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Discover how lifetime mortgages work and how they may help you.
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See how much you could borrow to repay your interest only mortgage.
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View the seven steps to taking out our Lifetime Mortgages.
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The Co-operative Bank doesn’t offer lifetime mortgages, so have partnered with Legal & General. If you are over 55, coming to the end of your existing interest only mortgage term and still expect to have an outstanding balance to pay, a lifetime mortgage could be an option for you. As long as your home is worth over £100,000 (£150,000 for ex-local authority properties).
Unless otherwise indicated, all references to ‘us’ and ‘our’ on this website indicate Legal & General.
If you already know Legal & General, then we hope you’ll know we’re a company you can trust and that we’re committed to helping you plan and build a secure financial future.
From protecting the things that matter at all stages of your life, to planning how to utilise the assets you've worked so hard to build up, we're helping millions of people to secure their financial future.
That’s why Legal & General is a natural choice, particularly if you want to repay your interest only mortgage from The Co-operative Bank with a lifetime mortgage.
As at February 2017, Legal & General have lent over £900m in lifetime mortgages to thousands of people.
We’re backed by the strength and security of the Legal & General Group. We take your security and happiness very seriously, we only offer our Lifetime Mortgages through fully qualified and approved financial advisers.
More information on Legal & General can be found on the about us page.
A lifetime mortgage works differently to a residential mortgage, which is a loan usually required to help buy a home. Some of the main differences include no need to make monthly payments, and the duration of the loan is not fixed as it is repaid when you die, or move into long term care.
More details on the differences between residential mortgages and lifetime mortgages can be found in our Guide to Lifetime Mortgages.
If there is any equity left in your home, you may be able to use this to change your retirement for the better. A lifetime mortgage creates a debt on your home.
You must use the released funds to pay off the balance of your mortgage, from The Co-operative Bank, in full, including any early repayment charges that may apply.
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What's more, with our no-negative equity guarantee, you’ll never be left with an outstanding debt after your property is eventually sold. This is provided your home is sold for the best price reasonably obtainable and you have met the terms and conditions of your lifetime mortgage.
It’s important to know that we charge interest on the total loan amount plus any interest already charged. Because you don't have to make any repayments, the amount you owe on your lifetime mortgage grows quickly and reduces the equity left in the property. A lifetime mortgage will reduce an inheritance and may affect entitlements to state benefits. Repaying a loan early could mean substantial early repayment charges. If property values fall, that may affect the equity available to you or your estate. You should consider other options to borrow money which may be more cost effective.
This plan can be taken out by just yourself or with your spouse or partner, but you must be 55 or over to apply and your UK property must be worth at least £100,000 (£150,000 for ex local authority properties).
You control how and when you take your money. Our Lifetime Mortgages allows you to take the maximum loan all in one go, or in smaller amounts, as and when you need it. If you take it in smaller amounts, the interest rate of each amount will depend on the interest rates available at the time. You must use the released funds to pay off the balance of your mortgage from The Co-operative Bank, in full, including any early repayment charges that may apply. After repaying your outstanding mortgage balance, if there is still money available to borrow, you may be able to access this, tax-free.
All of our Lifetime Mortgages offer an option to protect a percentage of the value of your home for your beneficiaries. This will reduce the amount you can borrow. If you require the maximum loan amount to repay your residential mortgage, inheritance protection may not be available.
This is your home, so we want you to be sure about your decisions. You could talk to your own financial adviser about equity release or The Co-operative Bank can put you in touch with a separate firm that has a qualified team of specialists, The Retirement Lending Advisers (TRLA). They're not part of Legal & General, they're a separate company who only advise on Legal & General's Lifetime Mortgages and they won't charge you an advice fee.
For our customers who were charged an advice fee by an independent financial adviser, the majority paid £1,034 or more. This fee could have been saved if they had used The Retirement Lending Advisers to advise them on their Legal & General Lifetime Mortgage.
Savings are based on advice fees paid by Legal & General customers between January and June 2017. Independent financial advisers can give advice on all lifetime mortgages available in the market. Advice fees vary and any actual savings will depend on your individual circumstances.
Our lifetime mortgage calculator makes it easy to see how much money you could borrow with a Legal & General Lifetime Mortgage.
I am years old and I think my property is worth £
Our step by step guide helps explain the key stages to taking out a Legal & General Lifetime Mortgage, and what happens next.
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If you choose not to use your own adviser, The Co-operative Bank can put you in touch with a specialist team of equity release advisers - The Retirement Lending Advisers. Unlike many other similar services, if you use The Retirement Lending Advisers, a separate company who only advise on Legal & General's Lifetime Mortgages, they won't charge you an advice fee.
Even if your home goes down in value, you’ll never have to pay back more than the net sale proceeds of the property – even if it’s less than the outstanding mortgage balance. This is provided the property is sold for the best price reasonably obtainable and you have met your terms and conditions. You and your family will be clear, knowing there’ll be no nasty surprises later on. A lifetime mortgage will reduce an inheritance and may affect entitlements to state benefits.
As members of the Equity Release Council, you can have complete confidence in Legal & General’s Lifetime Mortgages.
With a lifetime mortgage, you could pay off your existing residential mortgage and stop your monthly mortgage repayments.
Anything left after paying off your interest only mortgage could be used to improve your general standard of living.
After paying off your interest only mortgage, any outstanding money could be used to improve your home.
Day to day, a lifetime mortgage could help you enjoy a better quality of retirement.
We charge interest on the total loan plus any interest already charged. This means the amount you owe grows quickly, and reduces the equity left in the property and the value of any inheritance.
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Your lifetime mortgage would be a new loan with Legal & General, and must be used to repay your existing mortgage with The Co-operative Bank. It is a condition of your lifetime mortgage that the money released is used to immediately pay off your interest only mortgage in full.
You only need to repay the loan when you die or go into long-term care. If you decide to repay the loan before this, you may need to pay an early repayment charge.
Legal & General Home Finance is a wholly owned subsidiary of Legal & General Group plc. Registered in England and Wales number 04896447. Registered office: One Coleman Street, London EC2R 5AA.
Legal & General Home Finance Limited is authorised and regulated by the Financial Conduct Authority.
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