more than your home is worth.

  • There is the option to choose fixed early repayment charges, so there are no surprise costs for making additional payments.

Important things to know

  • Lifetime Mortgages will reduce the value of your estate and could affect your entitlement to means-tested benefits.
  • As part of your application, you might need to pay to have your property valued, and other associated costs.
  • You may also have to pay an application fee and there will be an advice fee payable to Royal London Equity Release Advisers if you take out a Lifetime Mortgage.

Lifetime Mortgage fees and charges

As part of your Lifetime Mortgage application, there are a few fees and charges you might need to pay.

  • Property and legal fees

    You'll need to think about property valuation fees, solicitors fees and lender application fees. If you're buying a property, you might have to pay stamp duty and conveyancing fees.

  • Advice fee

    If you enquire with Royal London Equity Release Advisers, there's also an advice fee. It will be no more than £1,690, and will only be charged if you take out a mortgage product. By offering a capped fee instead of a percentage of the amount borrowed, you won't pay more if you want to borrow more. You can either add your advice fee to the amount you borrow or pay it up front.

For more information about fees, charges, and other costs, read their guide How much does equity release cost?

 

Find out how much cash 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, they will send you a clear guide that explains equity release, so you can decide if you want to proceed.

How to apply for a Lifetime Mortgage

If you're happy with your calculation, you can start the process by speaking with the UK-based information team at Royal London Equity Release Advisers. Once you book in an appointment, their advisers will be able to help you at every step of the way.

Speak with the team

Contact Royal London Equity Release Advisers to schedule a no-obligation appointment with a fully qualified equity release adviser. They'll answer any questions you have.

Explore your options

Your adviser will get to know you and your personal goals, so they can assess which type of equity release product is right for you.

Find the right product

Your adviser will research all the suitable equity release products on the market and suggest the options that suit your needs.
 

Start your application

If you’re happy to apply for a product, your adviser will help you fill out your application. It’ll also be checked by a second qualified expert before it’s sent off.

They'll keep helping you

After you apply, your adviser will check in at every key step of the process. They'll also contact you after a year to see if you're still happy with your product.

Contact Royal London Equity Release Advisers to find out more or start the process

Royal London Equity Release Advisers' Information Team is here to support you at every step. You can contact them to ask any questions you have about equity release, or you can schedule a no-obligation appointment with them to discuss your options in more detail.

Get in touch with the Royal London Equity Release Advisers Information Team

0800 023 9311

Mon to Fri: 9am-8pm. Sat: 9am-5pm, excluding bank holidays. 
 
Alternatively, if you prefer, you can schedule an appointment for their Information Team to call you back.

 

 

More equity release options and guides

“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.