Can you remortgage a lifetime mortgage?

Yes, it is possible to remortgage a lifetime mortgage, but there are several important considerations and potential challenges to keep in mind. Remortgaging a lifetime mortgage involves refinancing the existing loan with a new lender or a new product from the same lender. Here’s what you need to know about remortgaging a lifetime mortgage:

  1. Eligibility: Not all lifetime mortgages can be remortgaged, and the ability to do so may depend on the terms of your existing lifetime mortgage contract and the policies of the new lender. It’s important to review your existing agreement and consult with both your current lender and potential new lenders to understand your options.
  2. Reasons for Remortgaging: People consider remortgaging a lifetime mortgage for various reasons, including seeking better interest rates, more favorable terms, additional borrowing, or switching from one type of lifetime mortgage to another. Each lender might have its own criteria for considering remortgage applications.
  3. Financial Assessment: Just like with the initial lifetime mortgage, lenders will conduct a financial assessment to ensure that you meet their criteria for remortgaging. They will assess factors such as your age, health, property value, outstanding loan balance, and your ability to meet new repayment terms.
  4. Early Repayment Charges: If you’re considering remortgaging a lifetime mortgage before the agreed-upon end date of your existing loan, you should be aware of potential early repayment charges. These charges could be substantial and might impact the overall cost-effectiveness of remortgaging.
  5. Fees and Costs: Similar to any mortgage or remortgage, there can be associated fees and costs, including arrangement fees, legal fees, valuation fees, and potentially exit fees from your existing lender. It’s important to calculate these costs against the potential benefits of remortgaging.
  6. Professional Advice: Given the complexities involved in remortgaging a lifetime mortgage, it’s highly recommended to seek advice from both financial advisers and legal professionals who are experienced in equity release and remortgaging. They can help you evaluate the feasibility of remortgaging, assess the potential costs and benefits, and guide you through the process.
  7. Benefits and Risks: Remortgaging a lifetime mortgage could lead to better terms, lower interest rates, or additional borrowing, providing potential financial benefits. However, it also involves risks and costs that need to be carefully weighed against the advantages.

In conclusion, while it is possible to remortgage a lifetime mortgage, it’s a decision that requires careful consideration, thorough research, and professional guidance. The specifics of your situation, the terms of your existing lifetime mortgage, and the offers available from potential new lenders will all play a role in determining whether remortgaging is a suitable option for you.