Lifetime mortgages

A mother and daughter enjoying a walk on a pebble beach.

Release equity from your home as tax‑free cash

Co-op Insurance Services introduces you to Legal & General, our lifetime mortgage partner.

What is a lifetime mortgage?

A lifetime mortgage is a loan secured on your home and is a form of equity release.

If you are aged 55 or over, it could help you release tax-free cash from your home without moving out.

How much cash you can release is based on your age and the value of your home and you can claim it as one lump sum or a series of smaller sums.

How you use the money is up to you but some examples include:

  • making home improvements
  • going on a dream holiday
  • helping children or other family members buy their own property
  • paying off loans or boosting your income for a better quality of life.

If you gift the money, the recipient may have to pay inheritance tax in the future.

You should also think carefully before securing other debts against your home.

Am I eligible for a lifetime mortgage?

To be eligible for a lifetime mortage you must meet certain criteria:

  • you and anyone else on the mortgage are at least 55 years old
  • you and anyone else on the mortgage live in the UK
  • your home is worth at least £100,000
  • you own your home and have little or no mortgage left to pay.

How does a lifetime mortgage work?

Borrow against your home

You borrow money against the value of your home.

A lifetime mortgage will reduce an inheritance and may affect means tested benefits.

Retain home ownership

You retain ownership of your home, meaning that you can live in it for the rest of your life if you choose to.

Repayment

When you, or the final borrower on the mortgage, die or move into long-term care, the mortgage will need to be repaid in full, usually through the sale of your home.

The total amount to repay is the original loan amount plus any unpaid interest.

Why choose us?

We're proud to partner with market leader Legal & General to offer access to award‑winning lifetime mortgages.

No negative equity guarantee

Legal & General products have a no negative equity guarantee, this means that you will never owe more than the value of your home.

Expert advisers

Legal & General's expert advisers understand your personal needs and make recommendations tailored to you. Plus they don't work on commission so you'll never be put under pressure to buy.

Fixed interest rates

The interest rate that you pay on your lifetime mortgage is fixed for the duration of the mortgage.

Award-winning provider

Legal & General won Best Equity Release Provider at the Moneyfacts® Awards 2021.