top of page
Mortgage Broker Brentwood, Essex

OUR LATEST NEWS

MORTGAGE BROKER BLOG

Lifetime Mortgages FAQS

  • Writer: MRG
    MRG
  • Nov 15, 2024
  • 3 min read

Lifetime Mortgage Broker Kent

A Lifetime Mortgage is a mortgage that is designed for borrowers over the age of 55 to borrow against the value of their home. This mortgage gets repaid when the borrower goes into long-term care or passes away. Learn more >

 

Lifetime Mortgages FAQS


How much can I borrow with a Lifetime Mortgage?

If you are 55, then the maximum you can borrow is 23% of your property value on a Lifetime Mortgage. The older you are, the more you can borrow (always based on the youngest applicant – if it’s a joint mortgage). Once you get up to age 90, the borrowing amount is 55% of the property value. If you have health conditions, this may increase the amount that you can borrow.

How much deposit do I need for a Lifetime Mortgage?

The minimum deposit for a Lifetime Mortgage depends on your age, if you are 55 then the deposit will be quite high, around 77%. If you are 90+ then the deposit will be around 45%. The more deposit that you keep in your property, the better the terms of the products that will be available to you.

Can I get interest-only on a Lifetime Mortgage?

Yes. A Lifetime Mortgage is usually offered on an interest only basis. The mortgage is designed to be repaid when you die or go into long-term care.

What’s the process to apply for a Lifetime Mortgage?

To apply for a Lifetime Mortgage, the main steps would involve:


  • Initial enquiry.

  • Agreement in principle.

  • Mortgage application (borrower checks, valuation etc)

  • Mortgage offer issued.

  • Solicitor progression.

  • Completion and release of funds.

Can I apply for a Lifetime Mortgage if I’m only receiving my state pension?

Yes. There are no minimum income requirements for a Lifetime Mortgage as it is redeemed upon your death or if you go into long-term care. If it is a joint mortgage, it will be based on the last person to die or go into long-term care.

What can I use the money for if I take out a Lifetime Mortgage?

Lifetime Mortgage providers will allow borrowing for most legal purposes so you can spend the money on holidays, modifications to your home or even a gift to a family member to help them get on the property ladder.

What documents do I need to provide to apply for a Lifetime Mortgage?

Lifetime Mortgage documents that may be requested include:


  • Proof of ID & current address

  • Bank statements

  • Income confirmation

Can I get a Lifetime Mortgage with bad credit?

As with most forms of borrowing, having adverse credit can have an impact on; either your ability to obtain finance, or the terms that are available to you. A Lifetime Mortgage is no different in this regard, however, there are lenders that will consider adverse credit as the mortgage is paid when you die, or go into long-term care, so it is less risk that the mortgage will go into default.

Can I have monthly payments on a Lifetime Mortgage?

Yes. There are Lifetime Mortgage lenders who will allow you to make payments, either on an ad-hoc basis or regular payments.

Are there any alternatives to a Lifetime Mortgage?

Yes. There are lots of alternatives Lifetime Mortgages, some of these include standard mortgages where the lender will consider lending into retirement and ‘Retirement Interest Only’ mortgages (also called ROI) A good adviser will take you through all of the alternatives before recommending a Lifetime Mortgage.


Book A Call To Discuss Lifetime Mortgages


If you have an enquiry and would like to discuss Lifetime Mortgages in more detail, please get in touch or schedule one of our Lifetime Mortgage broker experts to give you a call.




At MRG Private Clients, we believe in providing our clients with personalised guidance and support when it comes to making important financial decisions. We are based in Medway, Kent but offer our specialist mortgage services nationwide. Learn more about our specialist mortgage services >

Comments


Lifetime Mortgages, Contractor Mortgages, Property Development Finance in Kent

MRG Private Clients LTD is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 797843. The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages. As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments. A lifetime mortgage will be secured against your home. Think carefully before securing other debts against your home.

MENU

CONTACT

MRG Private Clients, First Floor, Kings House, 101-135 Kings Road, Brentwood, CM14 4DR

SUBSCRIBE

© MRG Private Clients LTD 2025 (Registered in England No. 07837151)

bottom of page