Lloyds Bank Lifetime Mortgage

A Lloyds Bank Lifetime Mortgage can release money held in your home while you remain living there. The funds may be allocated to one main purpose or shared among several plans.

• Remain at home after the money has been released.
• Use the funds to help children or grandchildren with a first home.
• Choose a plan without required regular monthly payments.
• Release tax-free money from the value built up in your property.
• Consider making interest payments to help preserve more of the home’s equity.
• Access a fixed rate shown at 4.89% APR.
• Include the arrangement within wider family and tax planning.

Send a free, no-obligation enquiry below. You can enter the estimated property value, the required amount, and any remaining mortgage.

How the lifetime mortgage works

The mortgage is secured against the home. You keep ownership of the property and can continue living there for the life of the plan.

The money can be paid as one lump sum. A reserve may also be arranged so that smaller amounts can be drawn later. This can suit a homeowner with an immediate expense who wants to keep some borrowing capacity available for future years.

A separate overview of Lloyds Bank’s equity release options may help when comparing a lifetime mortgage with other ways of using property wealth.

Borrowing based on the home’s value

The amount available is linked to the property’s valuation and the homeowner’s age. The reference plan allows borrowing of up to 70% of the property’s value.

A home valued at £250,000 could therefore support borrowing of up to £175,000. The chosen amount can be lower when a smaller release is enough for the intended purpose.

Loan-to-value is the percentage of the home that is being borrowed. A £120,000 loan against a £300,000 property has a loan-to-value of 40%. This figure helps show how much equity remains in the property at the start.

Homeowners who want to compare a payment-based alternative can read about Lloyds Bank’s lifetime interest-only mortgage options.

A free home valuation

A free home valuation provides the figure used for the lending calculation. The valuer considers the property type, condition, location and recent local sales.

The first enquiry can use an estimated value. The formal valuation then confirms the figure used for the mortgage offer.

A homeowner may choose to release less than the maximum. Keeping the initial advance close to the amount required can leave more equity in the property and may make later planning easier.

More information about borrowing after retirement is available under the Lloyds Bank pensioner mortgage choices.

Repaying an existing mortgage

A lifetime mortgage can repay an existing residential mortgage when its term is ending. It can also clear an interest-only balance that remains outstanding at maturity.

The existing lender is repaid during completion. Any extra money included in the new arrangement can then be released to the homeowner.

This can replace a mortgage that requires monthly payments with a plan where regular payments are optional. It may also allow the homeowner to remain in the family home without arranging a sale.

The guide to Lloyds Bank lifetime interest-only mortgages provides another route for people who prefer to pay the interest each month.

Optional monthly repayments

Regular monthly payments are not required on the standard lifetime mortgage described here. Interest can be added to the balance instead.

Some plans allow voluntary monthly repayments. A homeowner can pay part of the interest, all of the interest, or an amount agreed to that fits the household budget.

These payments may be useful in years when income is comfortable. The payment can then be reduced or stopped in accordance with the terms of the chosen plan.

A second page covering Lloyds Bank lifetime mortgage features offers a further comparison of flexible repayment choices.

Funding work around the home

Property wealth can pay for home improvements without using savings set aside for everyday living. The money may cover a new kitchen, bathroom, roof or heating system.

It can also be used for replacement windows, insulation, solar panels or work that makes the home easier to use. A level-access shower, a wider doorway, or a stairlift can support comfortable living in later years.

Some people release one amount for a complete renovation. Others divide the budget between urgent repairs and work planned for later.

Family gifts and inheritance planning

Released money can be passed to children or grandchildren during the homeowner’s lifetime. It may help with a house deposit, education, a wedding or a family business.

A lifetime mortgage can also sit alongside inheritance tax planning. The mortgage balance, lifetime gifts and the value remaining in the estate can be considered together.

The timing and size of a gift can be discussed with a solicitor or tax adviser. The mortgage advice can then focus on the amount of property wealth needed to support the plan.

