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Equity release advice is regulated and suitability matters.
FCA rules require firms giving advice to take the necessary steps to ensure suitability.
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Lifetime Mortgages & Equity Release Broker
A lifetime mortgage could help you unlock tax efficient cash from your home without having to move, giving you more flexibility in later life while you stay in the property you know and love. If you are 55 or over, you may be able to release equity whilst keeping ownership of your home and choose whether to make repayments monthly is right for you or not. The key is making sure equity release is genuinely right for you. That means understanding the long term cost, the impact on your estate and benefits and whether there are better alternatives before you go ahead.
What is a Lifetime Mortgage?
A lifetime mortgage is a type of equity release that allows homeowners aged 55 or over to borrow money secured against their home, without making mandatory monthly repayments.
With a lifetime mortgage, you remain the legal owner, and there are usually no mandatory monthly repayments. Instead, the loan and any interest is typically repaid when the property is sold after you pass away or move into long term care. Most plans allow you to make repayments, if you wish to, giving you control over how you manage your plan.
For many people, it provides breathing space in retirement. It can help repay an existing mortgage, supplement income, fund home improvements, or support family members.
Once your working years are behind you, finances shouldn’t feel like a constant worry. A lifetime mortgage can offer the extra flexibility needed to enjoy this next chapter with those who matter most. Our specialist advisors are here to help you along your way.
Looking for Lifetime Mortgage Advice?
Types of Lifetime Mortgage
There are two different lifetime mortgage structures available for you to pick from. Each offers a slightly different repayment plan – we will explain the long term impact of both options clearly, so you understand how the balance could change over time.
Interest Roll-Up Mortgages
With an interest roll up lifetime mortgage, you don’t make any monthly repayments. Instead, the interest is added to the loan and compounds over time. The total balance is repaid in full when the property is eventually sold.
This option appeals to those who want to avoid monthly commitments in retirement.
Interest-Serviced Mortgages
With an interest serviced lifetime mortgage, you choose to pay some or all of the monthly interest. This helps manage how quickly the loan balance grows.
Some products offer flexible payments, allowing you to stop and start payments within agreed limits if your income changes.
Learn More About Equity Release How Does Getting a Lifetime Mortgage Work?
With The Mortgage Broker, securing a lifetime mortgage couldn’t be easier.
1. Initial conversation
We start by understanding your goals and circumstances. This includes reviewing your property value, income, and any existing mortgage or secured loans.
2. Specialist lender search
We search the options available to you across our panel of specialist lenders and provide independent advice and guidance on how each product works and what it could mean for you and your estate.
3. Your options and provisional eligibility
We indicate the type of options available to you and confirm your provisional eligibility. This gives you a clear idea of how much you may be able to borrow, subject to further lender checks.
4. Application, valuation and legal advice
If you decide to proceed, the lender will carry out their checks and arrange a property valuation. You will also receive independent legal advice before completion. Once everything is finalised, you receive your agreed lump sum or access to a drawdown facility.
It is important to note that our role does not end here. If your circumstances change and you need further support with your lifetime mortgage, our team will still be available to help.
Features of a Lifetime Mortgage
- You continue to own your home.
- Available to homeowners aged 55 and over, either in or approaching retirement.
- Access funds as a lump sum, drawdown, or both.
- No mandatory monthly repayments on roll up products.
- Fixed interest rates for life on most products.
- Regulated by the Financial Conduct Authority.
- No negative equity guarantee on products, if the plan meets Equity Release Council standards.
Why Apply for a Lifetime Mortgage?
There are many reasons why someone in retirement or approaching retirement might consider a lifetime mortgage.
Boosting Income During Retirement
Unfortunately, retirement income doesn’t always stretch as far as you’d hope, and predicting future expenses can be tricky.
A lifetime mortgage can provide a lump sum or access to funds through a drawdown facility, giving you additional financial breathing room. This may help cover day to day living costs, unexpected expenses, or simply provide greater comfort and stability in later life.
Repaying an Existing Mortgage
Many homeowners reach retirement with an outstanding interest only mortgage or secured loan.
If a traditional remortgage is not suitable based on age or income, a lifetime mortgage can be used to clear existing borrowing. This removes monthly repayments in many cases and can ease financial pressure.
We will always assess whether alternative solutions, such as a later life remortgage or Retirement Interest Only mortgage, could be more appropriate.
Supporting Family Members
Some clients we work with choose to release equity to support children or grandchildren.
This might involve helping with a property deposit, funding education costs, or offering financial support during difficult periods. A lifetime mortgage allows you to assist family while continuing to live in your home.
It is important to understand how this may affect inheritance, and we will discuss this openly.
Staying in the Family Home
For many people, this is the most important factor. Downsizing is not always practical or desirable for everyone.
A lifetime mortgage allows you to remain in familiar surroundings, close to family, friends, and community, while accessing some of the value tied up in your property and still leaving the option to move in the future if you wish.
