Helping you understand whether a Lifetime Mortgage could be right for you

What is a lifetime mortgage?

A lifetime mortgage is a loan secured against your home. Unlike a standard mortgage, you don’t make monthly repayments. Instead, interest is added to the loan over time, and the full amount — original loan plus accumulated interest — is repaid when the property is eventually sold. That usually happens when you die or move into long-term care.

You remain the legal owner of your home throughout. The lender has a charge against the property, but the home is still yours to live in.

It’s a significant financial decision with long-term consequences — for you, for your estate, and potentially for any family members who may have expected to inherit the property. We take time to make sure you understand the full picture before any recommendation is made.

Who can take out a lifetime mortgage?

Lifetime mortgages are typically available to homeowners aged 55 and over. There is no upper age limit for most products.

The amount you can release depends on three main factors:

• Your age — older applicants can generally release a higher percentage of their property’s value
• Your property value — lenders will require a professional valuation
• Your health — enhanced or impaired life products are available for those with certain health conditions, and can allow you to release significantly more

Most lenders require the property to be your main residence, in good condition, and of standard construction. Some have minimum property value requirements.

How much can you release?

As a rough guide, a 55-year-old may be able to release around 20–25% of their property’s value, while someone in their mid-70s may access 35–40% or more. These are general figures — the actual amount depends on the lender, the product, and your individual circumstances.

Enhanced lifetime mortgages — available where you have certain health conditions or lifestyle factors — can allow you to release considerably more than standard products. It’s always worth disclosing health information at the outset, as it can only work in your favour.

Types of lifetime mortgage

Lump sum

You receive a single tax-free cash sum when the mortgage completes. Interest rolls up on the full amount from day one. This suits people who have a specific one-off need — paying off an existing mortgage, home adaptations, helping family.

Drawdown

You release an initial amount and have access to a pre-agreed reserve facility that you can draw on as and when you need it. Interest only accumulates on what you’ve drawn down. For those who don’t need all the money at once, this is often the more cost-effective option — and it’s the most popular type of lifetime mortgage for that reason.

Interest-paying lifetime mortgages

Some products allow you to pay some or all of the monthly interest, which prevents the loan balance growing over time. This protects more of the estate and can be appropriate for those with a regular income in retirement who want to manage the impact on inheritance. Partial interest payment options are also available.

The no-negative-equity guarantee

All lifetime mortgages from lenders who are members of the Equity Release Council include a no-negative-equity guarantee. This means that regardless of how long the mortgage runs, or how interest accumulates, you will never owe more than your home is worth. Your family will not inherit a debt.

We only recommend products from Equity Release Council members — this guarantee is non-negotiable.

The effect on your estate

This is the area that needs the most careful thought. Interest on lifetime mortgages compounds — meaning interest is added to the loan, and then interest accrues on that interest. Over a long period, the loan balance can grow considerably.

This is why we spend time modelling different scenarios — showing you how the loan might look at different points in the future, and what that means for your estate. It’s also why involving family in this conversation, where appropriate, is something we actively encourage.

Impact on means-tested benefits

If you receive any means-tested benefits — Pension Credit, Council Tax Support, or others — a lifetime mortgage could affect your entitlement. Releasing cash increases your assets, which can take you above eligibility thresholds. This needs to be factored in before proceeding.

We will always ask about your benefits position as part of the advice process.

Can you move home?

In most cases, yes. Most lifetime mortgages are portable — you can transfer the loan to a new property when you move, subject to that property meeting the lender’s criteria. If you’re downsizing to a property of lower value, you may need to repay part of the loan.

It’s worth checking portability before you take a product, particularly if you think you might want to move in future.

The process

Lifetime mortgage advice is more involved than a standard mortgage application. The process typically includes:

• An initial conversation to understand your situation, needs, and what you’re hoping to achieve
• A full fact-find covering your financial position, health, property, and family circumstances
• Research across the market to identify suitable products
• A formal recommendation with a clear explanation of costs, risks, and alternatives
• Time to consider — there is no pressure to proceed and we actively encourage taking time
• Application, valuation, legal work, and completion

You will need independent legal advice as part of the process — this is a requirement for lifetime mortgages and is there to protect you.

Our fee

The broker fee for lifetime mortgage advice is £495, payable on application. There is no charge for initial conversations, fact-finding, or understanding your options before you decide whether to proceed.

We are also paid a commission by the lender when a mortgage completes. Both the broker fee and the commission will be clearly disclosed as part of the advice process.

Frequently asked questions