Life loan: the “reverse mortgage” for over 65

savings loan

In Italy, there are few savers who know about the life loan , a form of financing dedicated to the over-65s that allows obtaining high amounts for any need, offering a home as a guarantee. Let’s find out how this type of mortgage loan works and how you can get it.

How the annuity loan works

annuity loan

The life loan is granted against a mortgage on the house: in other words, a part of the value of the property is transformed into liquidity. For this reason, it must be stipulated before a notary who guarantees the legitimacy of the contract. The bank delivers the requested amount in a single payment to the customer, who maintains ownership of the house and will not have to repay any installment. The repayment of the loan takes place only after the disappearance of the borrower.

The heirs will have 10 months time to decide the method of repayment, which will have to be done in a single solution: they will therefore be able to sell the house to repay the debt and keep the difference for themselves, or repay the debt with their own means, extinguishing the mortgage on the house.

This loan is reserved for those over 65, with no maximum age limit. The amount payable increases with the age of the applicant.


The life loan, when compared with other products dedicated to the over 65s, has some advantages:

– allows to obtain high amounts (much greater than, for example, a fifth assignment);

– can be reimbursed at any time (in this case, however, an early repayment penalty is provided);

– does not provide for any installment for the life of the borrower;

– the house remains the property of the borrower, unlike what happens with the sale of bare ownership;

– does not provide for age limits.



Of course, there are also several negative aspects related to this financing, which should be taken into consideration before the stipulation:

– the house of residence is mortgaged: at the time of repayment, in the event that the heirs are unable to meet the debt, they will necessarily have to sell the house;

– interest accumulates over time and is capitalized annually: this loan in fact provides for compound interest, which means that the interest earned on the loan in turn produces other interests;

– at the death of the borrower, the loan must be repaid in a single payment.

The history of the life loan


Lifetime loan is a very common form of credit abroad, especially in England and the United States, where it developed over twenty years ago. In Italy the life loan was introduced with the law n. 248 of 2005 , but remains a product little known to the public and offered only by a few financial institutions. Currently 65Plus, a company specializing in senior citizens, is recognized on the market as a reference specialist in the Italian annuity loan market: 65 Plus offers does not directly provide Josiah Bounderby annuities, but offers its services to banks and financial institutions that want to offer this loan to their clientele.

Mortgage loan: 2018 mortgage loan

Home Loan

Have you ever heard of it? And do you know exactly why, perhaps, it could be the ideal solution to your credit needs?

In this guide I provide you with all the most important information on the mortgage loan, for any questions or doubts you have to ask in a comment and I will answer you as soon as possible!

What is the Mortgage Lifetime Loan?

Mortgage Loan

The lifetime mortgage loan , or reverse mortgage , is a form of loan that is intended for property owners only, provided they are already 60 years old.

It is therefore a loan that is dedicated to a restricted class of users which, however, is very often “neglected” by the offers of the banks, which sometimes are not used to finance for large amounts of people’s money “a little go on with age ”.

Instead, through this credit tool, the applicant who has the right characteristics will be able to obtain a very substantial amount of money (even several hundred thousand euros!) Without having to pay installments for his entire life.

Personal loans: get up to € 60,000

Personal loans

In short, as you have already seen, this is a very special loan, which the Italian market is trying to acquire from international experiences (it is widespread especially in the Anglo-Saxon area).

Of course, the bank that provides the lifetime mortgage loan will certainly not be exposed to the risks of not being able to obtain the due satisfaction of its: the main guarantee present on the loan in question, as you will have already had the opportunity to guess, is represented by the presence of a first degree mortgage on the home of the holder of the loan or, in any case, on another real estate unit of full ownership of the subject concerned by the loan.

Upon the death of the underwriter of the loan , the heirs can therefore choose whether to repay the accumulated debt and enter the property of the mortgaged property, or leave the house to the bank, so that it can proceed with the sale.

