Later Life Lending

The later life lending market has been an area of significant change in the past ten years. A combination of innovative products and regulatory changes has revitalised later life lending, with both specialist and high street lenders launching products to capture the market.

The focus of the products is to provide older customers with improved options for later life lending. An ageing population coupled with the endowment policy crash, has resulted in a significant number of older customers looking for a product to meet their later life lending needs.

Currently, there are two main products on the market: lifetime mortgages and retirement interest only (RIO) mortgages.

Lifetime mortgages (equity release mortgages)

Lifetime mortgages are aimed at over-55s, and the mortgage is repaid when the last person living in the property dies, sells the property or goes into long-term care. One of features of this product is that no payments are required during the term of the mortgage. The product is intended to enable borrowers to unlock the equity built up in their property.

RIO mortgages (Retirement interest only)

RIOs are similar to standard interest-only mortgages as the interest on the mortgage is paid monthly.  Like a lifetime mortgage, the mortgage is repaid when the borrower dies, goes into long-term care or when the property is sold. There is no minimum or maximum age limit for this type of product.

Why MM is the first port of call for lenders and borrowers

For Borrowers: Whilst the flourishing of the market is welcome, it is vital that you have the correct advice and understand both the benefits and responsibilities of these products. Most solicitors do not have great experience in this area while MM are recognised for their knowledge and expertise.

If you would like further advice contact our New Business department who will be delighted to assist, or 0141 333 9688 option 3.

For Lenders: Few legal firms in Scotland have the insight into the later life market as MM. From the drafting of original documentation, in-life management through to separate representation or assisted representation, MM are the single Scottish legal provider you require.

For further information on how MM can assist, please contact Allan Radlow, Senior Partner,  or Fallon Sara Spencer, Senior Associate and Head of Specialised Lending,


LendingFallon Sara Spencer