Do Santander Offer Equity Release & Lifetime Mortgages?

Looking for greater flexibility with your mortgage options?

Mortgages for older people can transform your retirement with financial security.

We explain the different options, what's important to consider and the best later life mortgages available.

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Table of Contents

Author Paul Murphy -Later Life Finance Ltd

a homeowner researching over 60s lifetime mortgages with a laptop

Do Santander offer Lifetime Mortgages?

Santander does not directly offer lifetime mortgages or equity release schemes. The bank does not have any lifetime mortgage interest rates or plans to offer new or existing customers, but these are available from the wider market through our later life mortgage broker service. 

Can Santander offer me a Lifetime Mortgage to repay my existing mortgage?

Santander don’t offer retirement interest only mortgages, they refer customers for external advice to Legal & General for equity release solutions. 

Can Santander offer me a Retirement Interest Only Mortgage?

Santander don’t directly offer lifetime mortgages, they refer customers for external advice to Legal & General for equity release solutions. 

Will Santander provide any alternative options to equity release?

Yes, Santander will offer to review your remortgage options on their existing mortgages. This will involve discussing extending existing mortgage terms, and if required they will also run affordability checks for new lending terms. 

What if Santander won't extend my existing mortgage term?

If Santander have declined to extend your mortgage term there are other options to explore. 

If you do not want to downsize to settle your mortgage or you don’t have other assets available, a later life mortgage is another option to consider. These include lifetime interest mortgages and retirement interest only mortgages. 

What can Later Life Finance help me with?

Later Life Finance limited are a broker specialising in mortgages for older borrowers.

Later Life Finance Ltd are an FCA authorised mortgage broker specialising in over 60s remortgages.

We provide an independent, whole of market mortgage advice & brokerage service.

We have access to the full range of lenders available, providing various incentives, such as cash backs, free valuations and discounted interest rates on flexible interest only later life mortgages.

We are authorised and regulated by the financial conduct authority (FCA). As experts in later life mortgages, we review the world of the lifetime mortgage and the important points to consider when deciding whether it is right for you.  Access our free equity release cost calculator for more figures. 

A couple discussing lifetime mortgage examples

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  • Lifetime mortgages allow homeowners over 55 to borrow against their property. With optional repayments the mortgage is settled when the homeowners pass away or go into long term care. 
  • Voluntary repayments mean compound interest can be avoided or reduced to help preserve more equity for your beneficiaries, or for downsizing and settling the mortgage and buying another home. 
  • No negative equity guarantee for Equity Release Council members ensures you will never owe more than your home’s sale proceeds; protecting you and your family. 
  • Possible to port (move) the lifetime mortgage when moving to a suitable property, or sell property and repay debt with sale proceeds (subject to exit fee’s)
  • Downsizing protection to repay without any exit fees if you move home and settle early 
  • Access professional equity release advice with Later Life Finance. We help you determine if a lifetime mortgage suits your needs and review lump sum or drawdown options, voluntary repayments and exit fees when considering over 60’s lifetime mortgages. 
A couple having lifetime mortgages explained by their adviser

Summary

Although Santander don’t offer new and existing customers lifetime mortgages and equity release, there are a large number of mortgage lenders offering flexible later life solutions. 

Using Later Life Finance to review all your mortgage options will help you make an informed decision when comparing all the options available to you.

Lifetime mortgage FAQs

The amount you can release on a lifetime mortgage is usually between 20% and 50% of the home's valuation. This is based on the age of the youngest homeowner and the property type.
If you need to raise more money and have no remaining Drawdown (reserve) Facility, you may be able to take a Further Advance from your lifetime mortgage. This is additional borrowing on top of your existing lifetime mortgage and is subject to the valuation of your home and the balance on your lifetime mortgage.
Equity release companies who adhere to the Equity Release Council codes of conduct offer the option to transfer your lifetime mortgage to a new property if you decide to move. However, certain conditions must be met for the new property to be considered "suitable." A suitable property refers to one that is deemed marketable by the equity release company in the future. For instance, if the new property is located in a flood-prone area, the transfer of the lifetime mortgage may not be permitted. In the case of downsizing to a property of lesser value, you might be required to repay a portion of your lifetime mortgage to facilitate the transfer.
In the case of a lifetime mortgage, you generally do not need to make monthly repayments since the loan, along with the accumulated interest, is settled when your home is eventually sold. Your lifetime mortgage adviser will provide detailed projections of how much you will pay back based on whether you opt to make payments or not.
In the event of you passing away shortly after obtaining a lifetime mortgage, the interest accrued would not have significantly accumulated, resulting in a smaller growth of the debt. If no other homeowner is listed on the lifetime mortgage, the lender requires the mortgage to be settled within 12 months of you passing away. The executors of your will sell the property and utilise the proceeds to settle the debt. The beneficiaries of your estate may opt pay off the debt using cash or a new mortgage and retain ownership of the property. This will depend on factors including your wishes set out in your will, and on whether the property is to be retained or sold, with any remaining equity divided by your beneficiaries. 
Equity release lenders who are a member of the Equity Release Council provide a no-negative equity guarantee. This ensures you will never be required to repay more than the proceeds from the sale of your home to settle the debt. In other words, the lender cannot pursue you for any shortfall between the debt amount and the sale proceeds. This protection is made possible by the no negative equity guarantee, which is upheld by all members of the Equity Release Council. According to this guarantee, the lender is strictly limited to requesting only 100% of the sale proceeds as repayment. They are not permitted to seek additional payment from you, your estate, or your estate beneficiaries.
A typical rate for a lifetime mortgage typically falls between 5.9% and 7%. That said, your rate may be different depending on factors like your loan-to-value ratio and the features included in your plan. It’s important to compare the features of different plans to find the one that best fits your needs.
Lifetime mortgages come with a few risks, such as the possibility of owing more than the value of your home due to accumulated interest. They also require monthly fees and can significantly reduce the amount of inheritance you can pass on to family members. Ultimately, it’s important to consider all of these factors when deciding if a lifetime mortgage is the right choice for you.
Lifetime mortgage interest rates are typically based on your age, the amount of money you need to borrow, and the value of your property. Generally speaking, the older you are and the less you borrow, the lower the rate you can expect. Drawdown lifetime mortgages have interest rates set at the time of further borrowing, whereas the initial lump sum is determined at the time of arranging the plan. So be sure to research what’s out there before making a decision.
Yes, you can pay off a lifetime mortgage early, but there may be fees associated with doing so. Providers have varying levels of early repayment charges which your equity release adviser will discuss with you to ensure you have access to all your options and understand the features and charges. It is best to check with your provider before you decide on the repayment plan.
Lifetime mortgages come in several forms, including lump sum, drawdown and interest-only plans. Each offers different rates and repayment arrangements, so your adviser can tailor the mortgage to meet your needs. Later Life Finance provides access to the whole lifetime mortgage market. We will explain the features, costs and points to consider of each option. This will help you make a balanced decision on the right solution for you.
You can repay an interest-only mortgage with an equity release plan. Lifetime mortgages are the most popular form of equity release and allow optional repayments of interest charges, if you wish. Since monthly repayments are voluntary with a lifetime mortgage, your home is not at risk of repossession if you do not maintain monthly payments.Therefore these plans can be more suitable into retirement years.
An interest-only lifetime mortgage is a type of equity release plan where you can pay the interest off on a monthly basis. This avoids compound interest being added which stops the loan from increasing. This type of mortgage is popular for homeowners who want to maintain equity in the home for inheritance or downsizing purposes.