What does the Advantage Lifetime Mortgage offer?

The Advantage Lifetime Mortgage allows you to pay some or all of the monthly interest, which means you could benefit from a lower interest rate. You can choose to pay 25%, 50%, 75% or 100% of the interest each month. The more interest you pay, the bigger your discount. Once your mortgage is set up, your monthly payment amount can’t be changed, but you can choose to stop making payments at any time.

How do I make the monthly interest payments?

Your monthly interest payments will be collected by direct debit. Payments start on the first working day of the month after your mortgage completes. Please note, your first payment may be a bit higher than usual, as it covers the period from completion until the start of the following month.

What happens if I miss a monthly interest payment or stop making payments?

If you’re unable to make a payment, please let us know. You can miss up to three payments over the life of your mortgage, and any missed payments will be added to your loan balance. If you miss more than three payments, you won’t be able to restart them, and your interest rate will increase as the discount will no longer apply. Your mortgage will then switch to a roll-up mortgage, where interest is added to your loan each month.

Can I make extra payments towards my loan?

Yes, you can make voluntary payments of up to 10% of your original loan amount each year without any early repayment charges. These payments can be made by standing order or bank transfer, with a minimum payment of £50. If your voluntary repayments exceed £20,000 in any 12-month period, we’ll need to carry out a source of funds check. Please note, monthly interest payments are not included in the £20,000 calculation.

Can I borrow more money later?

Yes, you can apply for extra borrowing (also known as a further advance) if you need it, with a minimum amount of £4,000. You’ll need to take financial advice first. You can choose to pay interest on your extra borrowing and receive a discount if you pay at least 25% of the monthly interest. As with your initial loan, the monthly payment amount can’t be changed once set up, but you can stop making payments at any time. The interest rate for extra borrowing may be different from your original loan.

Will I need to undergo affordability testing?

No, we won’t check if you can afford the monthly payments, as you can stop them at any time. However, your adviser will make sure this type of mortgage is right for you. Remember, if you stop making payments, your interest rate will go up.

Can I add a Cash Reserve Facility?

No, Cash Reserve Facilities are not available on the Advantage Lifetime Mortgage product.

Are there any early repayment charges (ERCs)?

You can repay some or all of your mortgage whenever you like, but an early repayment charge may apply if you repay within the first ten years. These charges are fixed, so you'll always know the cost: Year 0-1 - 8%, Year 2 - 7%, Year 3 - 6%, Year 4 - 5%, Year 5 - 4%, Year 6 - 3%, Year 7 - 2%, Year 8-10 - 1%, Year 11+ - 0%

Are there any waivers for early repayment charges?

We know that sometimes life changes, and you may want to repay your mortgage. That's why we offer two waivers: <ul> <li>Downsizing protection: If you decide to downsize after three years, you won’t need to pay an early repayment charge.</li> <li>Early repayment waiver for joint borrowers: You won’t need to pay an early repayment charge if you choose to repay the lifetime mortgage within three years of the date that the first borrower dies or goes into long-term care.</li> </ul> We also won’t apply an early repayment charge in the following situations: <ul> <li>Repayment takes place after your death or the death of the remaining borrower.</li> <li>You or the remaining borrower move into long-term care.</li> <li>The early repayment charge term has expired.</li> <li>You sell your property and transfer the mortgage to another suitable property.</li> <li>You stay within your 10% annual contribution allowance.</li> </ul>

What happens if I move home?

You can transfer your lifetime mortgage to a new property, as long as it meets our lending criteria at the time.

Advantage Options

Regular payments, lower rates.

Advantage is a lifetime mortgage that offers you a discounted rate, in return for your commitment to making a set monthly interest payment. By accessing a lower rate, you can save more throughout the term of your mortgage. The discounted interest rate will apply for as long as you continue to service the agreed interest payment each month.

Are Advantage Options right for you?

Access lower rates by committing to monthly interest repayments

What are the risks?

