The place to come for unbiased independent Equity Release advice.

Northwest Equity Release

Northwest Equity Release

Northwest Equity Release

Northwest Equity Release

Northwest Equity Release

How much can I borrow with a Lifetime Mortgage?

This depends on two factors. The value of your home and how old the younger applicant is if a joint application. The table below will give you an idea of how much you could borrow at a selection of different ages. Note. This is an indication only and will depend on the recommended lender and the plan terms and conditions.

To be absolutely clear, this is how much the provider is prepared to lend and NOT as is a common misinformed untruth, how much the lender is prepared to offer for your house. With a Lifetime Mortgage, you always own your own home. The Lifetime Mortgage lender will take a first legal charge, just as would happen with a conventional residential mortgage. There’s no difference other than there’s no set term for the mortgage and there’s no requirement to make any payments towards it during your lifetime unless you want to.

Looking at an example, taking the younger applicant as being 70 years old, owning a house worth £275,000:

At age 70 on the table below you’ll see under “Standard terms” the value is  47.00%. This is the maximum loan to value (LTV) that could be borrowed.

Therefore, £275,000 X 47.00% = £129,250. This is the maximum that could be borrowed.

There’s a column titled “Enhanced terms”. Some lenders will lend more if you’re not in the best of health. I’ve taken an example of a male 1.7 metres tall, weight 84.8 kilograms with Type 2 Diabetes and high blood pressure that requires medication to provide an indication of the difference. This is a complex area and relies completely on personal circumstances so these results are indicative only.

Using the same example as above, at age 70 eligible for enhanced terms the  LTV could be 53.50%.

Therefore, £275,000 X 53.50% = £147,125. is the maximum that could be borrowed.

Note, the closer your borrowing comes to the maximum available, the higher the interest rate that will be charged.

Your personal circumstances and needs have to be taken into account to make sure the plan recommended provides the best value over the term, whilst meeting your specific requirements. This is why you need to take advice from a properly authorised Equity Release Specialist.

Please use the contact form, link above on the menu, to get in touch so I can provide more details.

Age attained

Standard terms

Enhanced terms

55

29.50%

37.60%

60

36.70%

43.00%

65

41.80%

58.50%

70

47.00%

53.50%

75

51.50%

54.50%

80

57.50%

57.50%

85

58.20%

58.50%

90

59.25%

59.30%