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A Lifetime Mortgage is a type of equity release product that allows homeowners, typically aged 55 and over, to access the wealth tied up in their property without having to sell or move out. It provides a tax-free lump sum or a series of payments secured against the value of the home, with no required repayments until the homeowner passes away or moves into long-term care.
This financial solution is ideal for individuals looking to supplement their retirement income, fund home improvements, assist family members financially, or simply enhance their lifestyle in later years. The key advantage of a lifetime mortgage is that it offers financial freedom while allowing homeowners to continue living in their property.
One of the main benefits of a lifetime mortgage is the flexibility in how the funds are received and used. Borrowers can choose a lump sum, drawdown facility, or even an income-based plan. Interest can be rolled up over time or repaid partially or in full, depending on the lender’s terms. Importantly, most lifetime mortgages come with a no-negative-equity guarantee, ensuring that the debt will never exceed the property’s value.
There are two main types of lifetime mortgages: Lump Sum Lifetime Mortgages and Drawdown Lifetime Mortgages. A Lump Sum Lifetime Mortgage provides a one-time payment that can be used immediately for larger expenses, such as home renovations or paying off existing debts. A Drawdown Lifetime Mortgage offers a flexible facility from which funds can be withdrawn as needed, helping to manage interest accumulation more effectively over time.
Release
Equity
Unlock funds from your home without selling or moving out.
Flexible
Options
Choose a lump sum, drawdown, or voluntary repayments.
Inheritance
Protection
No negative equity—never owe more than your home’s value.
HOW A Lifetime Mortgage DIFFER FROM A RESIDENTIAL ONE
01
Commercial mortgages are for business properties, while residential ones are for personal homes.
02
They usually involve higher loan amounts due to larger business property values and needs.
03
Repayment terms for commercial mortgages are shorter and often come with higher interest rates.
04
Lenders assess business finances for commercial mortgages, and personal credit for residential ones.
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