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. 

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.

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.

Since the “mini-budget” of Autumn of 2022 we have seen some sharp rises in interest rates and in addition most lenders reduced the maximum amounts they would be prepared to lend, the Loan to Value or (LTV). Many products were withdrawn and some lenders decided to withdraw until some stability came back to the market. At the time of writing, January 2023, rates have dropped back from the peaks of November and December but remain higher than they were in early 2022.

Calculating what you could borrow is now very much an individual process but the fundamentals remain.

If you want an indication of what could be borrowed, please take a look at my parent website Yorkshire Equity Release (Link opens a new tab) and fill in the details required in our calculator.

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