Lifetime mortgages

Unlock some tax-free funds from your home and retain ownership without the stress of moving. We'll explain the benefits, drawbacks and costs of a lifetime mortgage.

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What is a lifetime mortgage?

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 (including joint applicants).

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. 

How does a lifetime mortgage work?

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.

Drawdowns are subject to the prevailing, fixed interest rate at the time, which may be higher than the original interest rate. A drawdown facility is not guaranteed as the lender has the right to withdraw it.

There are no required repayments to make on a lifetime mortgage as the loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care. However, all our lifetime mortgages come with the option to make voluntary ad-hoc repayments without incurring early repayment charges (subject to criteria) to help reduce your total cost of borrowing.

Talking to one of our specialist equity release advisers will help you discover which option could be 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 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.

Lifetime mortgage benefits

Your specialist equity release adviser will explain:

  • You can unlock cash from your home, tax-free, to help meet your needs in later life
  • You’ll always retain full ownership of your home and can stay in it for as long as you wish
  • You can choose to make reduced or no monthly repayments to suit your circumstances
  • You’ll never owe more than your home’s worth
  • You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges


Your equity release adviser will also outline the following important things to think about:

  • A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly
  • Equity release will reduce your financial options in the future
  • Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
  • Equity release may leave you with limited or no property equity remaining
  • A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply

Interest rates for lifetime mortgages

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 if repayments are not made, 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.

Things to consider with a lifetime mortgage

Equity Release will reduce the value of your estate and may affect your entitlement to means-tested benefits.

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 could be suitable 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. 

Lifetime mortgage advice that’s right for you

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.

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.

As a part of our advice process, we’ll consider whether retirement interest-only (RIOs) and other mortgages may be suitable and can arrange advice on these if appropriate. Advice fee will vary.

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.


Are you eligible for a lifetime mortgage?

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.

Specialist advice from The Equity Release Experts

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.