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A lifetime mortgage is a type of equity release that lets you access money from your home while staying in full ownership.
It’s available to homeowners from age 55 and can be used for remortgaging, buying a new home or unlocking tax-free funds.
Unlike a traditional mortgage, there are no mandatory repayments. The loan is repaid when your home is sold, usually after death or moving into long-term care.
Some people may benefit more from alternative over 50s mortgage options. We’ll look at the full picture before recommending anything.
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For many, their home holds untapped value that could help with day-to-day life, support family or cover larger expenses.
A lifetime mortgage allows you to release that equity as a lump sum or smaller amounts over time.
This could be used for things like clearing debts, improving your home, covering care costs or helping your children buy their own.
With a drawdown plan, you only pay interest on the money you take, which can save you more over time.
We’ll explain how each option works and make sure you understand what it means for your future plans.
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Buying a new home at age 55 or over can be difficult when your income no longer fits standard mortgage criteria.
A lifetime mortgage can help bridge that gap, letting you buy without the pressure of monthly repayments.
People use this to move closer to family, downsize after separation or find a home better suited to their needs.
The loan is secured against your new home and repaid when it’s sold in the future.
We’ll talk through the costs, whether to pay the interest and what this could mean for inheritance.
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They were great when handling our mortgage application even though it was a bit different to the normal one. Highly recommended
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The team at UK Moneyman have been excellent, really informative, providing sound advice with no judgement and supporting the best possible way forward for myself. I would definitely use the team again, they’ve made the whole process simple and...
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Great company to work with, very helpful and excellent communication. Chris and Jo did a great job with our application. I highly recommend.
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Excellent speedy service and always available to work around the best times for us, including calls at weekends
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Having dealt with Leo previously I knew I would be getting a brilliant service and a good deal.
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Very helpful.Quick response to any questions or concerns. Selected the right product to meet our requirements.
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More on Lifetime Mortgages
A lifetime mortgage is a long-term commitment that can have an impact on your finances, your family and any means-tested benefits you receive. That’s why getting advice from a qualified mortgage advisor is an important part of the process.
You may find there are other types of mortgage that suit you better. This could include a regular mortgage, a retirement interest-only mortgage, or even short-term options like personal loans or credit cards, depending on what you’re trying to achieve. There may also be grants or other forms of financial support available to you.
A mortgage advisor will explain how the interest on a lifetime mortgage works, how it can affect inheritance, and whether making repayments could save you money in the long run. They’ll also show you features that may be available, such as downsizing protection or the ability to make overpayments.
We’ll take the time to understand what you’re hoping to do, then offer a recommendation based on your individual circumstances.
The two main types of lifetime mortgage are lump sum and drawdown.
With a lump sum lifetime mortgage, you release the equity as one single amount. This might be used to clear an existing mortgage, pay for home improvements, or make a large purchase. Interest is charged on the full amount from day one, though you can usually choose whether to pay this monthly or let it roll up.
A drawdown lifetime mortgage works a little differently. You agree a maximum amount with your lender, but only release the funds when you need them. You only pay interest on what you draw out, which can reduce how much you owe in the long term. This option can help to preserve your remaining equity or reduce the impact on any means-tested benefits.
Your mortgage advisor will help you decide which approach makes sense based on how much you need to borrow, whether you need the money all at once, and what you want the mortgage to do for you.
If you’re aged 55 or over and own your home, a lifetime mortgage may offer a flexible way to access the value tied up in your property. It can be used to clear debts, help family, fund a purchase, or improve your standard of living.
That said, it isn’t right for everyone. Our mortgage advisors will always look at all other options first, especially if you have enough income to support a regular mortgage or if downsizing is something you’d consider.
In many cases, we’ll talk through things with your family too, though that’s completely up to you. It’s important that you’re comfortable with the decision and understand how it could affect your home, your estate, and your future plans.
Unless you choose to repay some or all of the interest, the answer is usually yes. Lifetime mortgages charge compound interest, which means the interest is added to your balance and grows over time.
How much this affects your loan depends on how long the mortgage runs, the interest rate, and whether you make voluntary payments. Some people choose to pay all the interest each month, others make occasional payments when they can, and some don’t make any payments at all.
Most plans recommended by our mortgage advisors allow for repayment flexibility. That could include regular interest payments, one-off overpayments, or product features that help limit how much the loan increases.
