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About our lifetime mortgage

Our lifetime mortgage is designed with your long-term happiness and security in mind. Here is what you can expect if you take out a lifetime mortgage with Riverton.

What is a lifetime mortgage?


A lifetime mortgage is a special type of loan which is usually designed to run for the rest of your life, which means that you borrow money that is secured on your home. The amount that you can borrow depends on a number of factors such as your age and the property value. Interest is added throughout the life of the mortgage.

 

The amount you owe is usually paid back from the proceeds of the sale of your home after your death or after you go into long-term care. If you are borrowing with someone else this would be after the death or entry into permanent long-term care of the last borrower. Any money left over would be paid to your beneficiaries.

 

This type of mortgage is fully advised, meaning you must seek financial advice prior to applying. Your financial adviser will walk you through the whole process and submit your application for you once you are ready.

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Key features

With a Riverton Lifetime Mortgage, you will:

  • Always have a fixed interest rate

    This means the interest rate is fixed for the life of your mortgage and you will have the certainty it will never change. 

  • Be able to make optional repayments

    There are no monthly repayments to make, although you have the option to repay some of the mortgage each year. This gives you the freedom to reduce the mortgage balance, however, if you decide to repay your mortgage early in full, or repay more than the annual repayment allowance, there may be a charge. Your financial adviser can explain these costs to you before you apply. 

  • Have a "No Negative Equity" Guarantee

    This means that you or your estate will never owe more than what the property is sold for. 

  • Always know what you owe

    Our fixed repayment charges mean you will always know the cost of paying off your mortgage early if your circumstances change. You can also track your balance through your online account. 

These are just a few key features of our lifetime mortgage. To explore your options or for any further information, please speak to a financial adviser who will be able to help assess your suitability. 

Lending policy

Although other criteria will apply, here are a few of the key items to consider. Upon application your property will be fully assessed.
  • You are aged between 55-85
  • Your property is worth £125,000 or more
  • Your property is in England, Wales, or mainland Scotland and is your primary residence
  • You want to borrow at least £20,000
  • You are a UK resident or have the right to reside in the UK
  • You are aged between 55-85
  • Your property is worth £125,000 or more
  • Your property is in England, Wales, or mainland Scotland and is your primary residence
  • You want to borrow at least £20,000
  • You are a UK resident or have the right to reside in the UK

Fees and costs

Application costs

  • Advice fee

    Getting professional advice is essential to ensure that a lifetime mortgage is right for you. The financial adviser you choose will charge a fee which is payable by you. 

  • Valuation fee

    We pay for your home to be valued by a qualified Surveyor.

  • Product fee

    There is no product fee on our lifetime mortgage.  

     

  • Legal fee

    You will be responsible for the costs of independent legal advice and your own conveyancing. 

Mortgage costs

  • Early repayment charges

    If you decide to repay some or all of your mortgage early, there may be a charge. This is set out in your lifetime mortgage documents.

  • Additional borrowing

    If you want to borrow more in the future, you will need to get financial advice. The fee for the financial advice and the legal costs will need to be paid by you. 

  • Interest

    Interest is added to the mortgage throughout the life of the mortgage meaning the amount owed will increase over time.

  • Moving home

    If you want to move, you might be able to transfer the lifetime mortgage to a new property. This will involve new valuation fees for the new property and additional legal fees.  

Understanding the costs involved with a lifetime mortgage is important. We want you to have a clear picture of what to expect so we have set out some of these in the list above, however this is not an exhaustive list, so it is best to speak to your financial adviser if you have any questions or concerns. 

Paying back your mortgage

Interest builds up and is added throughout the life of the mortgage. The amount you owe is usually paid back from the proceeds of the sale of your home after your death or after you go into long-term care. If you are borrowing with someone else this would be after the death or entry into permanent long-term care of the last borrower. Any money left over would be paid to your beneficiaries.

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