A flexible approach to retirement

Later life mortgages

Brought to you by Santander in partnership with Legal & General

Why Santander and Legal & General?

Santander don’t offer later life mortgages. So that our customers can explore a wide range of options we’ve partnered with Legal & General to offer their later life range.

Unless otherwise indicated, all references to 'us', 'we' and 'our' on this website indicate Legal & General.

Compare our later life mortgages

Our Lifetime Mortgages and Retirement Interest Only Mortgage may appear similar, but it's important to understand the differences between each product. We've pulled out some of the key points below.

Our Lifetime Mortgages

Our Retirement Interest Only Mortgage

Age

50+ for our Payment Term Lifetime Mortgage

55+ for our Interest Roll Up and Optional Payment Lifetime Mortgages

55+

Minimum loan amount

£10,000

£10,000

Maximum loan amount

Determined by your age and property value.

For our Payment Term Lifetime Mortgage an affordability assessment is also required.

Up to 60% of the value of your home, subject to an affordability assessment.

Is there an affordability assessment?

Yes, for our Payment Term Lifetime Mortgage

No, for our Interest Roll Up and Optional Payment Lifetime Mortgages

Yes

Is the loan secured against my home?

Yes

Yes

When do I have to repay the full amount of the loan?

The loan is usually repaid when you die or move out of your home into long-term care.

The loan is usually repaid when you die or move out of your home into long-term care.

Do I have to pay interest every month?

Yes, for our Payment Term Lifetime Mortgage you have to pay the full interest monthly for your chosen payment term. As a last resort, your home may be repossessed if you do not keep up with payments.

No, for our Interest Roll Up and Optional Payment Lifetime Mortgages the interest is charged on the loan amount plus any interest already added, so the amount owed will increase quickly over time.

However, with our Optional Payment Lifetime Mortgage you can choose to pay off some or all of the monthly interest to prevent this.

Yes - the interest due is payable in full by you each month. As a last resort, your home may be repossessed if you fail to keep up repayments.

Is the interest rate fixed?

Yes. The interest rate is fixed for the life of the loan.

Yes. The interest rate is fixed for the life of the loan.

A mortgage may affect means-tested benefits, your tax position and any future inheritance.

Legal & General's later life mortgages

Our product options

Make full monthly interest payments for a set term

If you're aged 50 or over and you'd prefer to take a lump sum and pay all the interest each month for a chosen payment term, our Payment Term Lifetime Mortgage could be right for you.

Make any monthly interest payments, with the option to stop anytime

If you're aged 55 or over and you'd prefer to take a lump sum, or a series of lump sums, and pay off some or all of the interest, our Optional Payment Lifetime Mortgage could be right for you.

Make no monthly interest payments

If you're aged 55 or over and you'd like to take a lump sum, or a series of lump sums, and pay nothing until you die or move into long term care, our Interest Roll Up Lifetime Mortgage could be right for you.

Lifetime mortgage pros and cons

You can only get a lifetime mortgage through a qualified equity release adviser, but it's important to understand the benefits and risks.

  • Tax-free cash
    When you release equity with one of our Lifetime Mortgages, you can take a lump sum in one go or as a series of smaller lump sums when it suits you.
  • Spend it how you want
    You can use the money you release for home improvements, helping children buy their first property or increase your income in retirement. It's up to you.
  • Nothing to repay
    Unless you choose otherwise, there's nothing to repay until you die or move permanently into long-term care.
  • Flexible repayments
    If you prefer, there's an option to repay some or all of the interest. You can also choose to repay part of the original loan.
  • Stay in your home
    With equity release, you don't need to downsize and can stay in your home until you die or move permanently into long-term care.
  • You can still move house
    So long as the new property is acceptable to us.
  • Inheritance protection
    Part of the value of your home can be passed on if you choose our Inheritance Protection option.
  • No negative equity guarantee
    Whatever happens you'll never repay more than the value of your home when it is sold - even if that's less than the amount owing. Subject to terms and conditions.
  • The interest can build up quickly
    Any unpaid interest can rapidly build up over time. There may be cheaper ways to borrow money.
  • Reduced inheritance
    Even with our Inheritance Protection option, releasing equity with a lifetime mortgage will reduce how much you can leave as an inheritance.
  • Inheritance tax
    If you gift the money, the recipient may need to pay inheritance tax in the future.
  • Early Repayment Charge
    If you choose to repay all or a significant part of the loan early, there may be an Early Repayment Charge.
  • Means-tested state benefits
    If you're receiving certain means-tested state benefits, taking a lifetime mortgage could impact your entitlement to these benefits.
  • Higher interest rates
    Usually the interest rates for a lifetime mortgage are higher than the rates charged for a traditional mortgage.
  • Repaying an existing mortgage
    You may have to pay an Early Repayment Charge to your existing lender if you remortgage.
  • With the Payment Term Lifetime Mortgage your home may be repossessed
    This may happen as a last resort if you fail to keep up with payments.

