Lifetime mortgage calculator

How much could you borrow with the Saga Lifetime Mortgage?

If you’re looking for ways to release equity from the value of your home, one of the first things you’ll want to know is how much you can borrow. Whether you’re looking to free up some cash for home improvements, take a holiday or live comfortably in retirement, you can start by using our free lifetime mortgage calculator to see how much you might be able to get.

Why use the Saga Lifetime Mortgage calculator?

To be eligible for equity release you must be aged 55 or over and own a UK home worth £70,000 or more. The amount of equity you’ll be able to release will depend on your age, health, and the value of your home. To give you an idea of how much equity you may be able to release, you can use our quick and easy lifetime mortgage calculator.

Our free lifetime mortgage calculator gives you a guide to how much cash you could release but doesn’t constitute an actual quote. The actual amount you could borrow is based on your individual circumstances and could be more or less.

Lifetime mortgages explained

A lifetime mortgage is a long-term loan secured against your home that gives you tax-free cash, either as one lump sum payment, or an initial lump sum payment with access to an agreed cash facility which enables you to release further funds, as and when you need them. You pay the money back along with the interest at the end of the loan period, which is usually when you (or the last borrower if borrowing jointly) die or move into permanent long-term care. Until then, your home still belongs to you.

With some lifetime mortgages you can pay off some or all of the interest in monthly payments as you go, which can reduce the amount you need to pay back overall. Find out more about repayments and how interest works.

How does a lifetime mortgage work?

When you take out a lifetime mortgage:

• The amount you can borrow is calculated using the age of the youngest applicant and the value of the property. In some cases, health and lifestyle can also be taken into account which could mean that you're able to borrow more
• You receive an initial lump sum and with some products, the ability to drawdown further funds as and when you need them
• You don’t have to make any monthly repayments of the loan or the interest
• The loan is usually paid back, plus interest, when you, or the last borrower if borrowing jointly, die or go into permanent long-term care
• The loan is usually repaid by selling the property, but other funds can be used
• The interest rate is either fixed, or variable but capped, and is typically higher than for standard mortgages
• With a lifetime mortgage the interest is compounded – that means you’ll pay interest on the interest (unless you decide to make full monthly interest payments).

A lifetime mortgage reduces the value of your estate, and could affect the amount of inheritance you can leave your beneficiaries. Taking a tax-free lump sum may also affect your eligibility for some means-tested state benefits.

To make sure that a lifetime mortgage is the right choice for you you must take financial advice and understand whether they are something you should consider.

What is the Saga Lifetime Mortgage?

The Saga Lifetime Mortgage is the product available exclusively through Saga Equity Release and is provided by Just. It offers a range of flexible options and can be tailored to you, including:

• You can receive your money in a lump sum or a smaller amount initially then additional amounts from a pre-agreed limit
• You may be able to pay off some or all of the monthly interest to help reduce the overall cost of the loan
• Certain health conditions and lifestyle factors that could mean you are able to borrow more or could receive a better interest rate than people who don’t have these health and lifestyle conditions.

What does The Saga Lifetime Mortgage offer?

The exclusive Saga Lifetime Mortgage includes:

• A 6-month Money Back Guarantee if you change your mind: If you no longer need the money, you can pay back what you borrow within six months of the completion date of your initial advance. You won’t need to pay any interest or any early repayment charges – you just pay the money back and walk away. To be eligible for this guarantee your initial advance must not exceed £150,000. There are other eligibility terms that you need to be aware of and you can find all of these on our Terms and Conditions page
• The Saga Service Promise: Just will aim to have your money released to your solicitor's account within 40 working days of your application being received and accepted by Just - the provider of the product. This promise will not apply if you’re using the Saga Lifetime Mortgage to purchase a new property, rather than re-mortgaging an existing one. (T&Cs apply)

Why get a lifetime mortgage?

A lifetime mortgage lets you release some of the money you have tied up in the value of your home so that you can use that money for other things without having to sell up and move.

Taking out a lifetime mortgage might be the right option for you to release money to use for home improvements or to help a child get on the property ladder. Please be aware that gifting is subject to inheritance tax.

There may be alternatives available to taking out equity release so it's essential to seek financial advice and make sure you're choosing the right option for you.

Is a lifetime mortgage right for you?

The Saga Lifetime Mortgage might be recommended to you if you meet the following eligibility criteria:

• You, or the youngest borrower if borrowing jointly, are aged 55 or over
• Your property is in the UK
• Your property is worth £70,000 or more.

Before making a decision about any equity release product, you must receive professional financial advice. Saga Equity Release can offer support and advice in a number of ways:

1. Calculation. Use our lifetime mortgage calculator to calculate how much equity you may be able to release. The Saga Equity Release team will then contact you to make sure your details are correct and to see if you have any questions.

2. Talk with someone. If you’re ready to explore further, you can make an appointment with an adviser who will assess your details and go through all your options – with no obligation. If the Saga Lifetime Mortgage is suitable for you, your adviser will give you their recommendation.

3. Your options. Your adviser will complete a detailed overview of your financial circumstances, advise you of the alternatives and the risks, and help you decide if the Saga Lifetime Mortgage is right for you. If you choose to go ahead, your adviser can help you to complete the paperwork. Once all the legalities are completed your cash will be released.

The advice you receive through Saga Equity Release is provided by HUB Financial Solutions. If you decide to take out a Saga Lifetime Mortgage you'll need to pay an advice fee of £799. The Saga Lifetime Mortgage is provided by Just. Just is a trading name of Just Retirement Money Limited. A lifetime mortgage is a loan secured against the value of your home.