We have seen a marked increase in the volume of structured finance transactions involving lifetime mortgage products in recent years (both funding transactions and the sale and purchase of lifetime mortgage books through securitisation), and this looks set to continue with investor appetite for these types of investments growing. The characteristics of lifetime mortgages makes them particularly attractive for regulated insurers looking to invest in matching-adjustment eligible securities, and securitisations of lifetime mortgages commonly include tranches of notes with fixed payment schedules that are designed to be eligible to be held in matching adjustment portfolios. Differences between lifetime mortgages and other residential mortgages A lifetime mortgage is a mortgage granted to borrowers above a specified age secured against residential property. A lifetime mortgage differs from a standard residential mortgage in a number of ways, including:
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