Equity release calculator

This calculator helps you see how much equity you could release with a lifetime mortgage, a loan secured against your home. 

Before you start

  • The amount you can borrow is based on your age and the value of your home, but this might be less when you come to apply. If you are the sole borrower you may be able to release more.
  • If you're applying for a joint lifetime mortgage, enter the age of the youngest applicant.
  • You need to be between the ages of 50 and 90.
My date of birth is
 /
/
Are you still in employment?
be able to make monthly interest payments until I retire
£
£

This is a guide to the lifetime mortgage products we offer, and not advice or a personal recommendation. You can only buy a lifetime mortgage through a financial adviser.

If we call, we’ll use your address to look up your property to assist with your enquiry.

Based on the information supplied you could release:
This is an estimate. The amount you can release depends on your property, its value and your individual circumstances. Speak to an adviser to find out how much you could release.

Thank you.

How is interest calculated on a lifetime mortgage?

Our Lifetime Mortgages have a fixed interest rate for life, which means it will not change for the duration of your loan. Interest is charged on a compounding basis, which means that interest is charged on the loan amount plus any interest already added.

Interest on our Lifetime Mortgages is calculated daily and added to the amount you owe each month. This means if you're not repaying the interest, the amount you owe will quickly increase over time, reducing the equity left in your home, especially if the loan continues for a longer period. There may be cheaper ways to borrow money.

Examples of how compound interest works on our Lifetime Mortgages

The tables below show how much you might owe over if you didn't make interest payments in the first five, after 10 years; after 15 years; and after 20 years with example compound interest rates of 6%, 7%, and 8% on an initial loan of £50,000.

Year Loan amount Interest at 6% Total owed
1 £50,000 £3,000 £53,000
2 £53,000 £3,180 £53,000
3 £56,180 £3,371 £59,551
4 £59,551 £3,573 £63,124
5 £63,124 £3,787 £66,911
10 £84,474 £5,068 (£39,542) £89,542
15 £113,045 £6,783 (£69,828) £119,828
20 £151,280 £9,077 (£110,357) £160,357

 

The figures shown in brackets is the total amount of interest which will be added onto the original loan.

The rate you will get will be based on your individual circumstances.

Year Loan amount Interest at 7% Total owed
1 £50,000 £3,500 £53,500
2 £53,500 £3,745 £57,245
3 £57,245 £4,007 £61,252
4 £61,252 £4,288 £65,540
5 £65,540 £4,588 £70,128
10 £91,923 £6,435 (£48,358) £98,358
15 £128,927 £9,025 (£87,952) £137,952
20 £180,826 £12,658 (£143,484) £193,484

 

The figures shown in brackets is the total amount of interest which will be added onto the original loan.

The rate you will get will be based on your individual circumstances.

Year Loan amount Interest at 8% Total owed
1 £50,000 £4,000 £54,000
2 £54,000 £4,320 £58,320
3 £58,320 £4,666 £62,986
4 £62,986 £5,039 £68,024
5 £68,024 £5,039 £73,466
10 £99,950 £7,996 (£57,946) £107,946
15 £146,860 £11,749 (£108,608) £158,608
20 £215,785 £17,263 (£183,048) £233,048

 

The figures shown in brackets is the total amount of interest which will be added onto the original loan.

The rate you will get will be based on your individual circumstances.

Why Legal & General

Hand with trust

We're here to help you

Since 2015, we've lent over £6.79 billion to over 118,000 customers.

Equity Release Council logo

For lifetime mortgages

We're a proud member of the Equity Release Council.

Moneyfacts 2024

Award winning

Moneyfacts awarded us Best Equity Release Provider in 2024.

Talk to us

Talk to Santander

Santander will check if you meet the eligibility requirements and then put you through to us to discuss further if a later life mortgage is the right option for you.

0800 032 6984

Monday to Friday 9:00am - 5:00pm
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