Later Life Lending

Aged 55 or older? We've got you covered. However much you’ve prepared or are preparing for retirement, we know that a little extra goes a long way. That’s why we’ve put together a guide on Later Life Lending. Later Life mortgages are available for new and existing customers, whether you’re looking to move home or stay put.

What is later life lending?

We’re here for you. We understand that making the most of your retirement is important to you. Some Later Life Lending solutions will allow you to take advantage of the value you’ve built up in your home. This may be ideal if you are aged 55 or older and looking for different borrowing options to suit your future plans. 

You could lose your home if you don’t keep up your mortgage repayments

Later Life Lending Options

Standard Mortgage:

  • Fixed term mortgage – take comfort in knowing it will be paid off at the end of the term
  • There’s a range of options available – you might want to pay a part off the loan each month so it’s fully repaid by the end, or choose to pay only interest each month and you then repay the amount you’ve borrowed at the end of the agreed term 
  • You will need to be able to show you can afford to make the monthly repayments from your earned income or pension for the full term


Retirement Interest Only (RIO)

  • Pay monthly interest only. Borrow against your property, but only pay back the interest – not the loan itself, meaning the amount you owe won’t increase over time
  • As you only pay off the interest on this type of mortgage, your payments may be lower than a typical mortgage
  • No fixed end date, but the mortgage will have to be repaid, usually through it being sold, if you pass-away or move into long term care, meaning you may not be able to leave it to your family.

Equity Release – Lifetime Mortgage

  • Release some of your home value – benefit while still being the owner of your home
  • The cash released is tax-free. Use the money as you please – help friends and family, pay off an existing mortgage or even home improvements
  • You don’t need to repay your loan during your lifetime and you can choose whether to pay the interest each month or let it roll-up.
  • The loan plus any outstanding interest (if you decide not make payments towards the loan) are then repaid when you (or last remaining applicant) either passes away or moves into long term residential care - this could mean there is less value available in the home for you to leave as inheritance

Equity Release – Home Reversion Plan

  • Sell a share of your property – you’ll receive this as a lump sum or regular income
  • The cash released is tax-free
  • Gives you the opportunity to live in your home rent free although you will still need to pay to maintain it, as you have already been doing
  • When your property is sold, the sale proceeds are shared according to the remaining split of ownership

Your feedback is important to us.

Some of the Later Life Lending product options we have detailed are currently not available through us. If any of these Later Life options sound like something you’d be interested in, why not help us understand a little more by answering a couple of quick questions?

What next?

Before deciding on whether this type of mortgage is right for you, you should speak to an adviser who is fully qualified and specialises in Later Life Lending advice. An adviser can explain what is involved and any other options available before you proceed.   We currently do not offer advice on equity release, but you can find a qualified adviser at Money Advice Service or through the Equity Release Council.