Call The Co-operative Bank
There are two types of equity release: lifetime mortgages and home reversion plans. Legal & General only offers lifetime mortgages, which is what we’re explaining here.
With our Flexible Lifetime Mortgage, you won’t have to make any monthly payments. With our 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.
For both our Lifetime Mortgages, any unpaid interest is added each month to the amount you owe and will increase quickly over time. This means interest is charged on the loan plus any interest already added. A lifetime mortgage will reduce an inheritance and the equity left in your home.
The loan and interest are usually repaid when the last surviving borrower dies, or moves out of your home and into long-term care.
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.
More details on lifetime mortgages can be found in our Guide to Lifetime Mortgages.
Download our guide
You can speak to your own financial adviser, 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 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.
A lifetime mortgage is a loan secured against your home and there may be cheaper ways to repay your interest-only mortgage. As well as seeing the potential benefits of a lifetime mortgage, it’s very important to understand the risks involved:
If you still have a balance owing at the end of your interest-only mortgage, you must use the money you borrow with a lifetime mortgage to repay this in full.
We can’t predict how property values may change, and any fall in value will affect the equity available to you or your estate. However, our No Negative Equity Guarantee means that 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.
It takes less than a minute to find out. Use our simple calculator to see how much tax-free cash you could release from your home.
With our Lifetime Mortgages, you stay in your home until you die or move out of your home and into long-term care, as long as you meet the Terms and Conditions of your lifetime mortgage. Your adviser will explain these to you. Failure to meet these could result in the forced sale of your property and the loss of your right to Inheritance Protection, if this has been chosen.
As part of our Lifetime Mortgages, we offer Inheritance Protection. This option will reduce the amount you can borrow, but it can help you secure an inheritance for your family or anyone else who you’d like to benefit from your estate. If you require the maximum loan amount to repay your residential mortgage, Inheritance Protection may not be available.
We’re a member of the Equity Release Council, so with Legal & General, you can be confident you’re in safe hands.
Our products include a No Negative Equity Guarantee, so you or your beneficiaries won't be left with an outstanding mortgage debt after your home is sold, which means greater peace of mind for you and your family.
A lifetime mortgage will reduce an inheritance and if property values fall, it may affect the equity available to you or your estate.
With both lifetime mortgages, any unpaid interest is added each month to the amount you owe and will increase quickly over time. This means interest is charged on the loan plus any interest already added. A lifetime mortgage will reduce an inheritance and the equity left in your home.
You will need to make sure the amount you're eligible to borrow with our Lifetime Mortgage will completely pay off the balance of your mortgage, from The Co-operative Bank. This may include other savings, investments or sources of income that you could use as payment towards this.
If you take it in smaller amounts, the interest for each amount will depend on the interest rates available at the time.
The amount you owe will increase quickly over time, reducing an inheritance and the equity left in your home. However, there are repayment options which could help you manage the interest you owe.
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 it is sold for the best price reasonably obtainable and you have met the Terms and Conditions.
If your property does fall in value this will have an effect on the amount of equity that you have left. Your financial adviser will be able to explain more about the possible effects of changes in property value.
However, with our Inheritance Protection option, you can secure a percentage of the net proceeds of your home for the beneficiaries of your estate when you die.
It will reduce the amount you can borrow, but it will make sure there's equity left to be passed on to the people you love. This is provided at no additional cost, but must be selected when you first take out your lifetime mortgage.
We strongly recommend you talk to your family about taking out a lifetime mortgage before making a decision to go ahead. Inheritance Protection is only available if there is enough equity left in your home after your interest-only mortgage has been repaid.
Don’t worry, a lifetime mortgage adviser will explain how you may be affected before you make the application, and also let you know if there are any benefits you’re missing out on at the moment. The adviser will also let you know if your personal situation means a lifetime mortgage isn’t appropriate for you at the moment.
There may be other products or options available to you that are more appropriate for your situation. You should consider other ways to borrow money that may be more cost-effective.
If you have an adviser, you should discuss the options available to you with them. Alternatively Santander can put you in touch with the The Retirement Lending Advisers, who will be happy to help you. They're not part of Legal & General, they're a separate company who only adivse on our Lifetime Mortgages. They won't charge you an advice fee.
If you would like to find out whether you might be eligible for a Legal & General Lifetime Mortgage or to discuss your existing mortgage balance, then please call The Co-operative Bank directly, who will be able to help you with this.
Call The Co-operative Bank
If you have an adviser, you can discuss it with them. Alternatively, The Co-operative Bank can put you in touch with The Retirement Lending Advisers, who will be happy to help you. 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.
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 £
Request a printed copy, or download our free guide to lifetime mortgages
Get a guide
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.
© Legal & General Group plc
legalandgeneral.com | All our sites