We’ll talk through each of these options with you so you understand how your mortgage may affect what’s left for your estate or for future costs.
Yes, many homeowners use a lifetime mortgage when moving to a new property. This could be to downsize or relocate somewhere closer to family or support. With the right plan, it’s possible to fund part of your move through the equity in your existing home.
If you’re in a position where your current home hasn’t yet sold, and you’ve already found the property you want to buy, we can help you explore bridging loan options alongside your lifetime mortgage plans. This allows you to act quickly without needing to delay your purchase.
Whether you’re hoping to stay near loved ones, reduce your living space, or find a property that suits changing needs, we’ll explore all the options with you. Many products offer flexibility, such as optional interest payments and the ability to make overpayments.
If you’re using your lifetime mortgage to purchase a property, the loan is usually repaid when the home is sold, either after death or if you move into long-term care.
The overall cost of a lifetime mortgage depends on several factors, including how much equity you release, your age at the time of application, the interest rate of the product, and whether you’re making any interest payments.
Some plans allow you to take funds in stages, known as a drawdown facility. This means you’ll only pay interest on the amounts you actually withdraw, which could reduce the total cost compared to taking a lump sum.
As with a standard mortgage, there are setup costs to consider. These might include property valuation fees, advice fees, solicitor fees, and possibly a fee for the product itself. In most cases, it’s a requirement to receive independent legal advice before your plan completes.
Our team will explain all associated costs clearly and provide a personalised recommendation based on your situation.
It can reduce the amount that’s left behind, depending on how your plan is structured. Interest will accumulate on your loan, especially if you choose not to make monthly repayments. Over time, this can significantly reduce the value of your estate.
Some homeowners choose to pay the interest in full, so that only the original loan is repaid when the property is sold. Others may allow the interest to roll up, increasing the balance that will eventually be owed.
The amount of equity you release also plays a role. The more you release, the more your estate could be affected. If leaving an inheritance is a key part of your plans, we’ll make sure this is discussed with you in detail during your appointment.
It’s often helpful to involve family in these conversations. Many of our customers release funds specifically to gift money to family now, for example, to help with a house deposit.
You may also want to speak with a tax advisor about the potential impact on inheritance tax.
If you think you’ll need access to more money in the future, this can be factored in at the start of the process. Many lifetime mortgages now come with a drawdown facility, allowing you to access additional funds later without needing to apply for a new loan.
This approach can reduce how much interest builds up, as you’ll only be charged on the amounts you’ve withdrawn, not on the total facility.
If your existing plan doesn’t offer drawdown, you might be able to request a further advance from your lender. This would involve a new affordability check and potentially a new interest rate.
We’ll help you understand whether it’s better to take out a drawdown plan now or revisit your options later if and when you need them. Your advisor will explain how each route could affect your costs and flexibility in the long term.
A lifetime mortgage offers flexibility for homeowners aged 55 and over, allowing them to release equity without giving up ownership of their home. There’s no obligation to make monthly payments, although many people choose to pay the interest to reduce the final balance.
This type of mortgage can help fund a property purchase, repay an existing mortgage, clear debts, make home improvements, or provide financial support to family. It’s also a way to boost your income during retirement through tax-free lump sums or smaller drawdowns over time.
Most lifetime mortgage products offer flexible features such as overpayments, interest repayments, and options for joint or sole applications. As members of the Equity Release Council, all lifetime mortgage plans we recommend include the No Negative Equity Guarantee.
This ensures that your estate will never owe more than the property is worth when it’s sold, provided it’s sold at market value.
Lifetime mortgages are designed to be long-term commitments, but that doesn’t mean you’re locked in forever. If your circumstances change or interest rates drop, it may be worth reviewing your mortgage.
Even a small rate reduction could make a noticeable difference over time, and we can assess whether a new plan might save you money overall.
If you receive a lump sum such as an inheritance, you may be able to repay your lifetime mortgage in full. Some lenders may apply early repayment charges, though others allow overpayments without penalty, depending on the terms of your plan.
Modern lifetime mortgage products are more flexible than they once were. Many allow monthly or annual overpayments, and some come with built-in features to accommodate your future plans.
As part of your advice journey with us, we’ll explore your needs carefully to help ensure your plan is set up with the right level of flexibility from the start.
It is possible to repay a lifetime mortgage early, though doing so may come with early repayment charges. These vary depending on the lender and the terms of your plan.
