Re-mortgaging a lifetime mortgage to a cheaper rate
- Previous lifetime mortgage rate was 7%, arranged by a different firm
- By recommending a remortgage with a lower rate, we were able to improve the amount of equity the clients had in their property
Clients’ circumstances
A man in his 70s and a woman in her 60s with a property worth £4 million.
Issues addressed
Their existing lifetime mortgage of £1.6 million had a relatively high interest rate of just above 7%, which meant that the amount owing was increasing rapidly. The couple were concerned about the loss of equity from their property.
The existing lifetime mortgage was only in the name of the husband, which restricted the choice of lenders. It was not possible to switch the mortgage into joint names because of a 13-year age gap and because there was insufficient equity in the property.
Tailored solution provided by John Lamb Hill Oldridge
We recommended a new lifetime mortgage with a lower interest rate. The new loan amount was £1.7 million, providing enough to pay off the previous mortgage and also to pay £60,000 in early repayment charges. The remaining funds were to be used for various home improvements and to provide the clients with liquidity for the future, in the absence of any other accessible funds.
Despite these early repayment charges and the increased borrowing, the reduction in interest rate meant the clients would have £23,000 more equity in their property after only three years than would have been the case had they remained on their previous deal. This benefit will only increase further over time with almost £600,000 in equity in the property after 10 years.
This shows that although the product is known as a lifetime mortgage, the option to remortgage may be available. If you want to find out more about remortgaging to a more favourable arrangement, please get in touch with John Lamb Hill Oldridge today.
Other Insights
‘The pitfalls of business protection’ by Paula Steele, published in Money Marketing
In her latest article for Money Marketing, Paula Steele, Director at John Lamb Hill Oldridge, explores a topic that remains both essential and often overlooked: the pitfalls of business protection. Business protection is a chronically [...]
Paula Steele discusses offshore bonds on the Merryn Talks Money podcast at Bloomberg headquarters
Paula Steele was delighted to speak about offshore bonds on the Merryn Talks Money podcast by Bloomberg on 19 November 2025. In the episode, Paula discussed the advantages and disadvantages of these tax wrappers and [...]
‘Why life and income protection planning is essential for every business’ by Ken Maxwell published in Professional Adviser.
In a recent article for Professional Adviser, John Lamb Hill Oldridge Director Ken Maxwell discusses the importance of life and income protection planning for every business. As well as driving profit and growth, sensible protection [...]