Lifetime Mortgages


A lifetime mortgage is a form of equity release where a loan is secured against your property to provide you with a tax free cash lump sum or a regular income to spend as you wish.

With a roll up lifetime mortgage, interest is added to the lifetime mortgage throughout your lifetime. The mortgage plus interest is eventually paid back when the home is sold, you move into long term care, or when you and your partner die. You can typically release between 15% and 56% (Moneyfacts March 2012) of the value of your home with a lifetime mortgage, depending on your age. The minimum age is 55.

Advantages of a lifetime mortgage:

• A lifetime mortgage provides you with a cash lump sum. The lump sum can be utilized to purchase an annuity to provide income or there is an option of drawdown. 
• You retain full ownership of your home with a Lifetime Mortgage 
• Lifetime mortgages are available to people aged 55+ 
• No negative equity guarantees can apply to certain lifetime mortgages who are members of The Equity Release Council• Regulated by the Financial Services Authority

Disadvantages of a lifetime mortgage.

• The amount you leave as an inheritance will be reduced or nothing left at all
• The interest applied can grow quickly if it is compounded 
• If you repay the lifetime mortgage early it is very likely that you will have to pay an early repayment charge 
 Your tax position and other state benefits may be affected

We are independent equity release advisers who offer impartial and specialist advice on a range of equity release schemes including drawdown lifetime mortgages. We try to find the most suitable equity release solution for you, get specialist advice on equity release by speaking to our friendly and knowledgeable equity release adviser.

A typical fee for mortgage advice is £295

To understand the features and risks of a lifetime mortgage, ask for a personalised illustration.