If you receive an inheritance, downsize, or experience a change in circumstances, it may be worth reviewing your plan. Some lenders allow a portion of the mortgage to be repaid each year without penalty, which can reduce the overall interest charged over time.
Your mortgage advisor will help you explore whether an early repayment is viable for your situation and explain the implications clearly.
With a lifetime mortgage, interest is charged on the amount you borrow. You can choose to pay the interest monthly, in part, or not at all.
If you don’t make any payments, the interest will compound. This means you’ll be charged interest on the interest that has already built up, which increases the overall amount repayable in the long term.
Some plans offer features to help manage this, such as the ability to make voluntary repayments or switch to paying interest if your situation changes.
Our mortgage advisors will show you how the interest works on different plans and how your choices can affect your future borrowing and inheritance.
Yes, there are circumstances where a lifetime mortgage application may be declined. Lenders will look at several factors including your age, property type, the value of your home, and any existing mortgage or secured debt.
Issues such as property condition, unusual construction types, or not meeting the minimum loan criteria can lead to a refusal. In some cases, the lender may offer a lower amount than expected rather than decline the application outright.
Our mortgage advisors will review your case carefully before applying to make sure the lenders we approach are suitable for your needs. If equity release is not the right fit, we’ll explore alternative options with you.
In some cases, it may be possible to switch from a lifetime mortgage to a different product. For example, if your income improves, a retirement interest-only mortgage or a standard residential mortgage might be more suitable.
Switching could help reduce the overall cost of borrowing, but early repayment charges and other fees may apply. It’s important to consider all of these before making a change.
Our advisors will carry out a full review and let you know whether switching is realistic for your situation.
If you move into long-term care, your lifetime mortgage will usually be repaid from the sale of your property. This typically happens once the decision is made that you’ll no longer be returning home.
For joint applicants, the mortgage remains in place until the last surviving homeowner either moves into care or passes away.
If this is something you’re concerned about, let your mortgage advisor know early on. We’ll help you understand how this could affect your estate and what options are available if you want to preserve more equity.
Monthly repayments are not required with most lifetime mortgage plans, though many people choose to pay interest to help manage the total owed.
You may be able to make full or partial interest payments, depending on the lender and the product. Others prefer to let the interest roll up, especially if they want to keep their monthly outgoings low.
Our advisors will help you decide which approach is right for you, based on your income, plans, and how much inheritance you’d like to leave behind.
A lifetime mortgage is one type of equity release product. Equity release refers to any method of accessing the value built up in your home without having to move.
While lifetime mortgages are the most popular option, there are other types such as home reversion plans, though these are far less common.
If you’re thinking about equity release, we’ll help you understand how a lifetime mortgage compares to other products and whether it’s the right fit for you.
We'll never prioritise business over your needs. We're here to make sure you end up with the best result for you and your family.
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We'll never charge you just to sit down, answer your questions and chat about your goals or your situation, we're only paid on results.
We pride ourselves on trying to be as accessible as we can be. That means appointments from early until late, every day of the week.
Our advisors will take the time to run through everything with you, ensuring you understand your deal. Your family are welcome to be there too.
We will compare different lifetime mortgage deals across the market. We have a large panel of mortgage lenders to choose from.
We know this and will never just push equity release as your only option. If there are alternative options out there, we will always look at those first.
Mortgages are more accessible than ever for older borrowers and we actively encourage this. It's not "later life", it's just another mortgage option.
With a lifetime mortgage, interest is typically added to the total loan amount each month. If you don’t make monthly interest payments, this interest will compound.
That means each new month’s interest is calculated based on both the original loan and the interest already added. Over the years, this can significantly increase the overall amount owed.
Some homeowners choose to make voluntary interest payments to reduce the impact of this compounding.
Others prefer the loan to roll up and be repaid from the sale of the property in the future. The interest rate you receive is usually fixed for life, offering certainty about how the loan will grow over time.
This type of borrowing is designed to suit people who want access to equity without monthly repayments, but understanding how interest works is key when thinking about your future plans and the impact on your estate.
Many people believe that lifetime mortgages are inflexible, but modern plans are much more adaptable than they used to be.
Most lenders now allow a range of features that provide more control over how the mortgage works for you.
Voluntary repayments can often be made to reduce the overall cost. Depending on the lender, you might be able to make monthly or yearly payments, up to a certain limit, without facing any penalties.
