Yes, a lifetime mortgage can be used to purchase a new home in Grimsby.

This is an increasingly popular option among buyers aged 55 and over who have a deposit available but may not want, or be able, to take on a standard mortgage.

Using a lifetime mortgage in Grimsby for a house purchase gives you the flexibility to move into a home that better suits your lifestyle, without the pressure of monthly repayments unless you choose to make them.

How Does a Lifetime Mortgage for Purchase Work?

Rather than releasing equity from a property you already own, this type of lifetime mortgage is arranged as part of your house purchase.

You provide a deposit, and the rest of the funds are made up through the mortgage. The property you’re buying becomes the security for the loan.

The amount you can borrow depends on your age, the value of the property, and the deposit you’re putting down. Some lenders also consider your health and the construction type of the property.

This setup can make it possible to afford a higher-value property than using savings alone, and all without needing to meet affordability checks for monthly repayments.

Though optional, many homeowners choose to pay the interest each month to keep the total cost down and protect more equity for the future.

Who Typically Uses This Type of Mortgage?

We often see this option used by older homeowners downsizing or relocating, those leaving rented accommodation, or people separating later in life who need to fund a new home.

It’s also occasionally suitable for first time buyers in Grimsby over 55 who have a significant cash deposit but limited income.

It’s a practical route for those who want to secure a long-term home without committing to a traditional mortgage structure.

What Are the Benefits of Using One to Buy?

This type of purchase can open up property options that may otherwise feel out of reach.

With no need to repay the capital during your lifetime (unless you choose to), the focus can shift to choosing the right home for your future.

It can also reduce financial pressure in retirement, particularly for those relying on pensions or fixed incomes. Many products offer fixed interest rates for life, giving you certainty over the long term.

Porting is usually available if you choose to move again, although the new property will still need to meet lender criteria.

What Should Be Considered First?

Buying with a lifetime mortgage is a big decision and won’t be suitable for everyone.

There are other mortgage products designed for over 50s in Grimsby that may provide better outcomes depending on your situation.

Before anything is recommended, we’ll look at your income, future plans, property goals, and whether you’re buying alone or with someone else.

Alternatives such as interest-only mortgages, retirement interest-only deals or standard remortgage advice in Grimsby will always be reviewed first.

Only once those options have been considered will we look at equity release in Grimsby as a route to purchase.

Date Last Edited: June 6, 2025