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What are Lifetime Mortgages?

Lifetime mortgages are a type of equity release scheme that allows homeowners to unlock the value of their property while retaining ownership. This type of mortgage is designed for older homeowners, typically aged 55 and over, and provides either a lump sum, regular income, or a combination of both. The loan and the accumulated interest are repaid when the homeowner passes away or moves into long-term care. Lifetime mortgages in the UK are regulated by the Financial Conduct Authority (FCA), ensuring consumer protection and oversight.

Key Features and Benefits

  • Access to Funds: Receive a lump sum, regular income, or both from your home’s equity.
  • Retain Ownership: Continue to own and live in your home while accessing its value.
  • Flexible Options: Choose from different types of lifetime mortgages to suit your needs, including lump sum, drawdown, and interest-only options.
  • No Negative Equity Guarantee: Thanks to the standards set by the Equity Release Council (ERC), you will never owe more than the value of your home.
  • Fixed or Variable Interest Rates: Options available depending on your financial planning needs.

Factors to Consider

Eligibility

Lifetime mortgages are typically available to homeowners aged 55 and over with a qualifying property. The amount you can release depends on factors such as your age and the value of your home. Ensure your property meets the lender's criteria, which often include the type and location of the property.

Costs

Understanding the costs associated with lifetime mortgages is crucial. These can include interest rates, arrangement fees, valuation fees, and legal costs. The interest on the amount you release is added to the loan and can grow over time, especially with compound interest. Compare different plans to ensure you understand all the costs involved.

Impact on Inheritance

Releasing equity from your home will reduce the value of your estate, which means you might leave less to your loved ones. Some plans allow you to protect a portion of your property’s value to pass on as an inheritance. Discuss the impact on your estate with your family to ensure everyone understands the implications.

Impact on State Benefits

Taking out a lifetime mortgage can affect your eligibility for means-tested state benefits. The additional income or savings may reduce the benefits you receive. It’s crucial to discuss this with an adviser to fully understand the implications.

Advice

Seeking professional advice is essential when considering a lifetime mortgage. An adviser can provide personalised recommendations based on your situation and goals. They can help you understand the pros and cons and find the best plan for you. Speaking to an adviser is crucial to ensure you are making an informed decision.

Next Steps

Choosing the right lifetime mortgage can be complex, but getting expert advice can make it easier. By understanding your specific needs and circumstances, an adviser can help you find the best plan that provides access to your home’s equity.

Interested in understanding how lifetime mortgages work and finding the best option for you? Speak to a knowledgeable adviser who can guide you through the process and help you make the right choice.

Get Expert Lifetime Mortgage Advice Now

Frequently Asked Questions

Lifetime mortgages allow you to unlock the value of your home and receive a lump sum, regular income, or a combination of both. The loan and accumulated interest are repaid when you pass away or move into long-term care. You continue to live in your home and retain ownership during this period.

Why Use Us?

Unbiased & Impartial - We search every equity release lender in the UK. We're an independent website with no affiliation to any equity release lender and therefore we don't promote any "special offers" from specific lenders.

Whole of Market - We search the whole of the equity release market including exclusive quotes and rates sometimes available to equity release brokers.

How It Works

  1. Complete our simple form
  2. Our partner, Unbiased, will connect you with one equity release adviser perfectly suited to meet your needs. Expect an email with their details.
  3. You'll receive a no-obligation equity release quote
  4. Your assigned broker will then contact you to schedule your first meeting.

What People Say

"He has kept me posted every step of the way and explained everything fully. There were no hidden costs. I would definitely recommend and will not hesitate to use them in the future"


"Very satisfied with the service received ! The advisor was excellent handling our equity release and was very helpful with all questions we had and changing our term twice! Thanks again!"

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*Example rate shown is from Hodge with a rate of 6.05% (12/09/2023). The rates shown are for illustrative purposes only, they should not be taken as any form of advice or recommendation. Actual mortgage quotes are based on individual circumstances.

  1. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.