Cash reserve facilities are another flexible feature. These give you the option to access additional funds in future without going through a new application, providing a financial safety net if needed.
Some plans also offer portability, which means you could move home in future and take your mortgage with you, subject to the lender’s approval.
These features can all be explored as part of the advice process, ensuring the plan you choose fits your lifestyle and future goals.
Lenders offering lifetime mortgages use different criteria than those offering traditional mortgages.
Age is a key factor, with most plans available from age 55 onwards. Your property’s value and type also play an important role, as it forms the security for the loan.
The amount you can release is typically based on your age, the property value, and sometimes your health or lifestyle.
If you have certain medical conditions or meet other qualifying criteria, you may be offered a higher release amount or more favourable terms under what’s known as an enhanced lifetime mortgage.
Income and credit history are generally less important than they are for standard mortgages. That said, each lender has its own approach, so an advisor will work with you to find a plan that fits your needs and the lender’s requirements.
When considering a lifetime mortgage, you’ll have the option to take the money either all at once or in smaller instalments over time. These two methods are often referred to as lump sum and drawdown.
A lump sum release gives you the full amount up front. This might suit people with a specific goal such as clearing a mortgage or making a large purchase.
The main drawback is that interest is charged on the whole amount from day one, which could increase the total cost of borrowing.
A drawdown lifetime mortgage allows you to take an initial release, with the option to access more later from a pre-agreed reserve.
Interest is only charged on the money you’ve actually taken, not the full facility. This approach is often better for managing interest costs over time and gives you more flexibility if your needs change.
Which option suits you best will depend on your circumstances, spending plans, and how you feel about interest building up over time.
A lifetime mortgage is one way to access the value in your home, but it’s not the only later-life mortgage option. It’s important to compare different routes before making a decision.
A retirement interest-only (RIO) mortgage allows you to pay interest each month, helping to control the total balance owed. Unlike a lifetime mortgage, this type of product often requires a regular income to be approved.
You may also be eligible for a standard repayment or interest-only mortgage, especially if you’re still working or have a good pension income.
In some situations, downsizing or using other financial products such as personal loans or savings might offer a more suitable way forward.
Every situation is different, and the role of your mortgage advisor is to help you understand which path offers the most long-term value for your needs and objectives.
Lifetime mortgages are designed to be repaid when your home is sold, usually when you pass away or move into long-term care.
That said, if you decide to sell your property and move, it may still be possible to keep your lifetime mortgage in place.
Most lenders offer portability, which means you can transfer the loan to a new home, as long as it meets the lender’s criteria.
The new property would need to be acceptable to the mortgage provider in terms of type, location, and value.
In cases where the new property is worth less than your current home, you might need to repay part of the loan.
There may also be early repayment charges, although some products offer downsizing protection to avoid this.
If you are considering moving in the future, it’s important to raise this during your initial discussions so your plan includes as much flexibility as possible.
While interest does roll up on most lifetime mortgages, there are several features that can help keep costs down.
Making regular or occasional payments towards the interest is one of the most effective ways to reduce the total amount repaid.
Some lenders allow you to make overpayments up to a certain limit each year without any early repayment charges. Over time, these can make a significant difference to the loan balance.
Drawdown facilities also help manage costs, as interest only accrues on the money you actually withdraw, not on the full amount available.
Certain products also include inheritance protection features. These allow you to ring-fence a portion of your property’s value to be passed on, even if the rest is used to repay the loan.
Understanding these options early on helps you shape the mortgage in a way that aligns with your financial plans and preferences.
In some cases, your personal health and lifestyle could improve the terms of your lifetime mortgage.
Known as enhanced or impaired-life plans, these products are designed for those with certain medical conditions or lifestyle factors.
Lenders offering enhanced lifetime mortgages may allow you to release more equity or offer a lower interest rate, depending on the circumstances.
Conditions that may be considered include diabetes, high blood pressure, a history of smoking, or serious medical diagnoses.
To explore whether an enhanced lifetime mortgage is available, your mortgage advisor will typically ask a few health-related questions during the process.
These are designed to help identify any options that could benefit you based on your individual situation.
While not everyone will qualify, it’s always worth checking. If you are eligible, the advantages can be meaningful both in terms of borrowing power and long-term cost.
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UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© UK Moneyman Limited 2025.
UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© UK Moneyman Limited 2025.
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