A lifetime mortgage is a type of equity release which allows you to top up your finances in later life. It is a loan secured against your home where you can access some of the tax-free funds tied up in your property whilst still retaining full home ownership. You need to be 55 or over to qualify.
The funds you release from your home are tax-free and can be used in a variety of ways, from home improvements to clearing existing debt. You should always think carefully before securing a loan against your home to repay existing debt.
By speaking to one of our equity release advisers during a free, no-obligation appointment, we can understand if equity release is the right option.
Like all financial considerations, a lifetime mortgage is a big decision. So, it’s always a good idea to weigh up your options carefully before deciding if it is right for you.
By taking out a lifetime mortgage, homeowners can unlock cash against the equity in their home, which must be their main residence. You usually have two options with a lifetime mortgage too. You can either take the amount you release in a lump sum where interest is charged on the full release amount from day one, or you can choose a drawdown option, where you can take a smaller initial lump sum, then able to access further amounts as and when required from your drawdown cash facility.
A drawdown can have the potential to lower the interest that accrues if you don’t need to unlock the full amount right away. But that’s something our expert equity release advisers are here to explain to you.
In most cases, you won’t have to make any monthly repayments on your lifetime mortgage until you – or the last remaining borrower – either passes away or moves into long-term residential care. There is, however, an option to choose a plan with monthly repayments if you'd prefer this.
Talking to one of our specialist equity release advisers will help you discover which option is the right one for you. From clearing existing debts to providing for your family, our fully-qualified and expert equity release advisers can customise your plan to suit your exact needs. It all comes down to what matters most to you – and how you’d like to make the most of the equity tied up in your home.
Your specialist equity release adviser will explain:
Your equity release adviser will also outline the following important things to think about:
With a conventional repayment (capital plus interest) mortgage, interest is charged on an amount you owe. This amount then reduces over time until you've paid it back in full. But the interest on a lifetime mortgage is charged on an amount that increases. This is because, with no monthly repayments, the interest continues to add to what you owe.
At The Equity Release Experts, we have annual interest rates starting from 6.02% - fixed for life*. The overall cost for comparison is 6.48% APR.
*Stated rates correct as of 4 December 2023. The actual rate that you receive will depend on your circumstances.
Here at The Equity Release Experts, we specialise in providing you with comprehensive, impartial and customised advice. It’s all based on you and where you want your finances to be in later life – no matter the reason.
To help you release some of the funds in your home with a lifetime mortgage, we compare plans from across the whole equity release market. We’re not tied to any lifetime mortgage providers. So, you can be sure any advice we give or recommendations we make are completely based on your needs - if equity release isn't right for you, we'll tell you.
For added peace of mind, we’re also members of the Equity Release Council – the industry body for the UK equity release market. As a member, we adhere in full to the Statement of Principles that provides extra safeguards to help protect you and make equity release a safer option.
Why not discover if a lifetime mortgage could work for you? With us, it all starts with a free initial consultation. Call 0800 188 4812 or request a callback from our equity release specialists today.
It’s important to understand that a lifetime mortgage won’t be the right option for everyone. You also can’t apply unless you seek advice from a qualified equity release expert – that’s a regulatory requirement.
But, if you’re a UK homeowner and aged 55 and over with a property worth at least £70,000, you could be able to explore the possibility of releasing tax-free funds from the equity in your property.
You can use our equity release calculator to find out just how much could potentially be unlocked from your home by comparing plans from across the whole equity release market with us.
Get in touch by phoning 0800 188 4812 or by requesting a callback.
Equity Release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
More importantly, a lifetime mortgage is intended to last the rest of your life, so if you decide to pay it off early, you could have to pay an early repayment charge. And the effect of compound interest can mean that the amount to be repaid could grow quickly.
Each of our independent equity release advisers take the time to get to know you – and your financial goals for later life. It means they are expertly placed to let you know if a lifetime mortgage is right for you. Alternatively, they’ll also tell you if it's not and if another option is best for your needs and circumstances.
Unless you decide to go ahead, our service is completely free of charge as our fixed advice fee of £1,799 is only payable on completion of a plan.
Are you ready to take the first step towards finding out if you can unlock tax-free funds from your home? If so, call The Equity Release Experts for your initial consultation on 0800 188 4812. You can also ask us to call you back if it’s more convenient.
Remember – that initial discussion is free and there’s no obligation. We're available from 9am to 5:30pm, Monday to Friday. If you’d prefer, you can first download our free equity release guide.