Q: What is a lifetime mortgage?

A lifetime mortgage (sometimes referred to as ‘equity release’) is a loan, secured against your home, which allows you to access some of its value without having to sell it or move out. The money you access is tax-free and can be used as you wish, providing any existing mortgage is paid off first. Unlike most other secured loans such as a traditional mortgage, you do not need to make monthly repayments (unless you choose to do so). The amount you borrow, plus interest which rolls up over the course of the mortgage, is paid back from the sale of the property when the last remaining applicant passes away or moves into long term care. All Standard Life Home Finance products feature a ‘no negative equity guarantee’, meaning you will never owe more than the value of your home when sold. The amount you can release through a lifetime mortgage depends on two characteristics; the age of the youngest applicant, and how much your property is worth. The older you are and the more valuable your property, typically, the more you can release.

Q: Who is eligible for a lifetime mortgage?

You may be eligible for a lifetime mortgage if: You’re aged 55 or over You’re a UK homeowner Your home is worth at least £99,000 Even if you meet the minimum criteria above, it doesn’t mean a lifetime mortgage is necessarily the right choice for your circumstances. That is why it’s important to speak to a qualified advisor who can help advise as to whether a lifetime mortgage would be suitable for you. If you don’t already have a relationship with a qualified advisor, we can put you in touch with our preferred partner, Key Advice Solutions.

Question 1

What is a lifetime mortgage?

Accepted Answer

A lifetime mortgage (sometimes referred to as &lsquo;equity release&rsquo;) is a loan, secured against your home, which allows you to access some of its value without having to sell it or move out. The money you access is tax-free and can be used as you wish, providing any existing mortgage is paid off first. Unlike most other secured loans such as a traditional mortgage, you do not need to make monthly repayments (unless you choose to do so). The amount you borrow, plus interest which rolls up over the course of the mortgage, is paid back from the sale of the property when the last remaining applicant passes away or moves into long term care. All Standard Life Home Finance products feature a &lsquo;no negative equity guarantee&rsquo;, meaning you will never owe more than the value of your home when sold. The amount you can release through a lifetime mortgage depends on two characteristics; the age of the youngest applicant, and how much your property is worth. The older you are and the more valuable your property, typically, the more you can release.

Question 2

Who is eligible for a lifetime mortgage?

Accepted Answer

You may be eligible for a lifetime mortgage if: 	You&rsquo;re aged 55 or over 	You&rsquo;re a UK homeowner 	Your home is worth at least &pound;99,000 Even if you meet the minimum criteria above, it doesn&rsquo;t mean a lifetime mortgage is necessarily the right choice for your circumstances. That is why it&rsquo;s important to speak to a qualified advisor who can help advise as to whether a lifetime mortgage would be suitable for you. If you don&rsquo;t already have a relationship with a qualified advisor, we can put you in touch with our preferred partner, Key Advice Solutions.

Question 3

What are the main types of lifetime mortgage?

Accepted Answer

With a lifetime mortgage, there are two ways to unlock funds from your home. One is taking all the money in one go; known as a lump sum, and the other enables you to take it in chunks as and when you need it, following an initial release. This is known as a drawdown lifetime mortgage.

Question 4

Who are Standard Life Home Finance?

Accepted Answer

Standard Life Home Finance is a leading provider of lifetime mortgages, recognised as the &lsquo;2023 Later Life Lender of the Year&rsquo; at the MoneyAge Mortgage Awards. Their &lsquo;Horizon&rsquo; range of lifetime mortgages have received a 5 Star Rating by Defaqto - a leading financial information, ratings and fintech business - offering competitive rates, a wide range of lending criteria and product features designed around flexibility and service. If you decide to use our preferred advice partner, Key Advice Solutions, they will provide advice exclusively on Standard Life Home Finance lifetime mortgages.

Question 5

How does applying for a lifetime mortgage work?

Accepted Answer

Call up on 0800 123 456 to register your interest and book an appointment with an advisor at a time that suits you. You can request for your appointment to be over the phone, face to face, or via a video call. You may also want to invite family members to the call so that they can ask any questions they have. 	Your dedicated advisor will take time to answer your questions, understand your personal circumstances and advise as to whether a lifetime mortgage is a suitable option for you or not. 	Your advisor will send you a recommendation of which Standard Life Home Finance lifetime mortgage is most suitable for you, including a personal illustration of the how much the loan amount will cost over time. If Standard Life Home Finance products are not right for your circumstance, your advisor can direct you to an advisor who can look at other product providers. 	At this point, you can take your time to review the recommendation and decide if it&rsquo;s something you want to progress with. If you decide it&rsquo;s not right for you, you can walk away, and it won&rsquo;t have cost you anything other than your time. 	If you do decide to proceed, your advisor will help you through the application process which includes having your property valued and involving a solicitor to review the legalities. 	Once you confirm you are happy, you can submit your application. It typically takes around 8-12 weeks from submitting an application to completing the process 	Your money will be released for you to start enjoying however you wish.

Lifetime mortgage benefits, drawbacks and alternative options

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