Equity Release FAQs

A lifetime mortgage isn't that different from the standard mortgage you probably took out when you first bought your home. It's a loan secured against the value of your home on which interest is charged.

However, unlike a standard mortgage, there are normally no monthly instalments to pay (although some providers may require you to pay the interest on the loan). With both equity release products from LV=, the interest is added to the loan to be repaid on the death of the borrower or if the borrower goes into permanent residential long term care. The loan is usually repaid from the profits of the sale of the property.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

The maximum you can borrow depends on your age and the value of your property. With LV=, this ranges from 20% of the value of your property if you are 60, to 50% if you are 95. You can either borrow a lump sum as a one-off payment or you can choose to borrow a smaller amount initially and agree a maximum loan with us, which you can draw on from time to time over a 15-year period. This way you'll only be borrowing, and therefore paying interest on, the amount you actually need.

Yes, you will if you take out a lifetime mortgage with LV=. As we're a member of SHIP (Safe Home Income Plans) this gives you greater protection as SHIP rules specifically state that customers have the right to remain in the property for life.

A lifetime mortgage is a long-term commitment and you shouldn't consider one if you think you may move in the near future. However, if you decide to move, you may be able to transfer your lifetime mortgage with you to your new property subject to it meeting our lending criteria. We'll allow you to transfer your lifetime mortgage to a smaller property as long as this also meets our lending criteria. We won't charge you any penalties if we request you to repay part of the loan early because you're moving. Please note that you'll have to meet the actual costs of moving home.

Under current tax rules, if you borrow money on your house you don't pay tax on it and there is no stamp duty to pay. But remember that tax rules do change from time to time.

Any references we make to taxation are based on our understanding of current legislation and HM Revenue and Customs practice, which can change.