Frequently asked questions

Questions about our Lifetime Mortgage? You may find the answers here. If there's anything else you'd like to know, call us on 0845 877 6000 - we're here 9am-5pm Monday to Friday.

• Who is eligible for a Lifetime Mortgage? |
• Can you lend against all types of property? |
• How much can I borrow? |
• What can I use the money for? |
• How is the Lifetime Mortgage repaid? |
• How do you calculate the interest? |
• Is there any danger of my estate being left in debt? |
• What happens if house prices change? |
• Will I still own my home? |
• Can I move home if I want to? |
• Can I arrange to leave part of my property value as an inheritance? |
• Will there be any money left over when my home is sold? |
• What if I want to repay the loan? |
• How can I apply? |
• How much will it cost? |
• How long will it take to get the money? |

Who is eligible for a Lifetime Mortgage?

Anyone aged 60 or over, who owns a property worth at least £70,000. The property must be your main residence, located in England, Scotland or Wales, and can be freehold, leasehold or ownership (if in Scotland).

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Can you lend against all types of property?

We can't lend against one-bedroom properties, but we can lend against most other properties as long as they're of standard construction.

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How much can I borrow?

The amount you can borrow depends on your age (with a joint Lifetime Mortgage, this would be the age of the youngest applicant) and the value of your home. Our Lifetime Mortgage Consultant will work this out for you. For a quick idea of the maximum we could lend you, take a look at How much could NatWest lend me?

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What can I use the money for?

Anything that will help you to enjoy your life the way you want to. Help grandchildren onto the property ladder, take the trip of a lifetime or just boost your finances to make sure that you have the cash to do the things you want. It's really up to you, however, we can't lend money for business or investment purposes. You should think carefully before borrowing for reasons unrelated to your home, as this is a secured loan.

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How is the Lifetime Mortgage repaid?

You don't need to make any monthly repayments. The loan - and the interest that's added over time - are paid back when you die, move in with family or move into long-term care, usually from the sale of the house. You can make partial repayments anytime you like, but if you voluntarily pay off your Lifetime Mortgage in full within the first 10 years, we will apply an early repayment charge. This won't apply if it's repaid in full because you die or have to move into long-term care, or if you only repay part of it.

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How do you calculate the interest?

We calculate interest daily and apply it to the loan once a month, by adding up the interest charges for each day and adding this total to the loan.

Remember, more interest will build up than with a conventional mortgage because there are no monthly repayments. The amount we calculate interest on each day will include any interest that's been calculated on the loan up to that date as well. This is what's known as 'compound interest'.

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Is there any danger of my estate being left in debt?

No. Our No Negative Equity Guarantee means that, if your property sells for less than the loan amount, neither you nor your estate will ever have to pay us back more than your home is worth. (As long as the conditions of the mortgage have been met, we've approved the sale price and it reflects the true value of the property.)

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What happens if house prices change?

If house prices increase, you or your estate will still get the benefit. Any increase in house prices will increase the amount of equity you have in your home and this will help to offset the interest added to your loan.

If they decrease, this will reduce the equity in your property and there are no guarantees that there will be money left over once your home is sold. However, as long as the mortgage conditions have been met, our No Negative Equity Guarantee will make sure that neither you nor your estate will ever be left owing us more than your home is worth. If you'd like to leave a percentage of your property value as an inheritance, you can choose our Protected Equity Option. (For full details, see 'Can I leave part of my property value as an inheritance?' below.)

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Will I still own my home?

Absolutely. Provided all the conditions of the mortgage are met, you'll never be asked to leave your property or give up ownership of it.

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Can I move home if I want to?

Yes. If you move home, you can change your Lifetime Mortgage to the new home as long as the new property is suitable as security for the loan.

We'll need to arrange an independent valuation of the new property and you will have to pay for this. We may also need to revalue your old property. If you move to a cheaper property, we may ask you to pay back part of your loan, but this will never be more than the difference in value between the two properties.

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Can I arrange to leave part of my property value as an inheritance?

Yes. You can choose our Protected Equity Option, which lets you set aside a percentage of your property value to leave as an inheritance. This money won't be touched when the loan is repaid. Choosing this option will affect the maximum amount you can borrow.

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Will there be any money left over when my home is sold?

Unless you've chosen our Protected Equity Option (see question above), there are no guarantees that there will be money left over once your home is sold. It all depends on how long the Lifetime Mortgage runs and how much the property is worth at the end of it. However, as long as the mortgage conditions have been met, our No Negative Equity Guarantee will make sure that neither you nor your estate will ever be left owing us more than your home is worth.

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What if I want to repay the loan?

You can repay the loan at any time, but if you repay it in full within the first 10 years, we will apply an early repayment charge. This won't apply if the loan is repaid because you die or have to move into long-term care, or if you only repay part of it. The Lifetime Mortgage is designed to run for the rest of your life - if you're only looking to raise money in the short term, you should consider other options.

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How can I apply?

Call us on 0845 877 6000 to arrange an appointment with a Lifetime Mortgage Consultant. They'll discuss everything with you face-to-face so you understand exactly what's involved, and collect the information they need to produce a detailed proposal for you. Then they'll arrange a second meeting to discuss your proposal and the next steps, including completing the application if you decide to go ahead.

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How much will it cost?

There are certain fees and legal costs involved in setting up your Lifetime Mortgage. You can find full details of these in the table below:

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How long will it take to get the money?

We'll aim to set up your Lifetime Mortgage in about 6-8 weeks, depending on how long it takes to get all the information we need. We'll keep you informed at every stage of the process.

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