What is an Income Lifetime Mortgage?

Tax-free cash, as a monthly income

Our Income Lifetime Mortgage, a type of equity release, is a loan secured on your home which allows you to borrow against the value of your home while continuing to live there.

It gives you a regular monthly income over a fixed term. You can choose to take the income over 10, 15, 20 or 25 years, with a minimum initial cash sum. 

  • Tax-free cash

    Since the money you release, with a lifetime mortgage is borrowed from your equity, it remains tax-free.

  • Receive a fixed income over a set period of time

    You can fix the monthly amount, interest rate and income term, with the option to take the income over 10, 15, 20 or 25 years.

  • Guaranteed no negative equity

    We guarantee that your beneficiaries will never have more to pay than the sale value of your home. This is as long as the property is sold for the best price reasonably obtainable and you’ve met the product Terms and Conditions.

  • Optional partial repayments

    You can choose to make partial repayments if you want to manage the amount owed on the loan and interest.

    Full details on the features are in the terms and conditions an adviser will be able to share with you.

Find out more about how equity release works

  • Am I eligible?

    You must be 55 or over and living in (or buying) your own home, with either a small or no mortgage. Your home will need to be worth a minimum of £100,000.

  • I’d like to afford extras in retirement

    Income Lifetime Mortgage lets you release a minimum of £200 a month to give you that extra bit of cash, once you have taken a minimum of £2,500 as an initial cash sum.

  • What if I no longer want the income?

    You can stop the payments at any time, once you stop receiving income though, you can’t start receiving it again.

Find out more in our Lifetime Mortgage guide

  • Arrangement fee

    An arrangement fee applies for an Income Lifetime Mortgage.

  • At the end of the term, the income stops

    Once the fixed income term ends the monthly income will stop but interest will continue to roll up until the lifetime mortgage is repaid

  • Have you thought about inflation?  

    Inflation may reduce the value of the monthly income you receive over time.

  • What will you do when the income stops?

    Will you have something else to live on when the fixed term income comes to an end?

  • Impact on inheritance

    A lifetime mortgage will reduce an inheritance. There is an option to take inheritance protection to secure a proportion of the net sale proceeds of your home.

  • Early Repayment Charges

    As a lifetime mortgage is designed to last a lifetime. If you decide to repay your lifetime mortgage in full, you may have to pay an Early Repayment charge which could be substantial, so think carefully before you decide.

  • Moving home

    You can move home, and the loan will be transferred as long as the new property meets our requirements.

  • Means tested benefits

    Taking out a lifetime mortgage may affect your entitlement to means-tested benefits or pension credit.

  • Compound interest

    Interest is charged on the loan, plus any interest already added. So, the amount you owe will increase quickly over time. There may be cheaper ways to borrow money. The loan is usually repaid when the last borrower dies or moves out of the home into long-term care. 

The pros and cons of equity release

Equity release calculator

This calculator helps you see how much equity you could release with a lifetime mortgage, a loan secured against your home. We'll ask you to register your details to show you the calculation, then give you a call.

My date of birth is
/ /
My postcode is
My home is worth around

I'm looking to release

This is a guide to the lifetime mortgage products we offer and not advice or a personal recommendation. You can only buy a lifetime mortgage through a financial adviser.

We'll use your address to look up your property ahead of our call to assist you with your enquiry.

Help to stay safe from scams

See how you can protect yourself from fraud.

Women on the phone

Get in touch to see if we can help you release equity

To have a chat about your options for releasing equity from your house, call us on the number below.

For any other enquiries please get in touch via our contact us page.

0808 301 70440808 301 7044

Monday to Sunday 8:30am - 8:00pm
We may record and monitor calls.

Need help?

Making decisions about how to finance your retirement is important so it’s worth shopping around and using available guidance and advice, before you buy:

Retirement guidance

Equity Release Council

Legal & General Home Finance Ltd is a member of the Equity Release Council, a trade body setting standards for providers. Take a look at their consumer brochure for more details.

Contact us about equity release

Call us on:

0808 301 70440808 301 7044

Monday to Friday 8:30am to 8:00pm. 
Saturday, 9:00am to 1:00pm.
We may record and monitor calls

For any other enquiries please get in touch via our contact us page


Get independent advice

You can't take out an equity release product unless you have taken financial advice. Find out how to access independent legal and financial advice.