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Later Life
Mortgages

With a range of Later Life products available, it can be difficult to know which best suits your circumstances and desired outcome. To help you navigate through, our expert advisers are just a phone call away. For support in finding the right solution for you, arrange a free 30-minute consultation with us.

Please note: To understand the features and risks, always obtain a personalised illustration.

What is a Later Life Mortgage?

Later Life Mortgages provide a way for homeowners aged 55 and over to access the value accumulated in their property, whilst continuing to live in it. Releasing equity allows you to use the money for many varied reasons – this provides opportunities for improving the lifestyle of you and your family. The amount of equity available is the value of your home, less any mortgage or loan secured on it.

With a number of products available, we can guide you to the most suitable solution. While many choose to release equity with a Lifetime Mortgage, it is worth speaking with a specialist adviser to explore your options and to ensure that, whatever decision you take, it will meet your needs both now and in the future.

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Equity Release Calculator
How much equity can I release?

Calculate the amount of equity you can release and how much you will owe over your estimated term, if no voluntary payments are made. If your loan runs for a longer period, and you have not made any payments, the amount you owe will increase.

Please note: With the current ongoing changes to the financial markets, equity release amounts and interest rates are constantly changing. To discuss the latest plans and to understand the features and risks, always obtain a personalised illustration.

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What could I use the released funds for?

  • Support family members by gifting tax-free* money
  • Upsize to a more expensive property (Lifetime Mortgage)
  • Undertake renovations on your home
  • Supplement your income
  • Fund your dream holiday
  • Pay off existing debt or a mortgage

Releasing cash can allow you to use the funds to support your lifestyle or your loved ones. Our specialist advisers will take the time to guide you and your family through all available options, during each step of the process.

*Funds are released tax-free, but may become assessable for tax depending on how they are used. When gifting money to loved ones, arranging a Gift Inter Vivos insurance plan can help to mitigate a tax liability that may be applicable.

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Please note: With the current ongoing changes to the financial markets, equity release amounts and interest rates are constantly changing. To discuss the latest plans and to understand the features and risks, always obtain a personalised illustration.

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What are the different plans available?

Once a standard mortgage has been discounted, alternative options in Later Life are typically:

Retirement Interest Only Mortgage (RIO)

An affordability-assessed, interest-only mortgage that comes with an open term. The borrower(s) will be contracted to monthly payments to cover the interest and there is a risk of repossession if the payments are not maintained.

Lifetime Mortgage

This is the most popular way to release equity. The homeowner retains full ownership of their property and has the right to reside for life. Funds are released at a fixed rate and payments are voluntary.

There is another type of equity release. As it is not a loan, it does not incur interest, but it requires ownership to be surrendered:

Home Reversion

These plans involve selling a percentage of your property ownership for a cash lump sum or for regular income, while retaining the right to reside. You effectively become a tenant in your own home, with responsibility for the upkeep of the property. This option is not a loan, so it does not incur interest; however, is does require ownership of the home to be surrendered.

Please note we do not offer personalised advice regarding home reversion. The information provided about home reversion is for general information purposes only and does not constitute financial or professional advice.

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Please note we do not offer personalised advice regarding home reversion. The information provided about home reversion is for general information purposes only and does not constitute financial or professional advice.

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Why choose us?

Experienced Specialists

Our specialist advisers have over 45 years of combined experience in supporting clients looking for bespoke mortgage solutions. We will provide advice that is tailored to your circumstances and objectives.

Our Approach

We are here to guide you during every step of your mortgage journey. Our expert advisers take the time to understand your requirements and circumstances to explore the most suitable options available to you.

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What should I be aware of with Later Life Mortgages?

When releasing equity via a Later Life Mortgage, it’s tempting to focus on the immediate boost you will get from the money you unlock. However, you must be mindful of understanding that future house prices are not guaranteed. Reducing the equity in your property could affect your future choices and your financial situation later down the line, particularly if you have to pay for long-term care. To understand the features and the risks, always obtain a personalised illustration.

Some of the disadvantages of a Later Life Mortgage include, but are not limited to, the following:

  • Any money you raise through releasing equity is likely to affect your entitlement to means-tested benefits.
  • If you repay a Lifetime Mortgage early, you will usually have to pay an Early Repayment Charge.
  • As Lifetime Mortgage payments are voluntary, should you choose not to make any payments, you could be left with very little equity in your home to pass on to your beneficiaries or to spend on long-term care for yourself or your partner.
  • If you need to move to a smaller property in the future and have a Lifetime Mortgage, you might find that you can’t afford to, or that your choice of property is restricted to your lender’s criteria at the time.
  • Schemes are not particularly flexible if your circumstances change. For example, you’ll usually need permission from someone else, such as a relative, carer or new partner to move in.
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Please note: a mortgage is secured against your property. Your property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. To understand the features and risks, always obtain a personalised illustration.

Frequently Asked Questions

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For Lifetime Mortgages, you can expect a period of six to eight weeks from application to receipt of funds for a standard case. Home Reversion may take longer due to the transfer of title.

Our advice process usually takes place over two meetings. The first is a fact-finding meeting for your adviser to understand your situation and objectives, and to discuss alternatives (90 minutes). The second is a presentation meeting to go through the recommended plan in full (60 minutes) before you make any decisions. The features and risks, including charges, will be detailed in your personalised plan illustration.

Plan-specific product fees can typically be up to £995. Although, many are available fee-free and usually include a property valuation.

At Henry Dannell, an initial no-obligation, 30-minute consultation is complimentary. Should you wish to proceed, we charge an advice fee of £1,295 payable upon the completion of your mortgage.

Our advice fee is a fee for life, meaning that if life changes and you have exhausted your available release, our Later Life advice will be available to you again at any time, with no additional advice fee payable should you wish to release additional funds or remortgage.

Independent legal advice will also be required and fees may vary. However, these fees will typically be in the region of £800.

We do not offer independent legal advice, but we are able to facilitate a referral to a specialist.

Both types of plans will consider leasehold properties, but lending criteria for these can be more limited. The plan may require a minimum unexpired lease, with a management company in place. Funds can be used to extend the lease and there may be caps on the Service Charge and Ground Rent.

Assuming your new property meets your lender’s criteria, your loan-to-value limit would be reassessed and a penalty-free partial repayment may be required if you are downsizing and wish to port your loan.

If you would like to increase the amount of equity released (a Further Advance or Additional Borrowing), you would normally have to apply to your existing lender, as they hold the first and only charge they allow on your property. A further release would be subject to prevailing rates, lending criteria and available equity. An adviser could also compare the cost for a full remortgage to include the additional borrowing.

All members of the Equity Release Council are only able to inform you of products on the basis that they meet all standards outlined below:

  1. For Lifetime Mortgages, interest rates must be fixed or, if they are variable, there must be a “cap” (upper limit), which is fixed for the entire term of the loan.
  2. You must have the right to remain in your property for life, or until you need to move into long-term care, provided the property remains your main residence and you abide by the terms and conditions of your contract.
  3. You have the right to move to another property, subject to the new property being acceptable to your product provider as continuing security for your loan.
  4. The product must have a “no negative equity guarantee”. This means that when your property is sold, and agent and solicitor fees have been paid (even if the amount left is not enough to repay the outstanding loan to your provider), neither you nor your estate will be liable to pay any more.
  5. All customers taking out new plans which meet the Equity Release Council standards must have the right to make penalty-free payments, subject to lending criteria.

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What our clients say…

'During this time Stephen was extremely diligent and spent no end of time in liaising with both the lender and the lender's solicitors in reaching a successful outcome and keeping me informed at all times.'

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