One of the most common things I hear from people considering a Lifetime Mortgage is, ‘It all sounds quite complicated.’ The good news is that whilst the process to releasing equity from your home involves several stages, understanding what happens at each step makes it far less daunting.
Let me explain exactly what happens from your first meeting with me through to completion and receiving your funds. I’ll also touch on typical timescales, documentation needed, and how to prepare for each stage.
Why the Lifetime Mortgage Process Has Multiple Steps
Before I outline the specifics, it’s worth understanding why the Lifetime Mortgage process involves several stages.
- Consumer Protection
Multiple review points ensure you understand what you’re agreeing to and have opportunities to ask questions or change your mind.
- Legal Requirements
Borrowing significant sums secured against your property requires correct legal processes to protect both you and the lender.
- Property Verification
Lenders need a professional valuation to confirm your property’s value and condition before advancing funds.
- Independent Advice
You must receive independent legal advice to ensure you understand the implications of your decision.
These protections benefit you, even though they extend the timeline slightly. The Lifetime Mortgage process typically takes around six weeks for straightforward cases, though more complex situations might take longer, up to ten weeks.
The 13-Step Lifetime Mortgage Process
At Jane Jackson Financial Solutions, I follow a proven 13-step process to ensure you have complete information upfront and that we cover all possible variables. This verified procedure safeguards smooth completion of your Lifetime Mortgage.
Step 1: Initial Consultation and Fact-Finding
Your journey begins with a thorough two-hour consultation covering your circumstances, needs, and goals. We’ll discuss why you’re considering releasing equity, your property and financial situation, family circumstances, and health. I’ll explain how a Lifetime Mortgage works, product options, interest compounding, and estate implications. There’s absolutely no pressure, and if you decide a Lifetime Mortgage isn’t right for you, this is perfectly fine.
Step 2: Product Research
After our initial meeting, I research the market to find products matching your needs. I work with a panel of reputable lenders, all members of the Equity Release Council, comparing interest rates, features, and terms to identify the most suitable options.
Some products offer features like drawdown facilities (taking money in stages), inheritance protection (guaranteeing a percentage of your property value for beneficiaries), or voluntary repayment options. I’ll identify which features benefit your specific situation.
Step 3: Document Collection and Verification
You’ll need to provide proof of identity, in the form of a valid passport or driving licence, proof of address, such as a recent utility bill or council tax statement, property deeds or mortgage statement if applicable, and pension details if relevant. Identity documents must not be expired. Getting your documents ready early prevents delays later.
Step 4: Compliance Department Approval
Your application and all supporting information go to the compliance department for review. This independent check ensures everything is in order and that a Lifetime Mortgage is suitable for your circumstances. This step protects you by providing an additional layer of oversight beyond my own advice.
Step 5: Second Review Appointment and Signing
Once compliance approval is received, we’ll have a second meeting to review everything in detail. I’ll present personalised illustrations showing exactly how much you can release, what the interest rate will be, how the debt will grow over time at 5, 10, 20, and 30 years, what costs are involved, and what would be left for inheritance at different timeframes.
This is your opportunity to ask any remaining questions and ensure you’re completely comfortable proceeding. If you’re happy to continue, you’ll sign the application paperwork during this appointment.
Step 6: Application Submission
With your signed application, I submit everything to your chosen lender. The lender reviews your application and confirms they’re willing to proceed, subject to property valuation and legal work.
Step 7: Solicitor Appointment
You’ll need an independent solicitor to represent you throughout the process. You can choose your own solicitor, or I can recommend specialists experienced in Lifetime Mortgages. Your solicitor’s job is to explain the legal implications, ensure you understand what you’re signing, conduct necessary property searches, and protect your interests throughout.
Step 8: Property Valuation
The lender arranges for a qualified surveyor to visit your property and conduct a valuation. This typically happens within 1-2 weeks of application submission. The surveyor assesses your property’s market value and condition, confirms it meets lending criteria, and identifies any issues that might affect the loan.
