What is a lifetime mortgage?

A lifetime mortgage is a loan secured against your home that’s typically repaid when you pass away or go into long-term care. With a lifetime mortgage you retain full ownership of your property and there are usually no monthly repayments to make, see the different payment methods here.

  • Available for homeowners aged 55 and over

  • A lifetime mortgage lets you release tax-free cash tied up in your home

  • You retain full ownership of your property

  • It's typically repaid when you pass away or move into long-term care

  • Usually, there are no monthly repayments

  • You can’t take out a lifetime mortgage without taking advice first.

You must take advice from a qualified equity release adviser to apply for a lifetime mortgage. It's a regulatory requirement.

The amount of cash you can release depends on things such as your age, health and the value of your home. With a lifetime mortgage, you can take either a lump sum, where interest accrues on the full amount from day one, or following an initial release in a number of smaller amounts, known as a drawdown. This could save you thousands in interest if you don’t need all the money straight away.

The tax-free cash you release through a lifetime mortgage can be used in a variety of ways – see how most consumers use theirs.

As with any mortgage, what remains from the sale of your property after your plan has come to an end can be passed on as an inheritance. And because all of our plans meet the Equity Release Council standards, they all come with the no negative equity guarantee. That means you’ll never owe more than your home’s worth, so you can’t pass on any debt accrued through equity release to your loved ones.