Lifetime Mortgage Reviews: 2023 Top Rated
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Table of Contents
Table of Contents
Author Paul Murphy Updated July 2023
If you considering a lifetime mortgage but feeling overwhelmed by the information available, Later Life Finance are here to help you uncover the truth behind lifetime mortgage reviews in 2023.
By understanding how these mortgages work, you can make an informed decision with confidence.
We have access to the best equity release companies and schemes to source you the correct solution for your needs.
Let’s get started.
Lifetime mortgages provide homeowners aged 55 and over with the ability to access equity in their home without selling or making monthly payments, (but still allow payments to preserve equity).
When selecting a provider, factors such as interest rates, fees and plan flexibility are essential for finding the best solution available.
Choosing an Equity Release Council member provides a negative equity guarantee.
You should consider discussing your plans with family members before making any decisions regarding your finances.
We explore what are the pitfalls of a lifetime mortgage, which provider is best for you, and how to apply for a lifetime mortgage.
Understanding Lifetime Mortgages
Lifetime mortgages have gained popularity among homeowners aged 55 and over as they provide a flexible solution to access a percentage of your home’s value without having to sell or make monthly repayments.
But is a lifetime mortgage the same as equity release?, and what factors should you consider when exploring lifetime mortgage providers?
Let’s delve deeper into the world of these mortgages and uncover the essential information you need to make an informed decision.
What is a lifetime mortgage?
A common question we are asked is what is a lifetime mortgage?
A lifetime mortgage is the most popular type of equity release plan and allows homeowners to unlock the equity in your property without having to sell it.
The loan is secured against the property, and no monthly repayments are required during the homeowner’s lifetime, although payments can still be made, if desired.
Instead, the mortgage is repaid when the homeowner passes away or moves into long-term care, with the remaining funds after the mortgage is settled paid to your estate.
This provides a financial solution for homeowners to unlock the wealth in their property while maintaining independence and considering funeral insurance, as well as addressing potential inheritance tax concerns.
How Does A Lifetime Mortgage Work
Lifetime mortgages operate by offering homeowners a lump sum or drawdown loan based on the property’s value. Interest is added annually, and the debt is repaid through the sale of the property when the homeowner dies or moves into long-term care.
If you are considering how much you can borrow with a lifetime mortgage, we can help you calculate all your options and provide detailed illustrations.
This means that homeowners can continue living in their homes without the stress of downsizing or pressure of monthly repayments, allowing them to enjoy their golden years without financial worries.
However, it’s crucial to consult an equity release specialist to ensure you choose the right plan for your needs.
Lifetime Mortgage Reviews: What's best For My Needs?
Our Lifetime mortgage reviews provide valuable insights into customer satisfaction and potential pitfalls to consider when applying for a lifetime mortgage.
Are lifetime mortgages a good idea, and what should you look out for?
When comparing providers, it’s essential to consider both positive and negative reviews, as they can help you make an informed decision that fits your unique needs and preferences.
Let’s explore some of the most common themes found in lifetime mortgage reviews and what they could mean for your decision-making process.
Positive Reviews: Customer Satisfaction and Trustworthiness
Positive reviews often emphasise the certain benefits of lifetime mortgages lenders over another, such as flexibility with the type of property they may lend on, flexible repayment options, and competitive interest rates.
The FCA ensures that customers receive high-quality advice, while the ERC provides a guarantee that the amount owed will never exceed the value of the home, offering peace of mind for homeowners considering a lifetime mortgage.
Additionally, the financial services compensation scheme plays a role in protecting consumers in the financial market.
Negative Reviews: Common Complaints and Red Flags
On the flip side, negative reviews may reveal common complaints and red flags, such as hidden fees, poor customer service, or inflexible terms.
These issues could impact your overall experience with a mortgage provider, making it essential to carefully consider both the pros and cons before making a decision.
By thoroughly researching and comparing providers, we ensure that you’re choosing a mortgage plan that best suits your individual needs and preferences.
Top Lifetime Mortgage Reviews in 2023
In 2023, the top lifetime mortgage providers include Aviva, Canada Life, More 2 Life and Legal & General.
Each of these providers offers different plans, competitive equity release interest rates, and features, catering to a wide range of homeowner needs.