You don’t need to do anything special to prepare for the valuation apart from ensuring the surveyor can access all areas of your property. Most valuations take 30-60 minutes.
Step 9: Solicitor Instruction
Once the valuation is complete and satisfactory, the lender formally instructs your solicitor to proceed with the legal work. Your solicitor receives the lender’s requirements and begins preparing the necessary documentation.
Step 10: Resolving Lender Queries
Sometimes the lender or solicitor raises queries during the process. I handle all communication between you, the lender, and solicitors, resolving queries quickly to keep everything moving smoothly. You don’t need to chase anyone yourself – that’s my job!
Step 11: Mortgage Offer Issued
When the lender is satisfied with everything, they issue a formal mortgage offer. This document confirms the amount being lent, any interest rates, terms and conditions, and completion requirements. Your solicitor will review this offer carefully and explain it to you in detail.
Step 12: Home Visit for Final Signing
Your solicitor will arrange to visit you at home for final signing of the legal documents. This usually happens within a week or two of receiving the mortgage offer. During this visit, your solicitor ensures you understand everything you’re signing, confirms you haven’t been pressured into proceeding, answers any last-minute questions, and witnesses your signature on the legal documents.
This home visit is an important customer protection, giving you a final opportunity to ask questions in the comfort of your own home without any pressure.
Step 13: Completion and Funds Released
After you’ve signed the legal documents, your solicitor confirms completion with the lender. The lender then releases the funds, which are typically transferred within a few days. If you’re clearing an existing mortgage, those funds are sent directly to your current lender. Any remaining money comes to you or is held in your solicitor’s account if you’ve arranged a drawdown facility.
What Can Delay the Process?
Understanding potential delays helps you prepare and avoid them where possible:
- Expired identity documents – Always check expiry dates before starting
- Property issues – Problems revealed during valuation
- Incomplete documentation – Missing or incorrect paperwork
- Solicitor communication delays – Slow responses from legal representatives
- Complex ownership situations – Unusual property arrangements requiring extra checks
More complex situations might take 8-10 weeks rather than six. I keep you informed of progress and work to resolve any delays quickly.
What Happens After Completion?
Once you’ve received your Lifetime Mortgage funds, you can use them for whatever purpose you planned. Many people find it helpful to keep a record of how they’ve used the money, particularly if they’ve given some to family members, for clarity when managing their estate eventually.
You’ll receive annual statements from your lender outlining interest accrued. Most Lifetime Mortgage products allow voluntary repayments if you ever want to reduce the debt, though you’re never obligated to make payments. If your circumstances change and you’d like to make repayments, contact your lender to discuss their processes.
Understanding Costs
The Lifetime Mortgage process involves arrangement fees, valuation fees, legal fees, and adviser fees. All costs are typically added to your loan rather than paid upfront. In your second appointment, I’ll provide a complete breakdown, so you understand exactly what you’re paying.
Support Throughout Your Journey
From initial enquiry through to completion and beyond, I’m here to ensure you understand each stage, feel comfortable with your decisions, and have someone managing all the complexity on your behalf.
If you’re ready to start the equity release process or would like to discuss whether it’s right for you, I offer free initial consultations to explore your circumstances and ensure you understand everything before making any commitments.
Frequently Asked Questions
Ready to Explore Your Options?
If you’d like to discuss your options in a friendly, no-obligation consultation, I’d be happy to help. I can visit you at home in Staffordshire, the surrounding counties, or arrange a video call if you’re further afield.
Call me on 07990 836455 or get in touch here to book your free consultation.
Important Information
A lifetime mortgage is not suitable for everyone, and it is important to seek financial advice before taking any action. All other options available should be explored before choosing equity release.
Interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home potentially to nothing. Please discuss with your family and beneficiaries.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Jane Jackson Financial Solutions is a trading name of Just Mortgages Direct Limited, an appointed representative of The Openwork Partnership – one of the UK’s largest Financial Advice networks with over 4,500 advisers nationwide.
