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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 has partnered with Legal & General. If you're 55 or over, 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. To be eligible, your home will need to be valued at £100,000 or more (£150,000 for ex-council, ex-housing association or ex-Ministry of Defence properties) and be in England, Wales or mainland Scotland. The property should be your primary residence and be made of standard construction.
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 January 2018, Legal & General have lent over £1.8 billion 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.
Unlike a residential mortgage, which is a loan usually required to buy a home, with a lifetime mortgage the duration of the loan is not fixed. It's usually repaid from the sale of your home when the last surviving borrower dies, or moves out of their home and into long-term care.
Another difference is whether you make monthly payments or not. Legal & General offers two types of lifetime mortgage. With our Flexible Lifetime Mortgage, you won't have to make monthly payments. With the Optional Payment Lifetime Mortgage, you can choose to pay some, or all, of the monthly interest by Direct Debit. If you choose this product, it could help you reduce the overall cost of the loan. You can stop making monthly interest payments at any time.
With both lifetime mortgages, any unpaid interest is added each month to the amount you owe. This means interest is charged on the loan plus any interest already added. The amount you owe will increase quickly over time, reducing an inheritance and the equity left in your home.
More details on the differences between residential mortgages and lifetime mortgages can be found in our Guide to Lifetime Mortgages.
You must use the released funds to pay off the balance of your mortgage, with The Co-operative Bank, in full, including any early repayment charges that may apply.
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What's more, our No Negative Equity Guarantee, means that when your property is sold after the last surviving borrower dies, or moves out of your home and into long-term care, you or your beneficiaries will never have to pay back more than the amount your property is sold for, even if your home goes down in value. 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.
A lifetime mortgage could make a big difference to you and your family, but there are important factors to consider. Repaying a loan early could mean substantial early repayment charges. You should consider using savings and investments before taking a lifetime mortgage, and look into other options to borrow money that may be more cost-effective.
A lifetime mortgage can be taken out by just yourself, or with your spouse or partner. You must be 55 or over and your home be valued at £100,000 or more (£150,000 for ex-council, ex-housing association or ex-Ministry of Defence properties) in England, Wales or mainland Scotland. The property should be your primary residence and be made of standard construction.
You must use the released funds to pay off the balance of your mortgage with 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 use it as you wish, for example for home improvements, holidays or to improve your quality of life.
Our Lifetime Mortgages allow you to take the maximum loan all in one go, or in smaller amounts, as an when you need them. If you take it in smaller amounts, the interest rate of each amount will depend on the interest rates available at the time.
Our Lifetime Mortgages offer Inheritance Protection which can help you secure a percentage of the net sale proceeds of your home for the beneficiaries of your estate when you die. If you take the Inheritance Protection option it 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.
It’s a big decision, and there are many factors to consider. That’s why you can only get a lifetime mortgage through a lifetime mortgage adviser. You could talk to your own adviser about equity release or The Co-operative Bank can put you in touch with, The Retirement Lending Advisers. They're not part of Legal & General, they're a separate company who only advise on our Lifetime Mortgages. 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.
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Our step-by-step guide helps explain the key stages to taking out one of our Lifetime Mortgages, and what happens next.
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You can speak to your own financial adviser or alternatively, The Co-operative Bank can put you in touch with The Retirement Lending Advisers. They're not part of Legal & General, they're a separate company who only advise on our Lifetime Mortgages. They won't charge you an advice fee.
Even if your home goes down in value, you or your beneficiaries will never pay back more than the amount your property is sold for. 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.
As we're a member 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 outstanding residential mortgage.
Anything left after paying off your interest-only mortgage could be used to improve your general standard of living.
It could allow you to give a family member their inheritance now to help get them on the property ladder.
Day to day, a lifetime mortgage could help you enjoy a better quality of retirement.
For both our products, we charge interest on the loan plus any unpaid interest already added. This means the amount you owe will increase quickly over time, reducing an inheritance and the equity left in your home. If you give the money away the recipient may have to pay inheritance tax.
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Your lifetime mortgage would be a new loan with Legal & General, and must be used to repay your outstanding 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.
If you stop making monthly interest payments with our Optional Payment Lifetime Mortgage, or if you choose our Flexible Lifetime Mortgage, you can still pay part of the mortgage off early with no Early Repayment Charge using the Optional Partial Repayment feature, subject to our Terms and Conditions.
Legal & General Home Finance Limited 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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