By understanding the unique offerings of each provider, you can make an informed decision about which mortgage plan is the best fit for your financial situation.
Let’s take a closer look at these top providers and what they have to offer.
Aviva offers a choice of two Defaqto 4-star rated lifetime mortgages.
They offer flexible mortgages that allow you draw down money as and when you need it.
They have a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest, up to 10% of the sum borrowed can be repaid per year.
Aviva offer defined exit fees starting at 10% in year 1 which reduces by 1% each year.
Canada Life are an established equity release provider and offer flexible mortgages which allow you draw down money as and when you need it.
They have a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest. Up to 10% of the sum borrowed can be repaid per year.
They also offer a feature called downsizing protection, which offers added flexibility for moving home and settling the plan early.
They have fixed early repayment charges compared to many of the other lenders available.
Legal & General
Legal & General offer two Defaqto 4-star rated lifetime mortgages. They offer flexible mortgages that allow you draw down money as and when you need it.
They offer a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest. Up to 10% of the sum borrowed can be repaid per year.
They also offer a retirement interest only mortgage (RIO), which does not offer the same level of protection as a lifetime mortgage, as there is a risk of repossession if the monthly repayments were defaulted on.
Legal & General offer defined exit fees starting at 10% in year 1 which reduces by 1% each year.
More 2 Life
More 2 Life offer equity release plans include enhanced terms for certain medical issues, which could increase the level of lending available.
They offer flexible mortgages which allow you draw down money as and when you need it.
They have a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest.
Up to 10% of the sum borrowed can be repaid per year.
More 2 Life have several options with their early repayment charge criteria, most of which are fixed and defined.
Later Life Finance
Later Life Finance are technically a broker.
We are passionate about providing expert equity release advice from the whole market on an independent basis.
With access to the best companies, plans and deals available, we can secure the right lifetime mortgage for your requirements.
Get in touch with our experts on 0800 2465228 for advice on all your options.
Factors to Consider When Choosing a Lifetime Mortgage Provider
When choosing a mortgage provider, it’s important to consider factors such as:
By thoroughly researching and comparing providers, we can ensure that you’re getting the best deal and the most suitable plan for your specific needs.
In this section, we’ll explore some of the key factors to consider when evaluating mortgage providers and how to make the most informed decision possible.
Interest Rates and Fees
Comparing lifetime mortgage interest rates and fees among providers is crucial to ensure you’re getting the best deal on your mortgage.
By carefully comparing the interest rates and criteria of each lender, Later Life Finance can ensure you find the correct solution for your overall requirements.
Flexibility and Customisation
Reputation and Customer Service
Safeguarding Your Lifetime Mortgage Decision
Equity Release Council Membership
Membership in the Equity Release Council ensures that providers follow strict rules to protect homeowners.
The council sets stringent regulations and requires providers to offer a negative equity guarantee as part of their equity release plan.
By choosing a provider with Equity Release Council membership, you can have confidence in the safety and security in your home for the years to come.
Negative Equity Guarantee
A negative equity guarantee is a crucial safeguard for homeowners considering equity release.
This guarantee ensures that you will never owe more than the value of your property when repaying the loan, protecting you from potential financial pitfalls.
By choosing a provider that offers a negative equity guarantee, you can have peace of mind knowing that you and your estate are protected from negative equity arising.
Consulting with Family and Financial Advisors
Discussing your decision to release equity with family members and consulting our expert advisers is a vital step in ensuring you’re making the best choice for your situation.
These conversations can provide valuable insights and guidance, helping you to:
weigh the pros and cons of different equity release plans and providers
understand the potential risks and benefits
explore alternative options
make an informed decision
By involving your loved ones and seeking professional advice this will help with making an informed decision.
Calculate Your Equity- Our equity release calculator gives INSTANT RESULTS.
In conclusion, lifetime mortgage reviews and evaluating providers based on factors such as interest rates, fees, flexibility, and reputation is crucial to making the best decision for your financial future.
By researching providers, comparing rates, and seeking expert advice, you can find an equity release plan that meets your unique needs and preferences.
Later Life Finance take the time to thoroughly understand your options and help you make a decision that best aligns with your goals and circumstances, by considering lifetime mortgage reviews and discussing your plans with later life finance you will be in the best possible position to make an informed decision.
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