What is a lifetime mortgage?

One of our award-winning lifetime mortgages could help you pay off your interest-only mortgage balance in full, including any Early Repayment Charges that may apply.

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 a series of lump sums. No repayments are required until you die or move out of your home and go 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.

  • A fixed interest rate for life
  • Choice to make monthly interest payments

Download our Later Life Mortgage guide to find out more.

Your guide to later life mortgages

Lifetime mortgage pros and cons

You can only get a lifetime mortgage through a qualified equity release adviser, but it's important to understand the benefits and risks.

  • Tax-free cash

    When 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 want

    You 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 repay

    Unless you choose otherwise, there's nothing to repay until you die or move permanently into long-term care.

  • Flexible repayments

    If 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 home

    With 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 house

    So long as the new property is acceptable to us.

  • Inheritance protection

    Part of the value of your home can be passed on if you choose our Inheritance Protection option.

  • No negative equity guarantee

    Whatever 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 quickly

    If 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 inheritance

    Even with our Inheritance Protection option, releasing equity with a lifetime mortgage will reduce how much you can leave as an inheritance.

  • Inheritance tax

    If you gift the money, the recipient may need to pay inheritance tax in the future.

  • Early Repayment Charge

    If you choose to repay all or a significant part of the loan early, there may be an Early Repayment Charge.

  • Means-tested state benefits

    If you're receiving certain means-tested state benefits, taking a lifetime mortgage could impact your entitlement to these benefits.

  • Higher interest rates

    Usually the interest rates for a lifetime mortgage are higher than the rates charged for a traditional mortgage.

  • Repaying an existing mortgage

    You may have to pay an Early Repayment Charge to your existing lender if you remortgage.

 

 

  Flexible Lifetime Mortgage Optional Payment Lifetime Mortgage
Age 55+ 55+
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 £2,000 £2,000
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.

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.

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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.