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What is a Lifetime Mortgage?
A lifetime mortgage is a flexible way to release tax-free cash from your home while staying in it. Available to homeowners aged 55 and over, it allows you to unlock some of your property’s value without having to sell or move, while still maintaining 100% ownership of your home.
You can take the money as a lump sum or withdraw it in stages, depending on your needs. The loan is repaid when your home is sold—typically when you pass away or move into long-term care. Keep in mind that if you choose staged withdrawals, the interest rate may vary based on your provider's rates at the time.
How Does a Lifetime Mortgage work?
- No Monthly Repayments (Optional): Interest is added to the loan, and the total amount is settled when the property is sold.
- Interest-Only Option: You can choose to pay off some or all of the interest, reducing the total owed over time.
- Drawdown Option: Withdraw funds as needed, paying interest only on what you use.
It’s a simple way to free up funds for retirement, whether you want to pay off an existing mortgage, make home improvements, or support loved ones.
Is a Lifetime Mortgage right for me?
A Lifetime Mortgage can benefit a wide range of homeowners, whether you’re planning to enhance your retirement, make improvements to your home, or provide financial support to loved ones. It’s a flexible solution to help you achieve what matters most.
A lifetime mortgage can help you:
- Access tax-free cash while keeping ownership of your home.
- Fund renovations or adaptations for later life.
- Support children or grandchildren with financial gifts.
- Supplement your retirement income.
- Clear outstanding debts or an existing mortgage.
With flexible repayment options and no obligation to make monthly payments, you stay in control of your finances.
Start your Lifetime Mortgage journey in 3 simple steps
Find out how much you could release
Use our free online calculator to quickly estimate how much tax-free cash might be available from your home.
Check if you’re eligible and explore your options
Connect with a trusted adviser to confirm if Equity Release is the right choice for you. If there’s a better alternative, they’ll guide you—completely free of pressure or obligation.
Unlock your tax-free cash
With expert support every step of the way, you can unlock funds to enhance your finances, make improvements to your home, or provide for your loved ones.
What are the advantages of a Lifetime Mortgage?
A Lifetime Mortgage is designed to meet a variety of needs, offering flexibility and peace of mind:
- Tax-Free Cash: Use it to enjoy retirement, make home improvements, or manage existing debts.
- No Monthly Repayments: Most plans require repayment only when your home is sold, or you enter long-term care or pass away, though many also offer the option to make voluntary repayments, which can reduce the overall loan.
- Retain Ownership of Your Home: With a Lifetime Mortgage, you keep full ownership of your home.
- Flexible Options: Choose from lump sums or drawdown plans to suit your circumstances. Some plans may offer voluntary repayments to help manage interest, but monthly payments are not required.
- No Negative Equity Guarantee: Rest assured, you’ll never owe more than the value of your home when it is sold.
- Protected Inheritance: Many plans allow you to protect a portion of your home’s value to pass on to your loved ones.
A Lifetime Mortgage is a practical solution to enhance your quality of life, offering financial flexibility while letting you stay in the home you love.
What are some key considerations before releasing equity from my home?
While Equity Release offers many benefits, it’s important to understand the implications:
- Advice Is Essential: Professional advice is required by law. Initial consultations are free and obligation-free. If you decide to go ahead, fees and charges will apply.
- Impact on Inheritance: Releasing Equity may reduce the value of your estate.
- Impact on Benefits: The money you release from your home could affect any means tested benefits you’re entitled to now or in the future.
- Repayment Requirements: Any existing mortgage must be paid off using the funds released. Equity Release can also be used to consolidate other debts, but this may increase the overall cost over time.
We’ll connect you with an adviser from an FCA-regulated company who can provide tailored guidance so you can make an informed decision. If Equity Release isn’t right for you, they’ll help you explore alternatives.
Peace of Mind - The Equity Release Council Guarantee
Equity Release is a big decision, and the Equity Release Council (ERC) sets industry standards that help protect customers and provide peace of mind. Products and advice from ERC member firms are regulated by the Financial Conduct Authority (FCA), ensuring you receive expert guidance and robust safeguards.
When you choose a provider who follows the Equity Release Council’s standards, you’re guaranteed:
- A No Negative Equity Guarantee: You’ll never owe more than your home’s value.
- The Right to Stay in Your Home: You can remain in your home for life.
- The Right to Move: Transfer your plan to a new property if you wish.
- The Option to Make Partial Repayments: You can make voluntary, penalty-free repayments, subject to your provider’s terms.
- Fixed or Capped Interest Rates for Life: Protection against unpredictable rate increases.
Additionally, the Financial Conduct Authority requires all customers to receive expert financial advice before taking out a lifetime mortgage or home reversion plan—ensuring you make an informed decision.
Frequently Asked Questions