Key things to consider

Borrowing against the equity in your home is a big financial decision and one that we recommend you discuss with your family. We've put together some key points below to help you and your family decide whether a Lifetime Mortgage could be right for you.

Are you considering a Lifetime Mortgage for the right reasons?

1. To improve your quality of life in retirement (make home improvements, supplement your income or pay for home care).
2. To purchase a luxury item you've always wanted (like a brand new car, the holiday of a lifetime or a second home).
3. To give financial support to your family (for example, money towards a first home for your children or grandchildren, or help with school or university fees).

Our Lifetime Mortgage shouldn't be used to raise cash in the short term - it's a loan designed to run for the rest of your life. If you're likely to want to repay the mortgage early, you should consider other options. We will apply an early repayment charge if you choose to pay it off in full within the first 10 years. This won't apply if the mortgage is partly repaid, or if it's repaid in full because you die or move into long-term care. You should also think carefully before borrowing for reasons unrelated to your home, as this is a secured loan.

Have you looked at all the options?

There might be a better way for you to boost your income, like moving to a smaller home or making sure you're getting all the state benefits you're entitled to. If you need the money for home improvements or repairs (for disability or health reasons), first check whether you're eligible for financial help from your local authority or other organisations.

Do you understand the risks associated with our Lifetime Mortgage?

• Releasing equity will reduce the value of your estate - and any inheritance you might leave. This is because there are no monthly repayments, so more interest will build up than with a conventional mortgage.
• Taking a lump sum or monthly amounts from an equity release product could affect your potential entitlement to any state benefits.

A Lifetime Mortgage isn't for everyone, but if you want it for the right reasons, you understand the product and you talk things through with your family, it could give you the lifestyle you want.

Please read this important legal information