A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
Equity release may leave you with limited or no property equity remaining
Equity release will reduce your financial options in the future
A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply
You should always think carefully before securing a loan against your home to repay existing debt
You should understand the importance of being able to maintain your monthly interest payments now and in later life. If payments stop, the discounted interest rate will end and a higher rate will apply. Changes in health, income, or circumstances may affect your ability to maintain payments and manage future borrowing costs.
The discounted rate is conditional on you making monthly interest payments. If these payments stop the discount is removed, a higher rate applies, and unpaid interest is added to the loan, increasing the balance. This can reduce property equity and significantly increase long-term borrowing costs.

Is Equity Release right for me?

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, to help your 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.

Equity Release may not be appropriate:

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 mortgage

Equity release explained

Property wealth is playing an increasingly important part in retirement planning. Our handy guide covers all things equity release.

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Our Lifetime Mortgages

Read our guide on lifetime mortgages, which have been designed with you in mind and can be tailored to meet your individual needs.

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Frequently asked questions

The Advantage Lifetime Mortgage allows you to pay some or all of the monthly interest, which means you could benefit from a lower interest rate. You can choose to pay 25%, 50%, 75% or 100% of the interest each month. The more interest you pay, the bigger your discount. Once your mortgage is set up, your monthly payment amount can’t be changed, but you can choose to stop making payments at any time.
If you’re unable to make a payment, please let us know. You can miss up to three payments over the life of your mortgage, and any missed payments will be added to your loan balance. If you miss more than three payments, you won’t be able to restart them, and your interest rate will increase as the discount will no longer apply. Your mortgage will then switch to a roll-up mortgage, where interest is added to your loan each month.
Yes, you can make voluntary payments of up to 10% of your original loan amount each year without any early repayment charges. These payments can be made by standing order or bank transfer, with a minimum payment of £50. If your voluntary repayments exceed £20,000 in any 12-month period, we’ll need to carry out a source of funds check. Please note, monthly interest payments are not included in the £20,000 calculation.
Yes, you can apply for extra borrowing (also known as a further advance) if you need it, with a minimum amount of £4,000. You’ll need to take financial advice first. You can choose to pay interest on your extra borrowing and receive a discount if you pay at least 25% of the monthly interest. As with your initial loan, the monthly payment amount can’t be changed once set up, but you can stop making payments at any time. The interest rate for extra borrowing may be different from your original loan.
You can repay some or all of your mortgage whenever you like, but an early repayment charge may apply if you repay within the first ten years. These charges are fixed, so you'll always know the cost:

Year 0-1 - 8%, Year 2 - 7%, Year 3 - 6%, Year 4 - 5%, Year 5 - 4%, Year 6 - 3%, Year 7 - 2%, Year 8-10 - 1%, Year 11+ - 0%
We know that sometimes life changes, and you may want to repay your mortgage. That's why we offer two waivers:
- Downsizing protection: If you decide to downsize after three years, you won’t need to pay an early repayment charge.
- Early repayment waiver for joint borrowers: You won’t need to pay an early repayment charge if you choose to repay the lifetime mortgage within three years of the date that the first borrower dies or goes into long-term care.
We also won’t apply an early repayment charge in the following situations:
- Repayment takes place after your death or the death of the remaining borrower.
- You or the remaining borrower move into long-term care.
- The early repayment charge term has expired.
- You sell your property and transfer the mortgage to another suitable property.
- You stay within your 10% annual contribution allowance.

Find an adviser

If you are considering a lifetime mortgage, it is a Financial Conduct Authority regulation that you first seek advice from a qualified equity release adviser, who will help you understand your options and advise on what is right for you. To find one, visit the Equity Release Council.

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Are Advantage Options right for you?

What are the risks?

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Is Equity Release right for me?

Equity Release may not be appropriate:

Equity release explained

Our Lifetime Mortgages

Frequently asked questions

What does the Advantage Lifetime Mortgage offer?

How do I make the monthly interest payments?

What happens if I miss a monthly interest payment or stop making payments?

Can I make extra payments towards my loan?

Can I borrow more money later?

Will I need to undergo affordability testing?

Can I add a Cash Reserve Facility?

Are there any early repayment charges (ERCs)?

Are there any waivers for early repayment charges?

What happens if I move home?

Find an adviser

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New Customer?

Existing Customer?

Are you an adviser?