Lifetime Mortgages

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What is a Lifetime Mortgage?

A lifetime mortgage is not your typical mortgage. Although it is a popular way of releasing equity, without making any repayments before the end of your plan. Instead, think of it as a long-term loan which is secured against your property.

How does a Lifetime Mortgage work?

Each year, interest is added onto your loan and any existing interest, meaning that it can grow quite quickly. However, the loan and the interest are then repaid in full, usually from the sale of your property, if you go into long-term care, or become deceased.

The amount you can borrow for a lifetime mortgage depends on your age and the overall value of your property. Typically, a lifetime mortgage comes with a fixed rate of interest, however, variable rates are available from some providers.

It’s important to remember that a lifetime mortgage may impact on the amount of inheritance you can leave, it could also affect the amount of tax you pay and any benefits you currently, or go on to receive.
What is the criteria for taking out a Lifetime Mortgage?

Understandably, like any mortgage, when it comes to lending money, there are strict criterion to abide by. In order to be eligible for a lifetime mortgage, it will largely depend on the lender, however there are some generalisations.

For instance, the minimum age is often 55-60 and the percentage of your property you can borrow is dependent on how old you are. On average, at 65 years old, you may be able to borrow 25%-30%, whereas if you’re older, you can borrow as much as 50%.

It’s also worth noting that some lenders have minimum loan amounts. This means your home may have to meet a minimum value specification, before you can apply.

What are the different types of Lifetime Mortgages?

There are three main types of lifetime mortgages to choose from. Each lifetime mortgage is unique and dependent on individual circumstance.

What is the criteria for taking out a Lifetime Mortgage?

Understandably, like any mortgage, when it comes to lending money, there are strict criterion to abide by. In order to be eligible for a lifetime mortgage, it will largely depend on the lender, however there are some generalisations.

For instance, the minimum age is often 55-60, and the percentage of your property you can borrow is dependent on how old you are. On average, at 65 years old, you may be able to borrow 25%-30%, whereas if you’re older, you can borrow as much as 50%.

It’s also worth noting that some lenders have minimum loan amounts. This means your home may have to meet a minimum value specification, before you can apply.

Lifetime mortgages do not suit everybody. Individual circumstances play a huge part on whether a lifetime mortgages are the best option for you.


What are some of the benefits & drawbacks of a Lifetime Mortgage?

  • You will still own your property
  • Spend the released equity as you wish.
  • Protected by our ‘no negative equity guarantee’ - never pay back more than you receive from the eventual sale of your home.
  • Safeguard a percentage of your home's value with our inheritance guarantee.
  • Partial repayment sin the first year of your loan.
  • Reduces overall amount of inheritance you can leave
  • It’s a lifetime commitment - can be transferred but new property must meet criteria
  • Increases overall interest rates
  • Existing mortgages must be paid off before a lifetime mortgage can be obtained

Frequently Asked Questions

What is Equity Release?

What are Lifetime Mortgages?

How much interest will you pay on a Lifetime Mortgage?

How do you know if you’re eligible for a Lifetime Mortgage?

Does your property qualify for a Lifetime Mortgage?

How much equity can you release on a Lifetime Mortgage?

What are Home Reversion Plan mortgages?

What is a 'No Negative Equity Guarantee'?

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