Homeowners comparing fixed-term and income-led arrangements can also review Lloyds Bank’s retirement mortgage options.

Credit history and the application

A varied credit history can be explained during the enquiry. Missed payments, defaults, county court judgments or older credit problems can all be included in the information supplied.

The property value and the equity available remain central to a lifetime mortgage application. Existing balances can be listed so that the amount needed is clear from the start.

Some homeowners use part of the release to clear mortgage arrears or other borrowing. This can consolidate several payments into a single property-based arrangement.

A broader view of later-life applications is available in the Lloyds Bank pensioner mortgage guide.

Lump sum or money held in reserve

A lump sum can suit a purpose that needs the full amount straight away. This may include repaying a mortgage, completing building work or making a family gift.

A reserve can cover costs that will arise over several years. The homeowner can draw smaller amounts as needed rather than taking the full facility at once.

Interest normally starts on each amount after it has been released. This makes a reserve useful for future home maintenance, travel or family support.

Readers who want another version of the product information can visit the page on Lloyds Bank’s equity release features.

Joint applications and retirement income

Joint homeowners normally apply together. The ages of both applicants, the property ownership and the amount required are included in the assessment.

Pension income can still be useful when comparing a lifetime mortgage with a retirement interest-only mortgage. State Pension, workplace pensions and private pension income can show which structure feels most comfortable.

A couple may prefer no required monthly payment. Another household may decide that paying some or all of the interest suits its income.

The page on Lloyds Bank retirement lending options gives a wider comparison for older borrowers.

Preparing the figures

Start with the estimated property value, the amount required and the balance of any mortgage secured against the home. These three figures give the enquiry a clear shape.

The property type, tenure and postcode are also useful. A leasehold application can include the remaining lease term, while a freehold application can proceed using the title and property details.

A recent mortgage statement confirms the balance due. A short list of the intended uses of the money helps distinguish the immediate amount from any that may be kept in reserve.

These details also help compare a lump sum with a reserve facility before the formal valuation is arranged.

Common questions

How much can be released?

The reference plan allows borrowing of up to 70% of the property’s valuation. A lower amount can be selected when it meets the homeowner’s plans.

Can the money clear an interest-only mortgage?

Yes. The released funds can be used to repay the balance when an interest-only mortgage reaches the end of its term.

Are monthly payments required?

No regular monthly payment is required on the standard lifetime mortgage. Suitable plans may still permit voluntary repayments.

Can the money be used for several purposes?

Yes. One release can be divided between mortgage repayment, home improvements, family gifts and a cash reserve.

Can I stay in my home?

Yes. The arrangement is designed to let the homeowner continue living in the property while the plan remains in place.

Lloyds Bank company and contact details

Lloyds Bank plc: Lloyds and Lloyds Bank are trading names of Lloyds Bank plc. The company number is 00002065. The registered office is 25 Gresham Street, London EC2V 7HN. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under reference number 119278.

Previous names of the company 00002065: Lloyds TSB Bank plc, Lloyds Bank plc, Lloyds Bank Limited, Lloyds, Barnetts and Bosanquets Bank Limited, and Lloyds Banking Company Limited.

Lloyds Banking Group plc: The parent company is registered under company number SC095000. Its registered office is The Mound, Edinburgh EH1 1YZ. Previous names include Lloyds TSB Group plc and TSB Group Public Limited Company.

Bank of Scotland plc: This group banking entity has company number SC327000 and a registered office at The Mound, Edinburgh EH1 1YZ. It is authorised and regulated under reference number 169628.

HBOS plc: HBOS plc is registered under company number SC218813, with its registered office at The Mound, Edinburgh EH1 1YZ.

Website: https://www.lloydsbank.com/
Lifetime mortgage enquiries: 0345 122 1443
General mortgage enquiries: 0345 603 1637
General customer service: 0345 300 0000
Calling from outside the UK: +44 1733 347 007
Legal information: Lloyds Bank legal entities
Telephone directory: Lloyds Bank contact numbers