Lifetime Mortgages

Helping unlock the value in your home.

Unlocking The Value of Your Home

Lifetime Mortgages provide homeowners access to their property’s equity without needing to sell or move out.

These mortgages last for life and offer flexibility in how you receive funds, either as a lump sum or in smaller installments. Interest accumulates over time, and the debt is typically repaid from the sale of the property after you pass away or move into long-term care, with any remaining proceeds going to your beneficiaries.

Lifetime Mortgage Couple


What is a Lifetime Mortgage?

Lifetime mortgages are the most popular type of equity release plan.

They work by giving homeowners access to some of the value, or ‘equity’, tied up in their property.

Unlike a conventional mortgage, which runs for a fixed term, a lifetime mortgage is designed to run for the rest of your life. During this period, the property remains 100 per cent in your name, and you are free to live there until you die or move into long-term care.

This could be a great alternative if you need some extra money, but don’t want to downsize to a cheaper property.

How does a lifetime mortgage work?

As the name suggests, an equity release lifetime mortgage works by being in place for the remainder of a homeowner’s life. For joint applicants, should one partner die or move into long term care, the plan would then continue in the sole survivor’s name.

Traditionally, a lump sum of tax-free cash is withdrawn and no repayments are made on lifetime mortgage.

Interest typically compounds or ‘rolls up’ and, thus, increases over time. Any proceeds left after repaying the lender are then passed onto your estate and distributed to your beneficiaries.

Having said that, many plans now offer the option of making monthly interest payments, or voluntary repayments to control or reduce the interest accruing.

Payments from an equity release lifetime mortgage are flexible, too. You can decide whether to take the cash as a single lump sum or in several smaller chunks known as ‘drawdown.’ In both instances, the money released is tax-free and you are only ever charged interest on the amount you withdraw.

How much can I borrow with a lifetime mortgage?

Lifetime mortgage providers will have their own rules on how much their lifetime equity release mortgage plan will release.

The maximum equity release lifetime mortgage facility is based upon the following criteria:

  • Age of the youngest homeowner (minimum age is 55)
  • Valuation of the property (minimum value is £70,000)
  • Health and lifestyle of the homeowner(s). If you have a qualifying medical condition (or conditions) you can potentially borrow more or get a lower interest rate.

Book your consultation to get clarity on your financial future.

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