What do Lifetime Mortgage Costs Look Like?
When considering a lifetime mortgage, the main cost is the interest charged on the amount you borrow. However, there are several elements that make up the overall cost of the product.
Understanding these costs clearly is essential before making a decision, and we can help you calculate this.
Interest Rates
Most lifetime mortgages offer a fixed interest rate for life. This provides certainty, as the rate will not change in the future.
The interest is charged on the amount you borrow. If you choose not to make monthly payments, the interest is added to the loan each month, but as we’ve discussed you can also choose to pay this off in one lump sum upon the sale of your property.
Compounding Interest
With an interest roll up lifetime mortgage, interest is added to the loan balance. Future interest is then calculated on the new, higher balance.
Over time, this compounding effect can significantly increase the total amount owed. The longer the mortgage runs, the more pronounced this effect becomes. This is what can impact the inheritance you’re able to leave at the end of your life.
If you choose an interest serviced product and pay some or all of the interest each month, you can reduce or prevent this growth.
We provide personalised illustrations so you can see how the balance may change over time under different scenarios.
Other Costs May Include:
- Arrangement fees
- Valuation fees
- Legal fees
- Early repayment fees
- Mortgage broker fees
Other Later Life Mortgage Options
When it comes to equity release in your retirement years, there are many options available for you to consider:
Later Life Remortgages
These remortgages help homeowners 55+ adjust existing borrowing or release equity later in life.
Retirement Interest Only Mortgages
RIO mortgages let you pay interest only on your loan, keeping monthly costs lower in retirement.
Get in Touch with the Lifetime Mortgage Experts
Retirement is a time for relaxing and enjoying time with family, not worrying about finances.
We’re here to work with you and suggest flexible financial solutions for releasing equity from your property, allowing you to plan effectively for your future.
Contact our Team Today
Why Work With The Mortgage Broker?
The Mortgage Broker is a team of award-winning mortgage experts with the tools and expertise you need to accelerate the process of getting a mortgage. Take a look at how we’ve helped other people just like you:
I wanted to raise as much cash as possible to clear debt. I’m concerned I may be forced to sell our family home.
Brian called, they have got themselves into debt and it’s becoming unmanageable, they want to raise as much as possible to clear debt. if not they may be forced to sell.
Credit cards and loans close to limits. £100k between them. credit scores have been effected due to limits on cards. however scores aren’t bad. His is 882 and hers is 845 on checkmyfile
Car finance costing £280 £19k outstanding which is to remain
PV around £340000
Mortgage currently £228k with Metro for another 2 years happy to pay ERC
Have recent BTL on property in London
Joint mortgage with wife
He is emp on £56000 lecturer
Wife is emp on £58000
2 children – full time school so no fees
he’s was honest and said he’s spoken to a broker who said he could not help them,, but he was unsure who they had tried and how many lenders they had on their panel
Challenges were the level of debt the clients had over £100k of unsecured debt
Also the loan to value required to get the max possible was 90% which is very rare for debt consolidation.
Spoke with lenders who could consider debt con at 90% then looked at calculators to check affordability and also checking lenders that did not have a debt to income ratio as the level of debt was too high to pass if the lender did, it was then down to getting through a successful decision in principle which we did.
The outcome for the client was that it has cleared £86,047 of credit card debt which has taken a lot of pressure of the monthly payments for these, it has also given a positive cash flow going forward of £734 which they can use to clear down any remaining debts they have and live a better life with their children.
Client has saved £30,157 over the mortgage term by consolidating the debt and the positive cash flow provided by consolidating means the other debts will be reduced far quicker meaning even further savings.
Feedback received from the customer
Advisor: Chris Evans
Speak to a Lifetime Mortgage Advisor Today
Looking to plan for your retirement and are unsure which direction is best for you? Speak to one of our friendly lifetime mortgage advisors today.
Get Free Lifetime Mortgage Advice
Lifetime Mortgage FAQs
Who qualifies for a lifetime mortgage?
You must usually be aged 55 or over and own a UK property that meets lender criteria. The amount available depends on your age, property value, and sometimes health and lifestyle factors.
Is a lifetime mortgage a good idea?
It can be appropriate for homeowners who want to access funds in retirement and remain in their home. It reduces the value of your estate and may affect benefits, so regulated advice is essential.
Do you pay tax on a lifetime mortgage release?
Funds released are usually tax free because they are treated as a loan rather than income. If you are unsure about your tax position, independent tax advice is recommended.
What happens if I die with a lifetime mortgage?
When the last borrower passes away or moves into long term care, the property is typically sold. The loan and accrued interest are repaid from the sale proceeds, and any remaining amount forms part of your estate.
Can I pay off a lifetime mortgage early?
Some products allow early repayment, although early repayment charges may apply. We will explain any potential charges before you proceed.