A lifetime mortgage is a type of equity release, a loan secured against your home that allows you to release tax-free cash without needing to move out.
Lifetime mortgages are available to homeowners aged 55 or over. You can take the money as a lump sum or as series of lump sums. No repayments are required until you die or move out of your home into long-term care.
Whether you're looking to pay off an existing mortgage, make some home improvements, or gift money to a family member, a lifetime mortgage could help.
Download our later life mortgage guide to find out more.
Tax-free cashWhen you release equity with one of our Lifetime Mortgages, you can take a lump sum in one go or as a series of smaller lump sums when it suits you.
Spend it how you wantYou can use the money you release for home improvements, helping children buy their first property or increase your income in retirement. It's up to you.
Nothing to repayUnless you choose otherwise, there's nothing to repay until you die or move permanently into long-term care.
Flexible repaymentsIf you prefer, there's an option to repay some or all of the interest. You can also choose to repay part of the original loan.
Stay in your homeWith equity release, you don't need to downsize and can stay in your home until you die or move permanently into long-term care.
You can still move houseSo long as the new property is acceptable to us.
Inheritance protectionPart of the value of your home can be passed on if you choose our Inheritance Protection option.
No negative equity guaranteeWhatever happens you'll never repay more than the value of your home when it is sold - even if that's less than the amount owing. Subject to terms and conditions.
The interest can build up quicklyIf you choose not to repay any interest until you die or move permanently into long-term care, the interest can rapidly build up over time. There may be cheaper ways to borrow money.
Reduced inheritanceEven with our Inheritance Protection option, releasing equity with a lifetime mortgage will reduce how much you can leave as an inheritance.
Inheritance taxIf you gift the money, the recipient may need to pay inheritance tax in the future.
Early Repayment ChargeIf you choose to repay all or a significant part of the loan early, there may be an Early Repayment Charge.
Means-tested state benefitsIf you're receiving certain means-tested state benefits, taking a lifetime mortgage could impact your entitlement to these benefits.
Higher interest ratesUsually the interest rates for a lifetime mortgage are higher than the rates charged for a traditional mortgage.
Repaying an existing mortgageYou may have to pay an Early Repayment Charge to your existing lender if you remortgage.
Equity release calculator
This calculator helps you see how much equity you could release with a lifetime mortgage, a loan secured against your home. You can also register your details and request a call back if you wish.
How to use this calculator
- If you want a joint lifetime mortgage use the age of the youngest applicant
- Once you have your result you can keep using the calculator to see the different ways you could release the money
|Flexible Lifetime Mortgage||Optional Payment Lifetime Mortgage|
|Minimum property value considered||£70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties.||£70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties.|
|How is the loan paid out?||Lump sum or series of lump sums||Lump sum or series of lump sums|
|Minimum initial lump sum||£10,000||£10,000|
|Minimum additional loan amounts for each release||£1,000||£1,000|
|Maximum loan amount||Determined by your age and property value.|
|Is the loan secured against my home?||Yes.|
|When do I have to repay the full amount of the loan?||The loan is usually repaid when you die or move out of the home and go into long-term care.|
|How is interest charged on the loan?||Interest is charged on the loan amount plus any interest already added, so the amount owed will increase quickly over time unless you pay off some or all of the interest. You may have cheaper ways to borrow money.|
|Do I have to pay interest every month?||No - but you can choose to make partial repayments if you want to manage the amount owed on the loan and interest.||No - but you can pay some or all of the monthly interest to reduce the overall cost of the loan, and you can stop making payments at any time. If you choose to stop payments, you can't restart them.|
|Can I end up owing more than the home is worth?||No. With our No Negative Equity Guarantee, as long as you follow the terms and conditions of the loan, you'll never owe more than the home is worth.|
|Is the interest rate fixed?||Yes. The interest rate is fixed for the life of the loan.|