how it works
A Lifetime Mortgage from New Life Mortgages is a special type of loan which is designed to run for the rest of your life. It is a way of releasing equity from your home by enabling you to borrow money to provide a lump sum and/or to release further sums in the future.
This money does not have to be repaid during the life of the mortgage. You make no monthly payments. Instead, the interest accumulates and is added to the mortgage balance each month.
The loan is secured on your home and the amount you owe us, the loan and all interest due, is only paid back from the sale of your home, after your death or if you go into long term care.
If you are borrowing with your spouse or your partner or somebody else, the money will only need to be paid back following the last surviving of you dying or moving into long term care. Any money left over would belong to your estate.
Your property needs to be mortgage-free or, if there is a mortgage outstanding, this needs to be repaid either before or at the time your new Lifetime Mortgage begins. You can, of course, use the funds released to you to do this.
If, during the period of your loan agreement, you wish to move you may well be able to transfer your Lifetime Mortgage to your new home without paying an Early Repayment Charge. Alternatively, we may be able to arrange a new Lifetime Mortgage for you. Otherwise, you will need to repay the sum you owe us from the money you receive from the sale of your home. Any money left over would belong to you.
If you should decide that you don’t want to continue with your Lifetime Mortgage anymore, you can simply repay the amount you owe us at any time but you may be required to pay an Early Repayment Charge.