Well, if at this point in our analysis the life-long mortgage loan mechanism is not entirely clear to you, no fear. Let’s try to schematize its operation in these few points of attention:

  1. Do you need a very high amount of money ? You could check if you are among the potential beneficiaries of the lifetime mortgage loan (age over 60, availability of at least one non-mortgaged residential property). If so, you can calculate the amount obtainable, taking into account that its share on the property value fluctuates between a minimum of 10% for those 60 and a maximum of 50% for those with 90 (among these extremes, find the intermediate percentages).
  2. Where to apply for a lifetime mortgage loan ? If you have passed the first point with positivity, you can proceed to the second step. That is, where can I apply for a lifetime mortgage loan? Fortunately for you, the list of banks that make it possible to obtain life-long mortgage financing is growing. We’ll talk about it soon, with a dedicated paragraph!
  3. How to apply ? The third step is to submit the request to the bank you identified. In addition to signing the application , it will be necessary to present a copy of the identity documentation (valid identity card), the tax code, the family status, the deed of origin or the preliminary notary report.
  4. When does the appraisal take place ? If you have read the above lines well, you should know that one of the key moments to be able to find out how much money to get through the life annuity loan is related to the expertise that the bank technicians will carry out: based on their estimate, and on your age, in fact the amount of money obtainable will be calculated. The appraisal will be carried out by the credit institution as soon as the feasibility opinion will give a positive outcome (ie, as soon as the bank has verified the correct possession of all the requirements).
  5. How is the loan signed ? At this point, you are very close to getting the much sought-after amount of money! You will only have to wait for the bank and notary (the contract has the form of a public deed) to give the availability for the appointment for the signatures, and the game is done. We advise you anyway to read the copy of the contract at least a few days before the stipulation, and to read carefully all the clauses).
  6. When is the debt extinguished ? The extinction of the debt can take place in two ways, on the death of the subscriber (unless the latter has wished to proceed with voluntary, total or partial repayments): a) the heirs settle the accumulated debt (principal and interest, eventually turning on a mortgage) and fall under the ownership of the property; b) the heirs leave the bank to sell the property to cover the accrued debt (any excess amounts will be returned to the heirs).

Who is it convenient?

With these characteristics, the mortgage life loan is addressed exclusively to a class of banking user made up of who:

  • is at least 60 years old
  • is the owner of a residential property
  • it has no liens (mortgages) on the property on which it wishes to constitute a mortgage.

The annuity mortgage loan is therefore a loan dedicated to a range of users that is not particularly wide, but which could actually be very interested in this type of credit intervention by the bank.

The mortgage life loan is in fact the best solution if you want to get a large sum of money without having to worry about repaying the installments during your life (the main form of debt for those who have reached this age threshold is in fact the sale of the fifth of the pension , which however – for characteristics, amounts obtainable and restitution methods – is far from being comparable to the life-time mortgage loan).

Furthermore, the funding could be ideal for those who have good real estate assets and wish to exploit it with a specific form of credit intervention, perhaps allocating the sum obtained to the needs of their grandchildren or children, or for their own personal expenses.

Those who receive the money through lifetime mortgage financing can in fact dispose of it as they see fit (the annuity loan with a mortgage is in fact an unfinished loan), freeing – at the same time – from the worry of having to repay principal and interest (which, as we have seen, are capitalized in a single debt payable on the debtor’s death).

How much can mortgage financing be obtained?

mortgage financing

Through the mortgage life loan you will be able to obtain a sum of money that will be proportional to the value of the property granted as mortgage, and at your age.

In general, the higher the value of the property, the higher your age, and the greater the amount you will be able to obtain through the mortgage loan.

Keep in mind, however, that the percentage of money you can get, in relation to the value of the property, is not comparable with the one you could get with an ordinary mortgage (80%): the limit for obtaining money with the mortgage loan is in fact generally equal to 50% of the value of the property, but it is very likely that it will be able to obtain much less (20-30%).